22 Aug, 2023
Process of Getting a Mortgage for a Pre-construction Property in Toronto

Buying a pre-construction property in Toronto offers several advantages, such as the opportunity to customize your unit and secure additional time to gather the necessary deposit and down payment. However, the process of acquiring a Mortgage for a Pre-construction Property differs significantly from purchasing a resale property. In this guide, we will take you through the essential steps involved in acquiring pre-construction properties in Toronto.

1-Financial Preparedness

Securing a Mortgage for a Pre-construction Property requires a substantial deposit, typically ranging from 15% to 25% of the total purchase price. However, buyers don’t need to have the entire deposit amount ready at once, as it can be paid in installments.

The specific frequency and amounts of these deposit installments depend on the developer’s policies and the construction progress. Buying early may provide buyers with several years to accumulate the entire deposit amount.

2-Choose Your Desired Floor Plan

To access the best floor plan options, it is crucial to get involved in the pre-construction project as close to the launch date as possible. Working with an agent who has VIP access to projects allows you to choose from a wider range of layouts.

Submitting your top three unit choices and preferred building levels in a worksheet is the next step. However, it is important to note that there is no guarantee that your preferences will be granted, as a worksheet is merely a request for a specific layout.

3-Agreement Signing

Once your worksheet is accepted, the developer will contact your agent to proceed with the Agreement of Purchase and Sale. At this stage, buyers are required to present identification and payment, such as a driver’s license or passport, social security number, and post-dated cheques.

4-Construction Phase

The construction phase is the longest part of the pre-construction property buying process. Condos, for example, may take years to break ground and be completed. Delays are not uncommon for various reasons. Buyers should be prepared for potential extensions of timelines and remain patient during this phase.

Construction Phase

5-Builder Updates and Construction Progress

Throughout the construction phase, the developer will provide periodic updates on the progress of the project. As the construction moves forward, you will receive information on significant milestones, completion timelines, and any relevant changes. Staying informed about the progress is essential to plan for your future occupancy.

6-Preparing for Closing

As the completion date approaches, you will need to prepare for the closing process. This involves ensuring all necessary paperwork and documentation are in order, such as proof of financing, identification, and any required certifications.

7-Final Inspection

Before taking possession of your pre-construction property, you will have the opportunity for a final inspection. During this inspection, you can identify any deficiencies or issues with the unit’s construction and finishing. The developer will address these concerns before handing over the property to you.

8-Interim Occupancy

During the interim occupancy period, buyers take possession of their units before the building is officially registered. Ownership remains with the developer until registration. This period is usually associated with condo-type developments.

Throughout this period, purchasers are required to settle occupancy fees, encompassing estimated monthly maintenance charges, property taxes, and interest on the outstanding balance of the purchase amount. It is essential to understand that these payments are not applied towards the mortgage.

9-Building Registration and Full Ownership

After the development reaches a significant occupancy level and fulfills the necessary requirements, the building (or development) will be registered. It is during this period that you must arrange your mortgage for the Final Closing Date. This step completes the transfer of ownership to you, officially making you the proprietor of your pre-construction property.

At this point, your mortgage payments will begin, and you can enjoy the benefits of full homeownership.


Getting a Mortgage for a Pre-construction Property in Toronto can be a rewarding experience, offering customization options and potential savings. However, it requires careful planning, understanding the process, and collaborating with experienced professionals like Orion Financials to ensure a smooth and successful transaction. With this step-by-step guide, prospective buyers can navigate the complexities of pre-construction property purchases with confidence.

If you are considering purchasing a pre-construction property in Toronto, look no further than Orion Financial. From financing to closing, our team is here to guide you through the entire process. Contact us today to get started on your path to homeownership!

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