Conventional Mortgage vs. Draw Mortgage: Which Is Right for Your Winnipeg Home?

When financing a home or investment property in Winnipeg, understanding your mortgage options is essential to making smart financial decisions. Two common types of mortgages are conventional mortgages and draw mortgages. Conventional Mortgage: A conventional mortgage provides the full loan amount upfront, usually best suited for purchasing completed homes. Interest starts accruing on the full loan amount immediately, and repayments follow a fixed schedule. Draw Mortgage: A draw mortgage releases funds in stages, typically used for new construction or renovation projects. Borrowers only pay interest on the amount drawn, helping reduce interest costs during building phases. Draw mortgages offer greater flexibility by aligning fund disbursement with construction progress. Which is right for you? If you’re buying a move-in-ready home in Winnipeg, a conventional mortgage may be the simplest and most straightforward option. However, if you’re building a custom home or investing in a new development, a draw mortgage can save you money and offer more control during construction. At Shay Homes, we work with clients to find the financing solutions that best fit their unique needs — ensuring your dream home or investment property is within reach.