Presale Mortgage Guide

A guide to help you understand the process of getting a mortgage for a presale home. If you're ready for personalized advice, go ahead and click "get started" below.

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Find financing for your presale home

There’s something special about presale homes—homes you buy before they’re fully built. In many cases you get to see the building take shape. You can tour a display home and inspect the specs—the flooring, the kitchen, the finishes—and often have a chance to work directly with the builder to tailor the home to your unique tastes.

In a nutshell, you get it brand new. That’s the main difference between a presale and buying an existing home.

Extensive experience with presales in the Fraser Valley

When it comes to mortgages, buying a presale isn’t radically different, but there are a few nuances to consider. The main thing is that you’re agreeing to buy a home many months before it’s complete, and well before you can move in. You’ll want to get pre-approved for a mortgage well in advance as well, to know how much you can afford and to secure the sale. That’s where we come in.

Robinson Mortgage Group has helped countless residents of British Columbia find the perfect presale unit and secure the funding they need to call it home. Based in the Fraser Valley, we’ve seen the number of presale purchase opportunities rise rapidly over the past several years in communities like Abbotsford, Chilliwack and Mission. And we have streamlined our mortgage solutions to help you secure the financing efficiently and effectively. Here are a few of the most common questions we get. Got another query? Reach out anytime.

Presale Mortgage Guide FAQ

How the presale mortgage process work?

We start now. Before you find the presale home you want to buy, you need to know how much mortgage you qualify for. Developers may ask for evidence of financing pre-approval before you can purchase. Start by filling out our online application. We’ll work through the approval process and source the best possible mortgage options for you. After providing some supporting documentation, we can confirm your pre-approval. Then you’re free to buy the presale of your dreams.

We’ll continue to review the mortgage market as your home is being built, and around 120 days before your building is complete, we’ll lock in the best possible rate available at that time, based on your updated credit score and income information.
When do I start paying my mortgage?

Your mortgage doesn’t start until your presale home is built. That’s when you start making payments.
How much do I need for deposit?

Deposit timing for presales is very different from resale purchases, and varies by development. In a typical scenario, you might provide an initial deposit of $1,000 when you sign the offer, then 10 percent of the total purchase price after seven days, then another 5 to 10 percent over the next 18 months, as the property is built. Again, this varies by developer and project, but that should give you a sense of how the deposit process might work.
Is it possible to get better access to units on new development sites? They seem to sell out fast.

Yes. Robinson Mortgage Group can connect you with builders and developers to get prime access to great units.
What is an assignment?

An assignment provides you with the right to transfer your purchase and sale agreement to another party. This generally comes with a fee, which can vary significantly. And not all builders allow assignments.

Here’s an example: You purchase a presale home for $450,000, for a condo to be completed in three years, Two years later, your condo has been valued at $550,000. Instead of waiting for the closing date in one year, and incurring the related closing costs plus realtor fees to sell the unit when it’s complete, you could assign your purchase agreement of $450,000 to another buyer. It might come with an assignment premium of $100,000.
What happens if the closing date is delayed?

Keep us informed about changing in your closing date, and we’ll update and extend your mortgage approval and rate hold information.
Why does my brand new home need to be appraised?

Just like any home purchase, lenders need to make sure the financing they are providing is based on the current value of the property. Developers set an initial price, but things change in the broader economy and local real estate market during the 12 to 24 months after you agree to buy and before you lock in your mortgage.
How much does an appraisal cost?

Around $350.

Hear from a few of our happy customers

Val Meyer

Matt was wonderful when we were buying and selling our house. As soon as we had a place we were considering, he would crunch the numbers for us and see if it was doable or not. Hes very quick in response time and easy to communicate with. This is our second time using him and we will continue to use his services in the future. Thanks Matt!

Nico Abais

As a first-time home buyer, my first resolve was to search for information online and sure enough I find bits of information all over the place. Then we were introduced to Matt. He will answer all your questions in a timely manner and guide you with the whole process and expectations. Matt will work his way to get you the best rate!

Tash Stobbart

Robinson Mortgage were very helpful in obtaining our first mortgage. We had difficulties dealing with banks because my husband is a contractor and has multiple T4’s and his income tax is complicated but Matt and his team made it easy. I would highly recommend to anyone looking for a mortgage and in fact I have sent friends his way.

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Expert mortgage advice is just a phone call away

Got questions? We’re happy to help. Reach out anytime or schedule a time that works for you. And we’ll help you get closer to your dream home.

Meet Matt

Robinson Mortgage is owned and operated by Matt Robinson, a professional mortgage broker based in British Columbia’s beautiful Fraser Valley. Matt has helped countless people in Abbotsford, Chilliwack, Mission and beyond navigate the process of finding financing for their home. Whether you’re buying your first place, consolidating your mortgage, or getting ready for a future purchase, Matt is your man with a mortgage plan.
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