Fast Facts: Pre-Construction Financing

Buying a pre-construction home comes with a financing process that’s slightly different from purchasing a resale property. This Fast Facts section answers the most common questions  about deposits, mortgage approvals, timelines, and what to expect between signing and closing. Use these quick answers to better understand how pre-construction financing works and to help you prepare for each step of the home-buying journey.

  • How much is the deposit on a pre-construction home?

    Deposit requirements vary based on the purchase price and mortgage guidelines. Mikmada Homes establishes the required deposit amount for each home type, with the remaining balance payable to the lender at the time of closing.

  • What is a typical deposit schedule?

    Deposit schedules are determined by Mikmada Homes and are typically spread over several months, depending on the anticipated closing date of the home.

  • Does the deposit paid to Mikmada Homes count toward the total required down payment?

    Yes. All deposits paid to Mikmada Homes are applied toward the total deposit required.

  • When is mortgage approval required for a pre-construction home?

    A current mortgage pre-approval is required within 30 days of purchase at Mikmada Homes, depending on anticipated closing date of home. Final mortgage arrangements are completed directly between purchaser and lender prior to closing.

  • Can upgrades be added to the price of the home?

    Yes. The cost of approved upgrades can be added to the total purchase price of the home.*

    *Exceptions may apply.


  • Are there taxes on upgrades?

    Yes. All applicable provincial and federal taxes will be applied to purchased upgrades.

  • What are the First-Time Home Buyers Rebates in Ontario?

    First-time home buyers (FTHB) in Ontario may be eligible for GST/HST rebates on newly built homes, which can help reduce the overall purchase cost, subject to government eligibility requirements. Qualifying buyers may also receive a land transfer tax rebate.

  • What are closing costs?

    Purchasers should budget for standard closing costs, which may include land transfer taxes, development charges (if applicable), legal fees, etc. These costs are itemized in the Agreement of Purchase and Sale. Eligible purchasers may qualify for GST/HST rebates.

  • What happens if the price of the purchased home decreases?

    Mikmada Homes offers price protection. If the base price of the exact home purchased is reduced prior to closing, the difference will be credited back to the purchaser at closing.*

    *Exceptions may apply.