A loan borrowed to finance the construction of a home and typically only interest is paid during the construction period. Once the construction is over, the loan amount becomes due and it becomes a normal mortgage. Financing to build a new home typically comes in the form a construction to permanent loan.
Mortgage process for building home:
1) Understanding your financial position for building home
2) Planning the build
3) Finding the right architect, designer or company.
4) The building contract
5) Working out your finance options
6) Manage the building phase and others.