# How do progress draws work and what triggers each release?

> Progress draws are released at pre-defined construction milestones, typically: (1) Lot purchase/excavation, (2) Foundation complete, (3) Framing/roof, (4) Lock-up (windows, doors, rough mechanicals), (5) Completion.

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/how-do-progress-draws-work-and-what-triggers-each-release

## Answer
Progress draws are released at pre-defined construction milestones, typically: (1) Lot purchase/excavation, (2) Foundation complete, (3) Framing/roof, (4) Lock-up (windows, doors, rough mechanicals), (5) Completion. Each draw requires a third-party inspection report confirming the milestone. The lender holds back 10-15% until final completion and occupancy permit issuance. Draw schedules vary by lender — some offer 3-draw, others 5-draw programs.

## Related guide
- https://ratellow.com/guides/construction-mortgages-canada

## Sources
- CMHC Progress Advance Program — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf
- B-20 Construction Lending Standards — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.4