Mortgage for Pre-Construction
Financing a pre-construction home is a little different from a resale purchase because you close years after you sign.
On this page
How it works
- You provide a pre-approval when you buy, but the actual mortgage is finalized near final closing.
- Lenders re-qualify you at closing based on your income, credit and current rates — so keep your finances stable.
- Some lenders offer extended rate holds for new construction.
- Your mortgage starts at final closing, not at interim occupancy.
Estimate your payment now
Use our free Ontario mortgage calculator to estimate your payment, down payment, CMHC insurance and total cash to close — then we'll refer you to a trusted mortgage broker for a real pre-approval.
Frequently Asked Questions
When do my mortgage payments start?
At final closing — when title transfers to you and the mortgage funds. Before that (for condos) you pay an interim occupancy fee, which is not a mortgage payment.
What if interest rates rise before closing?
You'll close at the rate available then (unless you have a rate hold), and the lender re-qualifies you. That's why we recommend a pre-approval up front and re-confirming financing 6–9 months before closing.