New Builds & Pre-Construction
You signed the agreement two years ago. The mortgage gets decided this year. That gap is where almost every new-build problem lives.
Nothing was guaranteed when you signed. The lender underwrites the file that exists at closing — today’s income, today’s credit, today’s debts, today’s rules, and today’s appraised value. Meanwhile the closing costs on a new build include a set that resale buyers never see. Both problems are entirely manageable with six months’ notice, and expensive with two weeks’.
The answers in this centre
- I bought a builder home two years ago. What if I don’t qualify now?
- The builder deposit is paid. What else do I need before closing?
The two things to do early
Have your lawyer summarise the cost clauses in plain numbers. The cap on development charges, whether there’s an interim occupancy period and what it costs, how HST is treated. That’s an hour of their time and it removes most of the unpleasant surprises.
Have the financing reviewed before the builder’s package arrives, not after. If your position has changed since you signed — and over a two-year build something usually has — you want to know while you still have a choice of solutions.
One advantage worth knowing
New-build purchasers can access a 30-year amortisation on an insured mortgage, alongside first-time buyers. It lowers the monthly payment and the qualifying ratio, at the cost of more interest over the life of the mortgage. Occasionally it’s the whole difference between closing and not.
What to do next
Send me your agreement, your firm closing date and your current position. We’ll find out today whether this is straightforward or needs a plan — and if it needs a plan, you’ll have time to pick the best one rather than the only one left.
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General information about Ontario mortgages — not financial, legal or mortgage advice. What your agreement of purchase and sale actually requires is a matter for your real estate lawyer. Insured mortgage rules stated as at August 2026 and can change.