The Real Estate Encyclopedia & Blog

Permanent Mortgage

by | Feb 6, 2026

In real estate finance, a permanent mortgage is a long term loan placed on a property after construction has been completed. It is typically used to replace short term construction financing and generally has a term of ten years or more.

Permanent mortgages are often referred to as take out loans because they take out, or pay off, the construction loan. This type of financing provides stable, long term repayment terms for the owner of the completed property.