Presale Mortgages
Our guide to overcoming the hurdles and succeeding when buying a presale
Investing in a new build can deliver great returns — if you secure the right financing.
Investing in a new build can deliver great returns — if you secure the right financing.
Buying into a brand-new condo building, townhouse development or subdivision comes with a lot of perks.
In a lucrative real estate market, pre-sale investments have the potential to deliver great returns for buyers who can afford to wait out the construction period. We've all heard stories about pre-sale buyers making big profits when housing prices rise, making pre-sales popular among investors and homeowners alike.
Not only does investing in a new build come with the potential of earning a profit, but in B.C., new builds are backed with a 2-5-10 home warranty. That's peace-of-mind that you just can't get by purchasing a resale property.
Simple, stress-free financing for new builds.
Simple, stress-free financing for new builds.
Purchasing a presale contract can be overwhelming, especially for first-time home buyers.
At Silverman Mortgage Group, we're committed to helping you make the most of your real estate investment.
We work hard to provide you with clear, accurate information about financing your new build purchase. Our team of mortgage specialists will answer all of your questions about buying into a new build in B.C., and we'll give you various financing options to choose from.
And unlike the big banks, we won't up-sell you products and services that you don't want or need.
Click here to get started. For more information read our guide to pre-sale financing in Greater Vancouver, the Fraser Valley and the Interior.
Presale Guide.
Jordan de Brouwer
"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."
Leah Allen
"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."
Reid Arkinstall
"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."
Ready to Get Started?
Our team of all licensed experts is available to guide you through the entire presale buying process.
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As property prices continue to rise across Canada, the conversation around "how to climb the property ladder" has made a subtle shift to "how to get on the property ladder in the first place." Especially if you're single. Whereas before it was assumed anyone would qualify to buy a starter home (or condo), nowadays with increased housing prices and the government making it tougher to qualify for a mortgage through a financial stress test, becoming a homeowner isn't a walk in the park. Qualifying for a mortgage on a single income is becoming increasingly difficult. Unfortunately, just because you have a proven ability to pay rent on time doesn't mean you will qualify to make mortgage payments in the same amount. So if you are looking to get into the housing market, but don't qualify on your own, maybe you should consider co-ownership as an option! So what is co-ownership anyway? Well, co-ownership is when more than one applicant takes on the financial responsibility of owning a property together. Co-ownership can take on many forms. Obviously owning a home with your spouse or life partner is the most common form of co-ownership, while having your parents co-sign on a mortgage is another. But for the sake of this article, let's think past these arrangements. Did you know that there are really no limitations with whom you can purchase a property? This is assuming they meet the lending criteria. Maybe a brother, sister, cousin, neighbour, co-worker, friend, your mechanic, financial advisor, or some distant relative just happens to be looking to get into the housing market as well? There is a good chance that by combining your incomes together, you will qualify for a mortgage that neither of you would qualify on your own. Bringing someone else into the picture, or even a group of people, can significantly increase the amount you qualify to borrow on a mortgage. Most lenders will accept up to four applicants on a mortgage, while some lenders have even gone as far as launching products designed to make buying with friends and family easier. Buying a property with someone(s) in a co-ownership arrangement is becoming way more commonplace. However, before making the decision to buy a house with someone, there is no doubt going to be a list of things you are going to want to work through. You will want to get everything out in the open and ask yourself questions like... Do I trust this person? Can I live with this person? Am I comfortable making decisions about the home with this person? How will conflict be managed when it arises? What happens if either party runs into financial trouble? What is the exit plan? The more you work through ahead of time, the better chance you have at successfully co-owning a house with someone. A lot of people who purchase a property in a co-ownership agreement treat it like a business arrangement. If you'd like to talk more about what this would look like for you personally, please don't hesitate to contact us anytime. We can walk you through the process step by step and get you (and your partner in real estate) the best mortgage available to you!
One of the benefits of working with an independent mortgage professional is having lots of great financing options! Rather than dealing with a single lender who has one set of products, brokers work with multiple lenders who offer a wide selection of mortgage financing options. This comes in handy when your situation isn't "normal" or you don't quite fit the profile of a standard buyer. Purchasing a new construction home through an assignment contract would be a great example of this. Purchasing a new construction home through an assignment contract can be tricky as not every lender wants the added perceived risk of dealing with this type of transaction. Most of these lenders won't come out and say it, rather they will simply add a significant list of qualifying conditions to make the process harder. The good news is, there are lenders available exclusively through the broker channel that have favourable policies for assignment purchases. Here are some of the highlights: In order to qualify, all standard purchase qualifications apply (income, credit, and downpayment) Assignments can be at original purchase price, or current market value Minimum 620 beacon score with no previous bankruptcies or consumer proposals The full downpayment must come from the purchaser and not include any seller incentives As far as documentation goes, the lender is going to want to see the original purchase agreement signed by all parties, the MLS listing, the assignment agreement signed by the builder, original purchaser, and the new buyer. The lender will also want to see the side agreement between the original purchaser and the new buyer that includes the amended purchase price, and the lender will want to substantiate the value through a full appraisal. Now, as every situation is different, this list of conditions is in no way exhaustive, but simply meant to show that assigning a new construction purchase contract is in fact doable while highlighting some of the terms necessary to secure financing. If you are looking to purchase new construction through an assignment contract, or if you want to discuss purchasing a home through traditional means, please contact us anytime! We have access to the very best products on the market that won't limit your financing options!
