Trusted mortgage services
Financing a presale or new build in BC
You sign now, but your mortgage is approved at completion. We plan your deposits, tax savings and financing so the numbers still work on completion day, and compare over 50 lenders.
- 5-yr fixed
- 4.89%
- 5-yr variable
- 3.70%
Updated Oct 22 · on approved credit · Compare to bank rates
Sign now, qualify at completion
A presale is a home you buy from the developer months or years before it's finished. You sign the contract and pay deposits now, but your mortgage is only approved near completion, based on your income, the rates, the lending rules and the unit's appraised value at that time. A pre-approval when you sign is a useful stress test, not a promise.
Buying new also brings real savings. A newly built home can be free of property transfer tax, first-time buyers can get the GST back, and any buyer of a new build can take a 30-year insured amortization. We help you claim what you qualify for, test the purchase at a higher rate before your 7 days to cancel run out, and line up a mortgage that still works on completion day, comparing banks, credit unions and other lenders rather than only the developer's preferred one.
What's different about buying new
Seven days, and a deposit in trust
BC's Real Estate Development Marketing Act gives you 7 days to cancel a presale in writing, from the later of signing and receiving the disclosure statement, and get your deposit back. A brokerage, lawyer or notary holds deposits in trust, unless the developer has deposit protection insurance and uses them to build.
Tax savings on a new home
Citizens and permanent residents buying a newly built home to live in pay no property transfer tax up to $1,100,000. First-time buyers can also get back the GST, up to $50,000: in full on a home up to $1 million, shrinking to nothing at $1.5 million. On an $899,000 condo, a first-time buyer who qualifies for both saves $60,930.
30 years, even if you've owned before
With less than 20% down on a home under $1.5 million, an insured mortgage on a newly built home can run 30 years instead of 25, for any buyer. The lower payment can make qualifying easier, but you pay more interest over time and the insurance premium is 0.20% higher.
How it works
Your presale, from signing to keys
Before your 7 days run out
Send us the contract and deposit schedule. We test the price at a rate one to two points above today's and work out the cash you'll need at completion. Have a lawyer or notary review the contract and confirm your right to cancel.
Pay the deposits
Pay them from savings, or from family help with a signed gift letter, and keep every statement. At completion the lender asks where your whole down payment came from.
Keep your file steady
During the build, talk to us before you change jobs, start a business, take leave or add a car loan. The lender checks your income and debts again at completion.
Final approval and keys
A few months before completion we update your documents and arrange a rate hold that covers the date. The lender appraises the unit, and your lawyer or notary claims your tax exemption and pays out the funds.
Frequently asked questions
You have questions — we have answers!
Presale and New-Build Mortgages in BC
How do presale deposits work, and when are they due?
The developer sets the amounts and dates in your contract, for example 5% when you sign and two more 5% payments over the following six months. The deposits count toward your down payment at completion. For a home you'll live in under $1.5 million, that's at least 5% of the first $500,000 and 10% of the rest; for one you'll rent out, at least 20%. Pay deposits from savings rather than an FHSA or the Home Buyers' Plan, since those withdrawals generally need the home acquired by October 1 of the year after you withdraw, and a long build can miss that.
Can I lock in a mortgage rate when I sign a presale?
Not for the whole build. Lenders hold a rate for about 60 to 130 days, depending on the lender, and a presale can take years to complete. So we test your purchase at a rate one to two points above today's when you sign, and arrange the actual rate hold a few months before completion so it covers your completion date. You don't have to use the developer's preferred lender; we compare its offer with the rest of the market at the time.
What happens at completion if rates are higher or the appraisal comes in low?
The lender approves your mortgage near completion using your income, the rates and the lending rules at that time, and you qualify at the greater of your contract rate plus 2% or 5.25%. It also appraises the unit and lends on the lower of your price and the appraised value, so if values have dropped, you cover the difference in cash. If you can't complete, the developer can keep your deposit and sue for its losses, such as the gap between your price and what the unit resells for. That's why we plan a margin on the rate and a cash buffer beyond your deposits.
Can I assign my presale contract before it completes?
It depends on your contract: the developer can refuse an assignment, limit how many it allows or charge a fee. BC's home flipping tax takes 20% of the profit on a presale contract assigned within 365 days of signing, falling to zero at 730 days, and GST applies to the assignment of a new home. If you're buying an assignment, lenders that finance them want the original contract and the assignment agreement. Get tax advice before you sign either side.
Who gets the first-time buyer GST rebate on a new home?
A buyer who is at least 18, a Canadian citizen or permanent resident, and hasn't lived in a home they or their spouse or partner owned this year or in the previous four. You must be the first to live in the home, as your primary residence, and the agreement with the builder must be signed on or after March 20, 2025 and before 2031; on an assignment, the original agreement's date counts. The builder can credit the rebate at closing, or you apply to the CRA. The older new housing rebate rarely helps in the Lower Mainland, because it ends at $450,000.
Which property transfer tax exemption applies to a new build?
Usually the newly built home exemption. Canadian citizens and permanent residents buying a newly built home as their principal residence pay no property transfer tax up to $1,100,000, with a partial exemption up to $1,150,000, whether or not it's their first home. The first-time buyers' exemption saves at most $8,000 and ends at $860,000, so on a new home below $1,100,000 the newly built exemption is worth more, and it's the one your lawyer or notary usually claims.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 22.
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Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 5.09% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.79% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.59% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.69% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.89% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 5.09% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 5.09% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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Contact info
Call, email or send us a message. We negotiate with over 50 lenders to find the right mortgage for you.
- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca