If the mortgage is approved, you will draw money for the different stages of the construction project. This tactic is used by the lender to ensure that the money is going where it should. The first draw is optional – you get 15% to complete excavation and the building of the foundation. The second draw is 25% and is meant to do everything up to the roofing and weather protection. The third draw of 25% is meant to complete drywall/plaster, exterior wall cladding, furnace installation, plumbing, and to start wiring. The fourth draw of 20% completes kitchen cupboards installations, doors, and the bathroom. The final 15% completes the seasonal and exterior work. Before each draw, an inspector has to visit the upcoming building to ensure NHW (New Home Warranty) policies are being adhered to before further funds can be drawn. The borrower has to meet the cost of the inspections. At Approved Mortgage Broker, we will guide you on the applicable rules to ensure you know what you are getting into. As an example, it is important to know that once the mortgage is approved and signed, you don’t have the luxury of changing the mortgage amount to accommodate any changes or upgrades made to the property. We will help hunt for the lowest interest rates in the market. We will also help you get the terms that best suit you, keeping in mind that interest can be deducted from each advance or paid monthly.