NEW BUILD MORTGAGES IN MISSISSAUGA, ON
Mortgage Solutions for New Construction and Pre-Construction Homes
Buying a newly built home can be exciting, but arranging the mortgage can be different from financing an existing property. Construction timelines can change, closing may be months or even years away, and the mortgage you qualify for when you sign your purchase agreement may not be the mortgage available when your home is ready.
Dove Mortgages helps new-build buyers plan ahead, understand their financing options and compare mortgage products from available lenders.
New Build Mortgage Broker: Plan Your Financing Before Closing Day
Buying a new home directly from a builder involves more than choosing a floor plan and paying a deposit.
Your mortgage financing needs to work with the builder’s timeline, your closing date and your financial circumstances when the property is ready.
A new build mortgage broker can help you understand how much you may qualify for, what documents you’ll need and which mortgage options may be appropriate for your purchase.
Starting early can also help you avoid discovering financing problems shortly before closing.
Mortgage pre-approvals can help establish a home-buying budget and may hold an interest rate for a specified period, but they do not guarantee final mortgage approval and remain valid only for a defined period.
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Buying a New Build? Your Mortgage Requires a Different Strategy.
New-build purchases can have a much longer timeline than resale transactions.
You may sign an Agreement of Purchase and Sale long before the property is ready. During that time, your income, debts, credit, interest rates and lender requirements can change.
That’s why your mortgage strategy should consider both where you are financially today and what needs to happen when your home is actually ready to close.
Common New Build Mortgage Challenges
1
A mortgage approval or rate hold generally doesn’t last indefinitely.
If you’re purchasing a pre-construction property well before completion, the mortgage will normally need to be reviewed again closer to closing.
We help you understand the financing timeline and prepare for the mortgage application.
2
A new-build purchase may be completed long after you sign the original agreement.
Mortgage rates available when you purchase the property may therefore be different from the rates available when you close.
Rather than relying on an old estimate, we can review the market as closing approaches and compare available mortgage products.
3
Construction schedules can change.
Ontario’s new-home framework includes rules addressing closing and occupancy dates, including circumstances involving delayed closings or occupancy. Buyers should review the Addendum attached to their purchase agreement to understand applicable dates and possible delays.
4
A lot can happen between signing your purchase agreement and receiving the keys.
You might:
- Change jobs
- Take on a car loan
- Increase credit card balances
- Pay down debt
- Receive a raise
These changes can affect the mortgage application.
5
Builder upgrades, deposits, closing expenses and changes in your own finances can alter how much money you’ll need at closing.
We help you calculate your financing needs based on the actual purchase rather than relying only on the numbers from when you originally signed the agreement.
The Solution: New Build Financing Planned Around Your Closing
At Dove Mortgages, we help buyers prepare for the entire new-build financing process.
We review your purchase, income, down payment, debts and expected closing timeline.
Then we compare suitable mortgage options and explain what needs to happen before closing.
Working with a mortgage broker new build buyers can rely on means having someone who understands that financing a property under construction may require more planning than purchasing an already completed home.
More Lender Options
Instead of relying only on your current lender, Dove Mortgages compares options from multiple lenders.
Clear Cost Review
We help you understand possible transfer fees, legal costs, and savings before you decide.
Less Paperwork Stress
Our team helps with documents, lender communication, and the transfer process from start to finish.
Learn More About New Builds in Mississauga
New Build Deals: Look Beyond the Advertised Incentive
Builders may advertise promotions or incentives to attract buyers, but a good new build deal should be evaluated based on the complete transaction.
Before deciding whether an offer works for you, consider:
- The total purchase price
- Deposit requirements
- Included features and upgrades
- Upgrade costs
- Expected closing expenses
- Mortgage affordability
- Monthly carrying costs
- The expected closing timeline
- Conditions contained in your purchase agreement
An attractive incentive doesn’t automatically make a property affordable.
Your mortgage should still fit comfortably within your financial plans.
Finding the Best New Build Mortgage Deals
The best new build mortgage deals aren’t necessarily determined by the lowest advertised interest rate.
A mortgage with a competitive rate but restrictive conditions may not be the best choice for your circumstances.
When comparing mortgage options, consider:
Interest Rate
Your mortgage rate directly affects your payment and borrowing cost, so it remains an important part of the comparison.
Mortgage Term
A shorter or longer term can affect your rate, flexibility and how soon you’ll need to renew.
Fixed vs. Variable
Each option behaves differently when interest rates change. The appropriate choice depends on your circumstances, budget and comfort with payment or rate changes.
Prepayment Options
If you expect to make additional payments in the future, understand how much the mortgage allows you to pay ahead without penalty.
Penalties
Understand what could happen if you need to break the mortgage before the end of the term.
Lender Conditions
The mortgage still needs to fit your income, credit, property and overall financial situation.
Pre-Construction Home Mortgages
Buying pre-construction means you’re committing to a property that may not be completed for some time.
Because of the longer timeline, mortgage planning can happen in stages.
When You Purchase
Understand your budget, deposit obligations and expected financing requirements.
During Construction
Keep your financial position in mind.
Taking on significant new debt or making major financial changes before closing can affect a future mortgage application.
As Closing Approaches
Your mortgage application can be updated using your current income, debts, credit, down payment and property information.
Available lenders, rates and mortgage products can then be compared based on the circumstances at that time.
Building Your Own Home?
Financing a home that is being constructed for you can be different from buying a completed builder home.
Depending on the financing program, funds may be advanced as construction progresses rather than as one mortgage advance at the end.
CMHC identifies progress-advance options for certain eligible new-construction financing, meaning funds can be advanced during construction according to the applicable financing structure.
If you’re building rather than purchasing a completed home, let us know at the beginning so we can determine what type of financing you actually require.
How Our New Build Mortgage Process Works
1
Understand Your Purchase
We start by reviewing the property you’re purchasing, expected closing date, purchase price, deposits and your overall financial situation.
If you’re still shopping, we can help establish a realistic financing range before you commit to a property.
2
Review Your Financing Strategy
We’ll look at your income, down payment, debts and credit to understand the mortgage options that may be available.
If your closing is still far away, we’ll also explain what will need to be reviewed again later.
3
Shop the Mortgage Market
As your closing approaches, we’ll compare suitable mortgage products from available lenders.
We’ll help you look beyond the headline interest rate and understand the terms, costs and features that matter.
4
Complete the Application and Prepare for Closing
Once you’ve selected a mortgage option, we’ll help prepare the application, obtain the required documentation and work through the lender’s approval conditions.
We’ll keep you informed throughout the process so you know what is needed before closing.
Documents You May Need for a New Build Mortgage
Mortgage requirements depend on the borrower, property and lender, but documents may include:
- Agreement of Purchase and Sale
- Builder amendments or schedules
- Proof of deposits paid to the builder
- Proof of remaining down payment
- Employment letter
- Recent pay stubs
- Notices of Assessment
- Tax documents
- Bank or investment statements
- Identification
- Property information
- Other documents requested by the lender
Self-employed applicants may require additional income or business documentation.
We’ll provide a document list based on your specific application rather than asking you to guess what the lender needs.
Frequently Asked Questions
What is a new build mortgage?
A new-build mortgage is mortgage financing used to purchase a newly constructed property.
The exact process depends on whether you’re purchasing a completed builder home, buying a pre-construction property or financing a home that is being constructed.
Should I get pre-approved before buying a new build?
Getting pre-approved can help you establish a purchasing budget before committing to a property.
However, a pre-approval isn’t the same as final approval. It is valid for a specified period, and the mortgage may need to be reviewed again if your new home closes much later.
Can I lock in a mortgage rate for a new build?
Some mortgage pre-approvals may hold a specific interest rate for a defined period.
The exact length and conditions depend on the lender and product. If your closing falls outside that period, your financing may need to be reassessed using the mortgage products available closer to closing.
What happens if my new build is delayed?
First, review the notices from your builder and your Agreement of Purchase and Sale.
Ontario new-home purchase agreements can include provisions dealing with closing or occupancy dates and permitted delays. Your real estate lawyer can explain your contractual rights and obligations.
You should also tell your mortgage broker because a changed closing date may affect the timing of your financing.
We can review the numbers before submitting your application and explain which options may be available.
Do I need a mortgage when I pay my builder deposits?
Builder deposits and final mortgage financing are separate parts of the purchase.
Your Agreement of Purchase and Sale establishes the deposit schedule. Your mortgage generally forms part of the funds required to complete the transaction at closing.
Make sure you understand where your deposit funds will come from before signing the agreement.
What is interim occupancy on a new condo?
Interim occupancy can occur when you’re allowed to move into a newly built condominium before the condominium is registered and your final purchase closes.
During this stage, you don’t yet own the unit and occupancy fees may apply.
Your lawyer can explain the legal and financial implications of interim occupancy.
Is the lowest rate always the best new build mortgage deal?
Not necessarily.
The interest rate is important, but you should also review the mortgage term, penalties, prepayment privileges, payment flexibility and other conditions.
The best new build mortgage deals are the options that provide competitive financing while also fitting your financial circumstances and plans.
Why use a mortgage broker for a new build?
A mortgage broker can help you prepare for the financing timeline, compare suitable lenders and mortgage products, organize your application and explain the conditions attached to the mortgage.
This can be especially useful when your closing date is well after the date you purchase the property.
