What type of mortgage is typically better for large development projects spanning multiple properties?

A blanket mortgage is particularly well-suited for large development projects that encompass multiple properties because it allows the borrower to secure financing using more than one piece of real estate as collateral. This type of mortgage simultaneously covers several parcels, which provides flexibility for developers who may want to build, sell, or refinance individual lots or properties within the larger project without the need for separate loans for each one.

This can streamline the financing process for developers, making it easier to manage cash flow and project costs across a large development. Furthermore, as properties are sold off or refinanced individually, the blanket mortgage can be partially released for those specific parcels, allowing for greater financial maneuverability.

In contrast, other types of mortgages, such as a conventional mortgage, typically apply to a single property, making them less effective for overarching developments. Pledged account mortgages and graduated payment mortgages also do not align with the typical financing needs of large-scale projects in the same manner as a blanket mortgage does.