Pre-construction mortgage:
plan the financing now,
lock the rate before you close.
Get the builder-ready pre-approval now, then lock a rate hold once your closing is inside the lender's hold window (often up to 120 days).
A pre-construction mortgage in Canada is arranged up to 24–36 months before your closing date, with the rate held for the extended period at a small premium. Lenders underwrite based on the purchase price at signing and your income today, then re-verify employment at occupancy. Assignment clauses, rising property taxes, and occupancy fees during the interim period are unique to pre-construction — a broker explains all three before you sign.
Four ways we manage
your pre-con financing.
Pre-construction closing dates float — and no standard rate hold lasts that long. We plan every stage in advance.
Builder-ready pre-approval when you sign
Most builders require a pre-approval letter within days of signing your APS. We prioritize these — often delivered within a few business days of complete documents — tailored to exactly what your builder requires.
Rate holds timed to your closing
Standard holds run 90–120 days. We monitor your build milestones and place the hold once closing is inside the lender's window — not too early to expire, not too late to miss savings.
We track rates and milestones to closing
Pre-construction timelines float. We track your build, re-qualify your file as occupancy nears, and re-shop across 100+ lenders at every stage — so you're never scrambling when a date shifts.
Occupancy fee calculated in advance
The interim occupancy fee — paid to the builder before your mortgage funds — can run thousands per month. We calculate it upfront so it's in your budget, not a surprise at move-in.
Pre-approval to closing —
three stages.
Pre-construction timelines run 12–36 months. Engaging early is the only way to control a timeline you don't set.
Engage early — get the pre-approval letter
Get a builder-ready pre-approval when you sign your APS. For a new Ontario condo, arrange it within the 10-day cooling-off period. We start tracking your build milestones from day one.
Re-qualify and lock the rate hold
Once closing is within the lender's hold window (often up to 120 days), we lock a rate hold and keep re-shopping until funding. If your income changes or rates drop, we adjust the plan.
Close on registration
When the building registers (for condos), we firm up the approval, your lawyer funds the mortgage, and staged deposits flow toward your down payment. We coordinate with your builder's lawyer end-to-end.
We can help across
every pre-con scenario.
Tap any situation below to see how we approach it.
If you’re…You just signed your APS and need a builder pre-approval letter fast
You just signed your APS and need a builder pre-approval letter fast
We prioritize builder-ready pre-approval letters. With complete documents (ID, income, proof of down payment), we typically deliver within a few business days — tailored to exactly what your builder requires.
Get my pre-approval letterIf you’re…Your builder's closing date has shifted and you're not sure when to lock a rate
Your builder's closing date has shifted and you're not sure when to lock a rate
We track your Tarion critical dates and monitor lender rate-hold windows. When closing moves inside the window, we lock and re-shop if rates improve before funding.
Start rate monitoringIf you’re…Your income or employment changed since you signed
Your income or employment changed since you signed
We re-qualify early. If your story improves, you may qualify for better pricing. If it worsens, we identify alternatives before occupancy when you still have time to act.
Re-qualify my fileIf you’re…You're worried the appraisal will come in below your purchase price
You're worried the appraisal will come in below your purchase price
Appraisal shortfalls are real in a softer market. Lenders fund on the lower of purchase price or appraised value — meaning you must cover any gap in cash. We plan for this scenario early and can move a file across 100+ lenders.
Assess my appraisal riskIf you’re…You want to understand your occupancy fee before move-in
You want to understand your occupancy fee before move-in
The occupancy fee combines interest on your unpaid purchase balance, estimated property taxes, and projected condo fees — capped under Ontario's Condominium Act. We calculate it upfront so it's budgeted, not a shock on move-in day.
Calculate my occupancy feeIf you’re…You're considering assigning your pre-construction unit before final closing
You're considering assigning your pre-construction unit before final closing
Assignment sales are sometimes permitted, but only when the builder and condo declaration allow it, and lenders underwrite them cautiously with extra documentation. We handle assignment-friendly lender selection end-to-end.
Explore assignment optionsPre-construction vs resale:
how financing differs.
Knowing every difference ahead of time is how you plan without surprises.
| Factor | Pre-construction | Resale |
|---|---|---|
| When mortgage funds | At registration — often 1–3 years after signing | On your agreed closing date |
| Rate lock timing | Placed 90–120 days before registration | Held from acceptance to closing |
| Down payment | Staged deposits (typically 15–20%) over months | Full amount at one closing |
| Appraisal timing | At registration — market may have shifted | Before you firm up the offer |
| Occupancy period | Interim occupancy fee (to builder) before mortgage funds | None — keys and mortgage happen together |
| Key deposit protection | Tarion — up to $60,000 freehold / trust for condos | TICO (if using a real estate agent) |
Rebate amounts and eligibility rules vary by purchase price, buyer type and APS date. Confirm with your builder, accountant and tax advisor. We coordinate your full closing picture.
Common questions,
clear answers.
Pre-approval letters, rate holds, occupancy fees, and appraisal risks — answered plainly.
Do I need a mortgage pre-approval letter to buy a pre-construction home?
Usually yes. Most builders require a pre-approval letter to firm up the deal — often within a few days of signing the APS, and some agreements require you to deliver the letter by a set date. This is an obligation, not a condition that lets you cancel if financing falls through, so have your lawyer review the APS — for a new condo, within the 10-day statutory cooling-off period; freehold purchases have no statutory cooling-off. We provide a builder-ready letter quickly so you don't lose the unit.
How fast can you provide the pre-approval letter my builder is asking for?
Often within a few business days of receiving complete documents (ID, income, proof of down-payment funds), depending on the file. We tailor it to your specific builder's requirements and prioritize it when a deadline is tight.
Does the pre-approval letter guarantee my mortgage at final closing?
No — it shows you qualify today and gets the builder comfortable, but the binding mortgage is arranged near completion, once the unit registers and can be appraised. We re-qualify and re-shop your file across 100+ lenders as occupancy approaches, so the letter you hand the builder is backed by a real plan to fund.
How early can I get a mortgage on pre-construction?
You can get a pre-approval as soon as you sign; for a new Ontario condo, arrange it during the 10-day cooling-off period in which you can still cancel the agreement. The mortgage itself is approved and funded near final closing, once the unit can be appraised.
Will my rate hold last until occupancy?
Usually not if you sign years ahead. Standard holds are often 90–120 days, so we place the hold once closing is inside the lender's window. Some lenders offer longer holds on new builds, usually with conditions, and we check those for your dates.
What if rates drop before occupancy?
We re-shop. Many lenders will lower your rate at funding if their pricing falls during the hold; if yours won't, we can move the file to a lender that is lower before closing.
What if my income changes?
We re-qualify. If your story improves, great. If it worsens, we identify alternatives early — much better than at occupancy when you have no time.
What's an occupancy fee?
A monthly payment to the builder (not your lender) between occupancy and registration of a new condo. Under Ontario's Condominium Act it can't exceed interest on the unpaid balance plus estimated property taxes and projected common expenses. It doesn't pay down your mortgage.
Can I assign my pre-construction unit?
Sometimes (depends on builder + governing condo declaration). Lenders treat assignments cautiously — we handle the documentation.
What if construction is delayed?
Delays are common. Your builder must follow the critical dates in your Tarion addendum, and delays beyond them can entitle you to compensation of up to $7,500. A rate hold doesn't extend automatically, so we re-time or re-shop the hold for the new date.
Should I pre-construct in this market?
Depends on your timeline, market, and risk tolerance. We don't sell pre-construction — we just finance it for buyers who've decided. Our advisors can model carry costs if you want a sanity check.
- 1.Ontario e-Laws. Condominium Act, 1998, S.O. 1998, c. 19 (ss. 73, 80, 81) (accessed Sep 2026).
- 2.Tarion. How does deposit protection work on new homes? (accessed Sep 2026).
- 3.Tarion. Closing & occupancy delays (accessed Sep 2026).
- 4.Canada Revenue Agency. GST/HST new housing rebate (accessed Sep 2026).
- 5.Canada Revenue Agency. GST/HST new residential rental property rebate (accessed Sep 2026).
- 6.Department of Finance Canada. Boldest mortgage reforms in decades come into force today (December 15, 2024).
- 7.Canada Revenue Agency. First-Time Home Buyers' GST Rebate (accessed Oct 2026).
- 8.Canada Revenue Agency. Ontario enhanced new housing rebate (Notice 346) (accessed Oct 2026).
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a specialist in your city
Pre-construction financing is available across Ontario and Canada-wide. Our advisors cover every major market and work with 100+ lenders from coast to coast.