Zoocasa
Sold Prices
Mortgage Calculator
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Ask the Pros

Navigating the Next Steps After Purchasing a Pre-Construction Home

Emmy Cao by Emmy Cao
July 19, 2023
in Ask the Pros, Buying a Home, Pre-construction
Reading Time: 4 mins read
A group of people meeting around a table with an architectural model in the middle.
Share
Tweet
Share
0 Shares

Congratulations on purchasing a pre-construction home! Now that you’ve made this significant investment, it’s essential to take the right steps to ensure a smooth and successful process moving forward. In this article, we will guide you on what to do after purchasing a pre-construction home, highlighting the importance of involving a lawyer and obtaining a mortgage pre-approval within the specified timeframe.

Enjoying our content? Subscribe to our free weekly newsletter to get real estate market insights, news, and reports straight to your inbox.

Secure Legal Guidance

Immediately after purchasing a pre-construction home, it’s crucial to seek the assistance of a real estate lawyer. Your Agreement of Purchase and Sale (APS) contains legal terms and conditions that require careful examination. A lawyer can review the agreement and often negotiate terms with the developer within the 10-day cooling period. They can also guide you through the various stages of the process, including negotiations, contract amendments, and final closing.

  • Read: Weighing the Pros and Cons of Pre-Construction Homes

Review and Understand the APS

Take the time to thoroughly review the APS, ensuring you understand all the terms and conditions outlined within it. Your lawyer can help clarify any ambiguous clauses and ensure that you are fully aware of your rights and responsibilities. Pay attention to crucial details such as completion dates, construction milestones, deposit amounts, and any potential penalties or charges for contract breaches.

Obtain a Mortgage Pre-approval

Most developers require buyers to obtain a mortgage pre-approval within a specified timeframe after signing the APS. This is an important step as it confirms your ability to secure financing for the purchase. Contact multiple lenders to explore your options and obtain preapproval letters that outline the maximum loan amount you qualify for. Submit the pre-approval documents to the developer within the designated timeframe to fulfill this requirement.

  • Read: The Most Affordable Ontario Cities to Buy Real Estate in July 2023

Plan for Closing Costs and Budgeting

While you await the completion of your pre-construction home, it’s crucial to plan and budget for closing costs. These costs are not included in the purchase price, therefore you will need to have this amount saved up separately as they will not fall into your mortgage. Closing costs typically include land transfer taxes, legal fees, title insurance, development charges, and other administrative expenses. Understanding and preparing for these costs in advance will help ensure a smooth closing process once construction is complete.

  • Read: New Listings in Canada Catching Up To Sales As Market Begins Balancing Out: CREA

Prepare for Closing and Move-In

As the construction nears completion, you will receive a notice of occupancy or a firm closing date from the developer. Work closely with your lawyer to ensure all required paperwork and funds are in order for the final closing. You will also be required to conduct a pre-delivery inspection (PDI) prior to occupancy. This inspection will allow you to note discrepancies and deficiencies. 

Purchasing a pre-construction home in Toronto is an exciting milestone. To ensure a successful and hassle-free experience, it is crucial to involve a real estate lawyer from the beginning, carefully review the Agreement of Purchase and Sale, obtain a mortgage preapproval within the specified timeframe, plan for closing costs, and prepare for the final closing and move-in.

Looking for a pre-construction unit to call home? We’re here to help! We have real estate agents in your city ready to guide you through the whole pre-construction process. Give us a call to get it started today.

In the market for a pre-construction home?
Contact us today to speak to a Realtor in your area
Previous Post

Analyzing the Impact: Can House Prices Decline if Canada’s Population is Growing at Record Rates?

Next Post

Here’s What First Time Home Buyers Will Pay in Closing Costs in Alberta [REPORT]

Emmy Cao

Emmy Cao

Emmy has been involved in the preconstruction industry since 2014 working on both the sales side as well as directly on the builders side. Outside of work, you can often find her playing different kinds of sport, going on hikes and exploring new restaurants.

Related Posts

British Columbia

When the Street Name Steals the Show: 5 of Canada’s Funniest Home Listings

May 20, 2025
A group of friends sitting on the beach.
Advice

10 Things to Do in Pensacola That Turn Visitors Into Homeowners 

May 19, 2025
Two people sitting on a hammock together.
Advice

Discover Moncton: Top Things to Do in New Brunswick’s Vibrant City

May 18, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

When the Street Name Steals the Show: 5 of Canada’s Funniest Home Listings

May 20, 2025
A group of friends sitting on the beach.

10 Things to Do in Pensacola That Turn Visitors Into Homeowners 

May 19, 2025
Two people sitting on a hammock together.

Discover Moncton: Top Things to Do in New Brunswick’s Vibrant City

May 18, 2025
Scenic view of Hoboken's pier

Hoboken Living: Why This NYC Neighbor Is Stealing the Spotlight in 2025

May 17, 2025

Featured Listings

Dream Homes with Breathtaking Views in the U.S.

February 11, 2025
A family looking at a house.

Deals of the Month: Ontario Homes with Recent Price Reductions

November 12, 2024

Slopeside Living: 9 Ontario Homes Near Ski Hills and Resorts

October 11, 2024
An athlete holding USA flag.

Homes of Champions: Luxurious Mansions Fit for America’s Olympians

August 5, 2024
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.