Pre-Construction · Toronto · North York · Richmond Hill · Markham · Vaughan
Is your pre-construction closing coming up?
If you bought in 2021 or 2022, the price on your agreement and what a lender will appraise the unit at today may not be the same number. The difference is cash you have to bring to closing — and the builder's date does not move. Work out where you stand now, while there are still lenders to choose from.
Marjan Alaeddini, Mortgage Agent Level 1, Mortgage Alliance, FSRA Brokerage Licence #10530
When does your unit close?
Three figures from your own paperwork. You get the balance due, the month a lender wants your application by, and — only if you have a realistic idea of what the unit is worth today — the cash you would need at closing. Nothing about your income or credit is asked, because none of it is needed for this.
What the financing side usually looks like
- The lender uses today's appraisal, not your agreement price. A conventional mortgage lends up to 80% of the lower of the two. If the appraisal comes in below the price, the shortfall is yours to cover.
- Application timing decides which lenders are still an option. Most want a complete file about three months before closing. The earlier the application, the more lenders will look at it.
- The gap can be covered more than one way. A different lender, a co-signer, or equity in another property. Which one fits depends on your file, and that is a conversation, not a calculator.