Building a new home is an exciting endeavour! But it can come with its fair share of complications. Basically, you will either be hiring a contractor, buying a new construction from a builder, or building the home yourself. Within these three categories there are two types of mortgages, completion or progress draw, that are available to you to finance the project. A completion mortgage implies that you do not need any of the borrowed funds until the home construction is completed, perhaps requiring a small deposit. A progress draw mortgage functions by allowing percentages of the borrowed funds to be released in intervals as construction progresses. In the event of a progress draw mortgage, a land draw may also be required if you are purchasing the land and inspections will be required at the pre-set intervals of construction.