A construction mortgage is a type of home loan that provides financing specifically for building a new home or making significant renovations to an existing property. One of the main benefits of a construction mortgage is that it provides funding to cover the costs of construction, which can be difficult to obtain through other types of financing. Additionally, a construction mortgage can offer more flexibility in terms of payment schedules and interest rates. Another benefit is that you’ll only pay interest on the amount of the loan that has been drawn down, which can help keep costs down during the construction process.
A construction mortgage can offer a streamlined process for obtaining financing for both the land and construction costs, making it easier for you to manage the entire homebuilding process from start to finish.