100% Pre-construction Financing
Experience the power of 100% pre-construction financing and unlock the potential to secure your dream property in the vibrant real estate market of the Greater Toronto Area. Whether you’re looking for new condos for sale, luxury waterfront properties, mid-rise high-rise townhomes, or more, our expert guidance and support can help you confidently navigate the mortgage qualification process for 100% pre-construction financing.
Explore our website for various pre-construction properties across diverse regions, including Toronto, North York, Thornhill, Vaughan, Richmond Hill, Aurora, and beyond. Stay ahead in your real estate journey with access to VIP Platinum sales, real estate investment tools, developers’ invitation-only access, and featured platinum projects.
Maximize your investment potential and confidently secure your dream home in new developments. So make sure to take advantage of it. Dive into the world of 100% pre-construction financing today!
Experience the power of 100% pre-construction financing and unlock the potential to secure your dream property in the vibrant real estate market of the Greater Toronto Area. Whether you’re looking for new condos for sale, luxury waterfront properties, mid-rise high-rise townhomes, or more, our expert guidance and support can help you confidently navigate the mortgage qualification process for 100% pre-construction financing.
Explore our website for various pre-construction properties across diverse regions, including Toronto, North York, Thornhill, Vaughan, Richmond Hill, Aurora, and beyond. Stay ahead in your real estate journey with access to VIP Platinum sales, real estate investment tools, developers’ invitation-only access, and featured platinum projects.
Maximize your investment potential and confidently secure your dream home in new developments. So make sure to take advantage of it. Dive into the world of 100% pre-construction financing today!
Up to 100% Financing to Close On Your New Home
Flexible Financing Solutions for New Developments
100% pre-construction financing, provided by select federally regulated institutions, enables investors to leverage assets and grow their investment portfolio. Based on current property value, this secure financing option allows deposit recovery and reinvestment in other projects or renovations. Offering fewer closing costs, it is a more cost-effective choice than second mortgages. However, only specific banks and mortgage brokers, such as our partner, grant access to this financing option.
What Is 100% Pre-construction Financing? And Who Can Benefit From It?
100% preconstruction financing is a unique financial tool offered by select federally regulated institutions in Canada that allow investors to maximize their wealth by fully leveraging their assets. This type of financing is not a gimmick or a shady lending scheme but is provided by reputable lenders, such as those in Ontario.
The primary purpose of 100% preconstruction financing is to offer a means for investors to get their deposits back on their initial preconstruction property investment. This is achieved by basing the financing on the property’s current value rather than its purchase price. For example, if an investor purchased a property in 2019 for $600,000 with a $70,000 deposit and the property’s value increased to $900,000 by 2021, the investor could secure financing based on the current property value of $900,000 on the closing date. Therefore, allowing the investor to recoup their initial deposit and either reinvest in other preconstruction properties or use the funds to renovate and further increase the value of the existing property.
One major benefit of 100% preconstruction financing for investors is the ability to recycle their funds into other preconstruction projects on the same day when they close on the property, effectively multiplying their investment potential. This financial strategy enables investors to increase their wealth by continuously investing in new projects without going through two closings.
Another advantage of this financing option is generating income from private lending through a mortgage administrator. With their deposits returned, investors can choose to lend money to others, enabling them to earn interest on their funds and create an additional income stream.
How Does 100% Pre-construction Financing Work?
100% pre-construction financing works by basing the loan amount on the property’s current value rather than the purchase price on the Agreement of Purchase and Sale. This approach enables investors to access a higher loan amount to recoup their initial deposit, reinvest in other pre-construction properties, or renovate their existing property to increase its value.
Making full deposit payments according to the builder’s Deposit Schedule is crucial in 100% pre-construction financing. Investors must fulfill the builder’s deposit requirements to qualify for this bank’s 100% pre-construction financing product. In some cases, private lenders may offer alternative financing up to 80% of the property’s current value instead of the federally regulated bank.
100% pre-construction financing offers several advantages over second mortgages. It allows investors to avoid the additional closing costs of two separate mortgage transactions, saving money on lawyer and broker fees. Furthermore, this financing option simplifies the process by consolidating the loan into a single transaction.
Qualify Based on Current Property Value
Recover Deposit Payments on Closing Day
Two-In-One Mortgage Transaction
Federally Regulated Financial Institution
Why Consider
100% Pre-construction Financing as a Solution?
Considering 100% pre-construction financing benefits homebuyers and investors by enabling them to maximize their investment potential, recycle funds for multiple investments, and generate income through private lending. It also reduces closing costs and fees compared to taking out a second mortgage and offers a safe financing solution through reputable lenders.
Maximize Investment Potential
One of the main reasons to consider 100% pre-construction financing is that it allows investors to maximize their investment potential. By qualifying based on the property’s current value, investors can recover their initial deposit, reinvest in other pre-construction properties, or use the funds to renovate their existing property to increase its value.
Reduced Closing Costs and Fees
100% pre-construction financing reduces closing costs and fees compared to a second mortgage. By consolidating the financing into a single transaction, investors can save on lawyer and broker fees associated with multiple mortgage transactions.
Safe and Reputable Lenders
100% pre-construction financing is a safe and reliable solution, as reputable, federally regulated institutions offer this financing option. This ensures that investors are working with trustworthy lenders and can have confidence in the financing process.
Limited Accessibility
Finally, 100% pre-construction financing is not accessible from every bank or mortgage broker. This exclusivity makes it an attractive option for investors with access to the product, as it provides a competitive advantage over other financing solutions.
Risks to Consider With
100% Pre-construction Financing
Outsourcing the Property and Tenant Management services can be a great way to ensure your properties are well-maintained and your tenants are happy. First, however, it’s essential to consider the risks involved and choose a reputable and experienced property management company to work with. Doing so can minimize these risks and benefit you with well-maintained properties and happy tenants.
Market Fluctuations and Property Value
One of the primary risks associated with 100% pre-construction financing is the unpredictable nature of market fluctuations and the potential impact on property values. Real estate markets can be volatile, with various factors such as economic conditions, interest rates, and supply and demand dynamics influencing property values over time. As such, the risk of market fluctuations should not be overlooked when considering this type of financing.
In the context of 100% pre-construction financing, the financing amount is based on the current property value. If the market experiences a downturn or a period of economic instability, the property’s value might decrease. This decline could negatively affect the financing amount, making it more challenging to secure the desired level of funding. Consequently, the borrower may need to contribute additional funds or seek alternative financing sources to cover the shortfall.
Moreover, a decrease in property value could potentially impact the expected returns on investment. Investors typically rely on appreciation in property value to generate profits from pre-construction projects. A drop in property value due to market fluctuations might result in reduced profit margins, undermining the initial investment strategy and potentially causing financial strain on the investor.
In some cases, a significant market downturn could also lead to delays or cancellations of pre-construction projects, further exacerbating the risks associated with this type of financing. Thus, investors and borrowers should thoroughly assess market conditions and consider potential risks before opting for 100% pre-construction financing. Developing a comprehensive risk management strategy that accounts for possible market fluctuations and includes contingency plans to navigate any unforeseen challenges is crucial.
Limited Availability and Accessibility
A notable risk associated with 100% pre-construction financing is the limited availability and accessibility of this financing product within the broader lending market. Not every bank, credit union, or alternative lender offers 100% pre-construction financing, making it a niche product with potentially fewer options for interested borrowers.
This limited availability may create challenges in securing 100% pre-construction financing, as borrowers may need to search extensively for lenders that offer this product. As a result, obtaining this type of financing could be more time-consuming and cumbersome than conventional financing options if performed without the help of a mortgage broker. Additionally, the limited number of lenders offering this product may lead to less competitive terms and interest rates, potentially increasing the overall cost of financing for borrowers if borrowers do not enlist the help of a mortgage broker to assist with the negotiation.
In conclusion, the limited availability and accessibility of 100% pre-construction financing present a notable risk to potential borrowers if they try to qualify for this product without the help of a mortgage broker. It is essential for those considering this financing option to thoroughly research the market, identify suitable lenders, and consult with experienced mortgage brokers to ensure they fully understand the implications and challenges associated with this financing product.
VIP Platinum
Gain early access to VIP Platinum projects before they become available to the general public.
Protect Your Interests
A real estate agent protects your investment by identifying potential risks and looking out for your best interests during the preconstruction process.
Special Financing
Our mortgage broker partner grants you access to multiple lenders with exclusive and promotional mortgage offers, such as the 100% preconstruction financing.
Frequently Asked Questions
Welcome to the Bridge Financing FAQ section! Here, we address common inquiries and concerns about this short-term loan solution. You’ll find valuable information on the purpose, qualification process, loan terms, alternatives, and potential risks associated with bridge financing. This FAQ section provides insightful guidance and helps you make informed decisions when considering bridge financing in your real estate journey. Keep reading to understand better this versatile financial solution and how it can benefit you as a homebuyer or real estate investor.
100% Pre-construction Financing Questions
Q: Who would benefit from 100% pre-construction financing?
This product is mainly for investors, enabling them to recycle their deposit funds, invest in other pre-construction projects, and turn the recovered deposit into another income-generating asset on the same day as the Closing Date.
Q: Why is this a better approach than registering a second mortgage?
Opting for 100% pre-construction financing reduces closing costs, as there is only one transaction instead of two separate closings for an original and a second mortgage. This saves money on closing costs such as lawyer fees and broker fees.
Q: Is 100% pre-construction financing safe?
Yes, this product is considered safe as it is offered by a bank, not a private lender. It is comparable in safety to products provided by the top five banks in Canada.
Q: Is this product accessible from any banks and mortgage brokers?
No, only some banks or brokers can access this product, as a specific bank and lender offer it. Our mortgage broker partner is an example of a selected few mortgage brokers with access to 100% pre-construction financing and a network of private lenders who can provide up to 80% of a property’s current value.
Q: Can I use 100% pre-construction financing for my primary residence?
While this financing product is primarily targeted at investors, it may also be available for primary residences. However, it’s essential to consult with a mortgage broker or lender to determine if you qualify and if it’s the best option for your situation.
Q: What are the eligibility criteria for 100% pre-construction financing?
Eligibility criteria may vary depending on the lender and your financial circumstances. Typical criteria include a good credit score, stable income, and a satisfactory debt-to-income ratio. It’s advisable to consult with a mortgage broker to understand the specific requirements of your situation.
Q: Are there any additional costs associated with 100% pre-construction financing?
While 100% pre-construction financing helps save on closing costs, there may be other closing costs, such as loan appraisal fees and additional administrative fees. Therefore, discussing these potential costs with your lender or mortgage broker is essential.
Q: How long does the approval process for 100% pre-construction financing take?
The approval process for 100% pre-construction financing may vary depending on the lender, your financial situation, and the complexity of the transaction. It’s crucial to consult with a mortgage broker to understand the timeline for your specific case better.
Q: Can I refinance my existing mortgage with 100% pre-construction financing?
100% pre-construction financing is primarily designed for financing new pre-construction properties. So it’s not applicable for refinancing an existing property. Consult with a mortgage broker or lender to explore your mortgage refinancing options.
Q: What happens if the completion of the pre-construction project is delayed?
The funding from this 100% pre-construction financing takes place on the same day as the Closing Day of the pre-construction project. Therefore, if the completion of the pre-construction project is delayed, the funding from this 100% pre-construction financing lender will also be delayed.
Bridge Financing
Explore the benefits of Bridge Financing for a seamless closing. Learn how this flexible, short-term financing solution can help you secure your dream property, overcome timing challenges, and ensure smooth transactions in your real estate journey. Discover expert insights and guidance on Bridge Financing today!
100% Pre-construction Financing
Discover the advantages of 100% Pre-construction Financing for your new home or property investment. Learn how this innovative financing option enables you to secure your dream home in new developments while maximizing your investment potential. Find expert guidance and support to confidently navigate the mortgage qualification process for 100% pre-construction financing.
Mortgage Pre-approval
Explore the benefits of mortgage pre-approval for a seamless property buying experience. Gain insights into your purchasing power, expedite your property search and strengthen your negotiation position with builders. Let our expert team guide you through the mortgage pre-approval process and help you confidently secure financing for your new home.
Down Payment Assistance Program
Discover our Down Payment Assistance Program, designed to help first-time homebuyers in Canada overcome financial barriers and co-invest in their dream home. Our program offers up to $250,000 in shared equity and supports many locations in the Greater Toronto Area and beyond. Experience a simple process, expert guidance, and flexible co-ownership options. So start your homeownership journey today!
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