New Construction & Pre-Construction

Yes, but the financing process differs because closing may be months or years away. A builder's mortgage pre-approval is not a guarantee that you will qualify at final closing.

You may need an initial approval for the builder, but you should also review your mortgage position again well before occupancy or final closing. Income, debts, credit, interest rates and lender policies can all change during a long construction period.

The lender may finance based on the appraised value under its rules. If the appraised value is lower than expected, you may need additional funds or a different financing solution.

Eligible first-time buyers of new or substantially renovated homes may qualify for full federal GST relief up to $1 million, with reduced relief below $1.5 million. Ontario has provincial first-time buyer relief and separate temporary enhanced new-housing measures. Eligibility, agreement dates, occupancy and application rules differ. Have your lawyer or tax adviser verify the applicable programs with CRA before treating a rebate as available closing funds.

Interim occupancy can occur when you can move into a new condominium before legal title transfers. During this period, you may pay occupancy fees rather than regular mortgage payments; your lawyer and builder documents should explain the exact charges and timing.