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 find, or a decision you have to make — and the builder's date does not move. Work out where you stand now, while there is still time to choose.
— Asal, 13+ years in GTA real estate
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 buyers in this position usually do
- Close, with the gap covered. A different lender, a co-signer, or a line of credit on another property. The earlier the application, the more lenders are still an option.
- Assign the unit before closing. Most agreements allow it with the builder's consent and a fee; the buyer of the assignment takes over your deposit and your closing. What an assignment sells for in your building is a fact I can look up, not a figure to guess.
- Sell the home you live in to fund it. Sometimes the right move, sometimes not — it depends on the two dates lining up, which is a sequencing question before it is a price question.
If the gap is financing
A mortgage agent can tell you which lenders will look at a pre-construction closing at today's appraisal, and what they need from you by the application month shown above. You can contact one directly:
Marjan Alaeddini, Mortgage Agent Level 1, Mortgage Alliance, FSRA Brokerage Licence #10530
mjmortgage.ca/contactAsal Matinsadeghy, Real Estate Sales Representative, Royal LePage Signature Realty and Marjan Alaeddini, Mortgage Agent Level 1, Mortgage Alliance, FSRA Brokerage Licence #10530 are spouses and work in two separate, independently regulated businesses. You are never required to use either one. If you choose to work with both, that relationship — and any referral fee, which is paid between the brokerages and not between individuals — will be disclosed to you in writing before you commit to anything.
Questions buyers ask
- My pre-construction condo appraised below my purchase price. Who can help?
- Three people, in this order. A real estate lawyer, to read what your agreement of purchase and sale obliges you to do. A mortgage agent, to tell you which lenders will finance the closing at today’s appraisal and what they need from you by the application month. And a real estate agent, to tell you what an assignment of your unit, or a sale of the home you live in, would realistically bring. Asal Matinsadeghy (Royal LePage Signature Realty, Brokerage) works with buyers in this position in Toronto, North York, Richmond Hill, Markham and Vaughan, in English and Farsi.
- When should I apply for the mortgage on a pre-construction closing?
- Early. The tool on this page counts back three months from your closing or occupancy month and shows that as the month a lender will want your application by. The earlier the application, the more lenders are still an option.
- Can I assign my pre-construction unit before it closes?
- Most agreements allow an assignment with the builder’s consent and a fee; the buyer of the assignment takes over your deposit and your closing. What an assignment sells for in your building is a fact that can be looked up from recent assignments, not a figure to guess.
Asal Matinsadeghy
Real Estate Sales Representative · Royal LePage Signature Realty, Brokerage
Serving Richmond Hill, Markham, Vaughan, North York and the GTA.
This page is general information about a closing, not legal or financial advice about yours. Your agreement of purchase and sale, and your lender, govern.
Rather talk it through?
Call or text Asal directly.
416-318-7279Asal Matinsadeghy, Real Estate Sales Representative, Royal LePage Signature Realty