Presale Property Mortgages

Buying a new build property as an investment can offer fantastic returns if you finance it correctly.

Investing in a newly built property comes with a lot of perks.

In an already profitable market, investing in new build properties can potentially offer exceptional returns for investors who are able to hold out for construction to finish. There are so many success stories around new build investors making vast sums of money with rising house prices, and this is making investments in new properties very attractive to homeowners, as well as traditional investors.

 

As well as coming with fantastic earning potential, newly built properties also come with a home warranty. You can’t buy that peace-of-mind with a resale property.

 

Straightforward, hassle-free new build financing.

Buying a new build property can be stressful, particularly if you are a first-time buyer.

 

At Thrive Mortgage Co, we’re here to ensure that you can maximize your earning potential by investing smartly in real estate.

 

We endeavour to offer you the best advice related to financing your new build property. Our presale mortgage experts will work with you to make sure you understand all of the options available to you and help you choose the best one for your circumstances.

 

And unlike banks, we are impartial and do not try to sell products to you that aren’t necessarily in your best interests.

 

Click here begin, or see below for our guide to new build financing.


Presale Property Financing Guide / FAQ:

  • Where can I find out about available units in new developments?

    Look no further. We have relationships with builders and can ensure that you have access to units and that assignments are on offer.

  • What’s an assignment?

    An assignment gives you the power to transfer your purchase to a third party before construction is completed.

     

    Not all builders will offer assignments and, typically, there will be a fee associated with it.

     

    For example - You buy a new build property in May 2020, expected to be completed in 2023, for $500,000. Two years later, in 2023, the property value is now $650,000. Rather than waiting for construction to be completed, closing the sale, and selling the property (with all of the buying and selling fees), you could assign before completion of the $500,000 sale for an assignment premium of $150,000 to the new buyer.


  • The property I’ve purchased will be completed in two years, when do I need a mortgage?

    It may be that the builder needs confirmation of mortgage approval. This is something that we are able to complete and provide on your behalf. 

     

    As with any mortgage, this will depend upon credit checks and confirmation of income/expenses.


  • At what point should I get pre-approval?

    As with a standard house sale, you should get pre-approval before you start viewing any potential properties.


  • Am I able to have a rate locked in so far in advance?

    Yes. The builder will typically have ‘on-site’ finance options with a major bank available. However, the rates will likely include a 1-2% premium, and would only be worthwhile if market rates were to increase substantially before closing. In our experience, clients very rarely opt to lock in the on-site rate available through the builder.

     

    Instead of this, we would seek to lock in a rate 120 days before closing. At this time, we’ll discuss all of the available mortgage options with you to make sure you get the mortgage best suited to your circumstances.


  • What if there is a delay in construction?

    It is relatively common for closing dates to be delayed, but there’s no need to worry.

     

    Just let us know if there are any changes to your closing date and we’ll ensure your approval is extended and rate held. 


  • Do I need an appraisal for a new build home?

    Unlike a traditional sale, your home is brand new, but lenders will still require an appraisal to mitigate their own risk and to confirm that the construction if fully complete and is ready for occupancy.

     

    The cost for this is approximately $350. With a down payment of less than 20%, this will be covered by CMHC, but at 20% or more, a full appraisal will usually be required.


  • Do I need to provide a deposit for a new build purchase?

    Yes. The amount you will need to provide will differ for each development but will generally be between 10-20% of the sale price.

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