In cities such as Vancouver where there is lots of new construction, home buyers have the choice between an existing home or one thatâs still under development (a presale). Often presales are available before construction starts because the developer needs a certain number of sales to start the permitting process. This means there can be a significant time lag between committing to buying your home and actually moving in.
From a financial point of view, presales come with pros and cons, as well as some special considerations for mortgage financing.
Ultimately, it's up to you to decide if you have the patience and flexibility to purchase a presale or if you prefer the more streamlined process of buying an existing home taking out the guesswork of rates and future qualification. Discuss these options with your mortgage broker and Real Estate Agent to determine which one is right for you. If you chose the presale route, once the project is near completion, you can then shop for the best mortgage using a mortgage professional. They can usually hold the rate for 90 to 120 days, although some lenders will allow up to 180 days for new construction.