Your Presale Is Almost Ready: A Mortgage Checklist Before Completion
You signed the contract, paid the deposit, and waited through construction updates. Now the building is nearly ready, and completion is becoming real.
This is a good time to revisit the mortgage, even if you discussed financing when you first bought.
A presale mortgage review should confirm your current qualification, the lender’s approval of the completed property, any rate-hold expiry, and the money needed to close. An earlier pre-approval should not be treated as an unconditional promise to fund at completion.
1. Recheck the Approval You Actually Have
Find the original mortgage paperwork and ask what it covers.
Is it a pre-approval, a rate hold, or a commitment with conditions? When does it expire? What still needs to happen before funds can be released?
The Financial Consumer Agency of Canada explains that a pre-approval does not guarantee you will receive a mortgage. Final approval also depends on the property and other application details.
A Surrey condo bought several years before completion may need a very different financing conversation today.
2. Update the Parts of Your Life That Changed
Let your mortgage professional know about a new job, a move into self-employment, parental leave, new debts, or changes to the borrowers on the application.
Also flag changes in the down payment, including money moved between accounts or funds expected from selling another property.
This is about getting a complete picture early. A change may be manageable, but it is harder to address when everyone is working toward an imminent completion date.
3. Prepare for the Property Valuation
BCFSA warns that a presale unit’s appraised value can fall below the contracted purchase price at completion. That may reduce available financing and leave the buyer needing additional cash.
For a simplified example, assume a purchase price of $700,000 and an intended conventional mortgage of $560,000.
If the lender accepts a value of $660,000 and will lend 80% of that value, the mortgage would be $528,000. The buyer would need $32,000 more toward the purchase price.
This example excludes closing costs and insurance premiums. It is a financing illustration, not a prediction about your property’s value.
BCFSA’s consumer guide to presale purchases explains this risk in more detail.
4. Request an Updated Closing-Funds Estimate
Your deposit is part of the purchase funding, but it is not the entire closing budget.
Ask your lawyer or notary for an estimate addressing:
- The remaining purchase funds.
- Applicable taxes and rebates.
- Adjustments.
- Legal expenses.
- Other contract-specific charges.
Do not assume a rebate applies or is available as cash on completion.
My closing-process guide can help you understand how the final steps fit together.
5. Keep the Timeline Visible
Share developer notices and amendments promptly with your mortgage and legal professionals.
Ask how much notice the contract provides and build a checklist around the actual dates rather than an informal estimate from months earlier.
Construction delays can affect both your financing arrangements and your moving plans, so keep everyone working from the same information.
Frequently Asked Questions
Will the developer automatically extend completion if financing is delayed?
Do not assume that. Have your lawyer review the contract and advise you on your obligations and any requested extension.
What if I think I cannot complete?
Tell your mortgage professional promptly and seek legal advice. Waiting reduces the time available to evaluate your options.
Let’s Get the Financing Ready Before the Notice Arrives
If your presale is approaching completion in Surrey, Langley, or elsewhere in the Fraser Valley, connect early. I would be happy to review the mortgage details and give you a clear list of what still needs to be done.
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