In the context of construction, a mortgage is a type of loan that is used to finance the purchase of real estate or property for the purpose of building or renovating a structure. This type of mortgage is commonly referred to as a construction mortgage or a construction loan. The borrower of a construction mortgage typically uses the funds to pay for the costs associated with the construction project, such as materials, labor, permits, and other expenses.Construction mortgages are typically short-term loans that are designed to be paid off once the construction project is completed and the property is ready to be occupied or sold. These types of mortgages may have higher interest rates than traditional mortgages, due to the increased risk involved in financing a construction project. Lenders may also require more stringent approval