Pre-construction guide
Mortgages for pre-construction
When you get approved, rate holds, appraisals and the 30-year amortization.
Approval happens near closing
Builders often want to see that you can qualify when you buy, but your actual mortgage is approved close to completion, based on your income, debts, rates and the home’s appraised value at that time. Keep your finances stable while you wait.
Rate holds and appraisals
Standard pre-approvals hold a rate for about 90 to 120 days, and some lenders offer longer holds for new builds. If the appraised value at closing is below your purchase price, you need to cover the difference, so plan a cushion.
30-year amortization for new builds
Since December 2024, insured mortgages can have a 30-year amortization for first-time buyers and for buyers of newly built homes, which lowers monthly payments. A small premium surcharge applies.
General information only, reviewed October 2026. Confirm the details for your purchase with your lawyer.