How to Finance a Pre-Construction Home in Ontario

A Practical Guide for Homebuyers

Buying a pre-construction home is an exciting journey, especially when you're planning for your future in a growing community like Guelph or surrounding areas. At Mikmada Homes, we understand that financing a new build is one of the biggest steps in the process. Whether you’re a first-time buyer or a growing family, here’s what you need to know to finance a pre-construction home in Ontario with confidence.

Understand the Deposit Structure

Unlike resale homes, pre-construction properties require a deposit paid in stages. This deposit can range from 5% to 20% of the purchase price usually, spread out over several months. For example, you might pay 5% on signing, another 5% in 30 days, and the rest over time. This gives buyers a chance to plan and save accordingly.

Get Pre-Approved for a Mortgage

Before signing a purchase agreement, it’s wise to get pre-approved for a mortgage. This gives you a clear picture of your budget and helps lock in an interest rate for when the home is completed. Many lenders offer extended rate holds specifically for new construction homes.

Budget for Closing Costs

Closing costs for pre-construction homes can be slightly higher than resale homes. Be sure to budget for land transfer taxes, development charges, legal fees, and HST (with rebates available for eligible buyers).

Work with Professionals Who Know Pre-Construction

Choose a mortgage broker and lawyer familiar with pre-construction purchases. They can guide you through builder agreements, explain timelines, and make sure you're fully prepared when it’s time to take possession.

At Mikmada Homes, we’re here to support you through every step, from your first deposit to move-in day. Our thoughtfully designed homes are built with your future in mind. Discover where your story begins.