If you’re preparing for the occupancy phase of your pre-construction condo, it’s crucial to start mortgage pre-approval 6

 to 12 months in advance. As a licensed mortgage advisor, I recommend paying close attention to these key details:

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🔍 Managing Your Timeline

✅ The Final Closing Date is usually 1 to 2 years after Occupancy.

⚠️ Plan ahead for cross-border fund transfers: Be mindful of the annual foreign exchange limit ($50,000 CAD per person). 

For large down payments, consider splitting transfers across multiple accounts and years.

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📊 Property Value Assessment

▪️ Compare the purchase price vs. current market value, especially if you bought between 2018-2022, when prices were at 

their peak.

▪️ Assess negative equity risks: If the market price is now lower than your contract price, prepare additional backup funds to 

cover the shortfall (recommend setting aside 15-20% as a buffer).

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🏦 Optimizing Your Bank Strategy

⭐ Leverage developer-preferred banks: For example, Tridel partners with TD, and Menkes works with RBC, often offering 

0.15-0.25% lower interest rates.

⭐ Pre-sale mortgage pre-approvals: Many developer-partnered banks offer early-stage mortgage approvals with more 

flexible GDS/TDS ratios, locking in better debt qualification terms.

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💸 Tax Considerations

▪️ Primary residence: Eligible for an automatic HST Rebate (~$24,000).

▪️ Investment property: You’ll need to pay HST upfront, then apply for a rebate 60-90 days post-closing (set aside ~1.5% of 

the purchase price as buffer funds).

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📝 Hidden Costs Checklist

Request written confirmation from the developer for:

▫️ Development Charges Cap (maximum limit on extra fees)

▫️ Education Levy / Parks Levy (municipal development charges)

▫️ Tarion Warranty Fees (new home warranty costs)

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📈 Financial Pre-Screening

1️⃣ Stable Income: Any job changes, business ventures, or maternity leave planned in the next 12 months?

2️⃣ Credit Score Optimization: Aim for 680+ (boost your score by paying off small debts and avoiding new credit applications).

3️⃣ Debt Restructuring: Consolidate high-interest loans (e.g., car loans, personal loans) to lower your GDS ratio and 

improve mortgage approval chances.

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✨ Pro Tip:

Use a Time-Weighted Savings Model to break down closing costs into a monthly savings plan. Work with a licensed 

mortgage broker to compare rates across multiple banks, and consult an accountant for tax optimization strategies.

Reach out to us for more details