Buying from a Builder
The VIP mortgage experience for pre-construction homes
Buying a brand-new home from a builder comes with its own unique process, timelines, and mortgage considerations. At Better Mortgage Select, we specialize in navigating this space with precision, insight, and what we proudly call red carpet service—ensuring you’re informed, protected, and fully supported from day one.
Whether you’re buying a detached home, townhome, or condo from a builder, we’ll guide you through every step, offering expert insight and customized mortgage solutions built around your timeline and goals.
Two paths: Pre-construction mortgage options
When buying from a builder, there are typically two ways to handle the mortgage approval process:
1. Upfront approval
Valid for up to 18 months
Through select institutional lenders that Better Mortgage Select has access to, you may qualify for a fully adjudicated and approved mortgage up to 18 months in advance of the closing date.
What this means:
- Your credit, income, and financials are fully reviewed upfront
- Once approved, the lender will not re-check your income, credit, or documents before closing (as long as the build is completed within 18 months)
- Your interest rate is held at approval
- If rates increase, you keep your lower contract rate
- If rates drop, you benefit from an automatic float-down to market rates
This product is ideal for buyers who value certainty and stability—especially in a fluctuating rate environment. It allows you to “lock in” your approval and focus on your build without worrying about what interest rates or lending rules will look like months later.
Important:
If the builder delays past 18 months, the mortgage approval will expire, and a new application and full requalification will be required. That’s why it’s critical to work with a brokerage like BM Select that can build a plan around your builder’s projected timelines and follow up accordingly
2. Traditional approval
Closer to occupancy or closing
The other option is to wait until the builder sends out final closing instructions, typically within 30–120 days of the possession date, and apply for a mortgage then. While this is the most common route, it comes with added uncertainty:
- You may be subject to higher rates or stricter lending guidelines
- Your credit, income, and overall finances must still meet current lender criteria
- There’s less room for error, especially if closing timelines shift unexpectedly
Builder closing costs you need to know about
Unlike a traditional resale purchase, buying a pre-construction home comes with additional closing costs that are not included in the purchase price. These often include:
- Development levies and utility connection fees
- Tarion Warranty enrollment
- Meter installation fees
- HST on new builds (particularly relevant for investment properties)
- Legal review of builder adjustments
- Occupancy fees (for condos—more below)
Your BM Select Mortgage Specialist will review your Agreement of Purchase and Sale in detail to flag these items and ensure your lawyer and lender are all aligned ahead of closing.
Special considerations for buying a condo
When buying a new build condo, the process includes two separate phases:
Occupancy date
This is the date you get the keys and can move in—but the building isn’t officially registered yet, so your mortgage doesn’t start. During this phase, you pay the builder monthly occupancy fees, which usually cover interest on the unpaid purchase price, estimated taxes, and maintenance fees.
This occupancy phase can last several months to a few years, depending on the project.
Occupancy date
This is the date you get the keys and can move in—but the building isn’t officially registered yet, so your mortgage doesn’t start. During this phase, you pay the builder monthly occupancy fees, which usually cover interest on the unpaid purchase price, estimated taxes, and maintenance fees.
This occupancy phase can last several months to a few years, depending on the project.
Closing date (Registration)
Only once the building is officially registered with the city can your mortgage be funded and title transferred to your name. At that point:
- Your mortgage officially begins
- Final closing costs are due
- Your occupancy fees stop
The BM Select team tracks these important milestones and works closely with your lender and lawyer to ensure the transition is seamless.
Why BM Select?
A builder mortgage process that works
At Better Mortgage Select, we bring decades of experience helping clients navigate builder deals—whether it’s a new condo in Toronto or a single-family home in Waterloo. Here’s what sets our service apart:
- Access to exclusive long-term builder mortgage approvals (up to 18 months)
- Full deal planning from the day you sign your APS
- Dedicated follow-ups to manage key builder deadlines and extensions
- Detailed review of your purchase agreement
- Direct communication with your lawyer and lender to eliminate surprises
- Education on every step, from builder levies to occupancy fees
Timing is everything—send us your agreement early
We can’t emphasize this enough: the earlier we see your builder purchase agreement, the better. Once you’ve signed the APS (Agreement of Purchase and Sale), send it to your BM Select Mortgage Specialist immediately. This allows us to:
Review important dates and terms
Build a mortgage plan around your build timeline
Flag lender deadlines or required clauses
Avoid unnecessary stress or rushed decisions down the road
Ready to start your builder mortgage game plan?
Click below to connect with a BM Select Mortgage Specialist today and get your custom pre-construction mortgage roadmap underway.
The BM Select experience: VIP-level service for builder clients
From your first conversation to final key handoff, we offer white-glove service and expert guidance tailored to the builder process. We’ve built one of Canada’s most recognized mortgage operations around serving high-net-worth clients, real estate investors, and families looking for clarity and confidence in their financing.
Let us help you make your builder purchase smooth, strategic, and stress-free.