While it is very commendable that you have most of the money necessary to purchase the lot and build the home, just remember - you can't eat sheetrock. In the US, the interest you pay on your mortgage is tax deductible. You might be wiser to finance as much as possible of your new home and then wisely invest the balance of your funds. Between the tax deductible interest and the wisely invested funds, you will generally come out ahead. And, in case of a rainy day or some sort of emergency you'll have those liquid funds to fall back on. I would recommend contacting a good financial planner. There are a number of good financial planners who are also mortgage brokers and can help you with the big picture.