If you're considering purchasing a property as a presale in a new development, there are several factors to consider, especially regarding mortgage financing options unique for this type of property purchase:
Early Approval
Obtaining an unconditional approval 2 to 3 years prior to the presale closing date is crucial (although this is strongly recommended, it is frequently something purchasers don’t choose to do).
"The Lift" Financing
If your presale contract allows for an assignment to another buyer, financing for something called “the lift” may be available. The lift refers to the increase in the value of the property since the contract was signed. Note that only a select number of lenders will consider financing the lift value.
Post-Contract Financing
If you purchased your presale without obtaining an unconditional mortgage approval from a bank at the time you sign the real estate contract, you can still apply for financing with a mortgage broker up to six months prior to the estimated completion date.
Last-Minute Solutions
If your bank can’t approve your presale financing and the completion date is nearing, a mortgage broker can help arrange alternative options for completion.
For more details, please book an appointment with Paul by clicking here.
