A Progress Draw Mortgage means that funds are advanced in intervals as your house is being built. There are usually 3 draws at 35%, 65% and 100% completion. A Land Draw (conventional only) may be required if you’re also purchasing the land.

Each draw requires a Progress Inspection Report, which details the percentage complete prior to the advancement of funds. Most lenders assign 2 mortgage numbers in a progress draw, one that represents the actual draw of funds and another for the final advance of funds. Once the house is 100% complete and final funds have been advanced, the mortgage number 2 is the “completion” mortgage.

The final advance will not be released until the final inspection confirms completion, and the final mortgage documents have been signed by you and returned to the lender by your lawyer.

What documentation are required in order to apply?

• Construction contract including costs

• Construction plans or blueprint of the home

• Tarion approved builders resume

• Site preparations including municipal services for the lot

• For the land, a copy of the deed as evidence of owners and/or a copy of the purchase and sales agreement

• Confirmation of required funds to bring construction to 35% completion stage

• Confirmation of income/employment