Mortgage Handbook

New Home Mortgages

Obtaining a new home mortgage allows a borrower to finance the purchase of a newly constructed home.

Mortgages can be especially useful in this situation, as newly built houses often cost more than older structures, and may be subject to sales tax, depending on the jurisdiction in which you live.

One could argue that it is slightly less risky to mortgage a new home, since short-term maintenance costs will likely be lower, and there is a considerably lower chance of unexpected repairs and expenses. This can also result in lower home insurance premiums in many situations.