Buying a new-construction home

Congratulations, you're buying a newly built house or condo! But how do you arrange for a mortgage when it won't even be built for months or years?

Like a regular home purchase, there will be a down payment from your own funds + the mortgage on the remaining amount. But there are differences in timing and some of the requirements:

• The down payment is split into a series of installments due over the course of construction, often up to 20% of the total price

• A "pre-approval letter" from a mortgage brokerage or bank is needed for anyone buying more than 120 days from the occupancy date (to show you can afford the required mortgage)

• Typically, you won't be able to lock in your interest rate until you are within the 120-day window.

When you do get to that point, you'll go through the regular mortgage approval process. It may seem like a lot of steps, but we're here to help guide you through it.