Local to Norfolk County
New-construction
mortgages
Know how your mortgage will fund your new home, whether you’re buying from a builder or building on your own lot. I’ll compare options across lenders, map out the costs you cover before funding and support you through to closing.
Finance a builder home or a custom build
Buying from a builder
A completion mortgage funds your home at closing, once it meets the lender’s requirements. I’ll review your purchase agreement, deposit schedule and closing date, so you can see how your financing lines up with the builder’s timeline.
Building on your own lot
A custom build usually needs a progress-draw mortgage, which releases funds in stages as construction moves ahead. I’ll look for lender programs that fit your land, builder and plans.
Plan for the money you need before funding
Deposits and construction invoices often come due before the lender releases any money. I’ll show you what to cover yourself and when.
Before you sign, I’ll map out:
- Builder deposits, upgrades and scheduled payments
- Living costs during the build, plus a reserve for unexpected costs
- Land, permits and site servicing
- Legal, appraisal and inspection fees
If the numbers leave you short, I’ll tell you before you commit. Talk to your lawyer about the contract and closing adjustments, too.
Know how construction draws work
With a progress-draw mortgage, the lender releases your money in stages, called advances. Each advance usually follows an inspection of the finished work.
I’ll walk you through the draw schedule, your payments and any holdbacks, the money a lender keeps back until its conditions are met. You’ll know what to cover between advances before the build starts.
Prepare for approval and final funding
I’ll keep you updated on what the lender needs as your financing moves ahead.
A complete application
I’ll confirm the income records, contract, plans and cost estimates your lender needs before I submit anything.
Changes handled mid-build
If your budget, builder, completion date or finances change, tell me and I’ll check it with the lender.
Ready for final funding
I’ll walk you through the remaining conditions, completion documents and your regular mortgage payment.
Questions about new-construction mortgages
How much down payment will I need?
It depends on what you’re buying. A completed new home from a builder can qualify for an insured mortgage with less than 20% down. A custom build has its own rules for land equity and the cash you need during construction. I’ll confirm your contribution for the home or project you have in mind.
Can the mortgage cover my builder deposit?
Usually not. A completion mortgage funds at closing, so early deposits come from your savings or another acceptable source. They can still count toward your down payment. I’ll review the deposit schedule and confirm how you plan to fund it.
Can land I already own count toward my contribution?
It can. Lenders look at your land’s appraised value, any existing financing on it and their program rules. Land equity doesn’t replace the cash you need for early construction costs, so I’ll review both.
What payments will I make during construction?
That depends on the lender. Some construction mortgages charge interest only on the money advanced so far. Regular payments start once the mortgage is fully funded. I’ll explain your payments during the build and after completion.
What happens if the builder delays closing?
Tell me as soon as the date changes. I’ll check your approval expiry, rate hold and any updated documents the lender needs. Extensions aren’t automatic, so I’ll also flag what the delay means for your move or temporary housing.
Will the lender cover cost overruns or a lower appraisal?
Not automatically. A higher build cost or a lower appraisal can leave a gap in your funding. The lender can then reassess the project or ask you to cover more yourself. We’ll discuss a contingency reserve when we review your budget.
Can I act as my own general contractor?
Some lenders consider owner-managed builds, with stricter requirements. Your experience, plans, cost estimates and available funds all count. I’ll confirm whether a suitable option is available before you plan around it.
Let’s talk about your new home
You don’t need a builder or plans picked out to get in touch. Tell me whether you’re buying from a builder or building on your own lot, and we can start there.
A first conversation costs nothing and commits you to nothing.