Home Building 101 | Draw Mortgage vs. Completion Mortgage

– Today, we’re gonna
talk about the difference between a draw mortgage
and a completion mortgage for building a new home. Welcome to the show, guys. Today, we have Danielle Pendleton
here as a special guest. Danielle, what do you do? – I’m a mortgage broker with
Quantus Mortgage Solutions. I also sit on the board of directors for the Alberta Mortgage
Brokers Association. – So, one of the things that
comes up with buying a new home is there’s two different
types of mortgages that we do. One’s called a draw mortgage, the other one’s called completion. Can you tell us the
difference between these two? – Yeah, absolutely. So, a draw mortgage is typically used, with Sterling, for your
single-family homes, or those builds that are
gonna take a while longer, and they get funded in increments. Usually, the rate is set at first draw, but it does vary by lender. There also are not as
many options, lender-wise, when it comes to the draw mortgage, so if there are qualification issues, a completion mortgage can be best. Completion, on the flip side, is offered with most of your builds, aside from those ones that we mentioned, and those can be great because, since the rate isn’t set early on, it’s really nice if you’re in
a falling rate environment. That way, you’re making sure
you’re getting the best rate and product that suits
your needs and goals. – Okay, yeah, so guys, definitely consult with your mortgage professional, when going for a draw mortgage
for a single family home. Sometimes completion may
be the better choice, going to save you a little
bit of money, right? – Yeah, absolutely.
– Okay. Thank you so much for
tuning in to this episode of Home Buyer’s Academy,
presented by Sterling Homes. Don’t forget to subscribe below and click on that bell
button to get a notification for every time we post
a new video, thank you.

Paul Whisler

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