Closing your pre-con?
Don't close blind.
Most 2020–22 GTA pre-con units are now appraising below their original contract price (Urbanation, Realosophy, and internal broker-channel appraisal data throughout 2024–25). That means your bank won't lend on the full contract amount — and you have weeks, not months, to bridge the gap. We build closing plans that get you through: shadow appraisals, B-lender workouts, bridge financing, or a documented walk-away.
- ✓ Shadow appraisal to know the gap before your lender does
- ✓ Second mortgage / private bridge for short-term gap-close
- ✓ B-lender option if A-lender declines the file
FSRA-licensed · Closing consultations in < 24 hours
Most
GTA pre-con units bought 2020–22 appraise below original contract
3
lender tiers we quote to close the appraisal gap
30 days
typical closing turnaround from full doc submission
6 Traps at Pre-Con Closing
Every one of them is a wire-transfer deadline away
The appraisal came in low
Your $1.2M contract price now appraises at $950k. The lender will only advance 80% of appraisal — not purchase price. You need to bridge $200k+ from somewhere or the deal collapses and you lose your deposit.
Interim occupancy fees are stacking
Occupancy fees are pure rent — no equity builds. Every month you delay closing = another $2,800–4,500 wasted. Move fast.
Your rate hold expired
Pre-construction contracts often close 2–3+ years after signing. Rate holds are typically 120 days. You're now shopping current rates, and they're higher than your original assumption.
Employment changed since deposit
Went self-employed since signing the APS? Changed jobs? Bank underwriting may reject the file that your original lender pre-approved. Alt-A or B-lender is often the only path.
Assignment fell through
Planned to assign the contract but couldn't find a buyer. You now have to close and hold. Financing plan needs to pivot to end-buyer mortgage + potentially a rental exit strategy.
Deposit stacking on multiple units
Bought 2+ pre-con units to close within months of each other. Multiple simultaneous mortgages require careful lender sequencing so you don't breach DTI on the second file.
4 Ways to Close the Gap
Ordered from cheapest to last-resort
01
Second mortgage / private bridge
Best when: Gap under $250k, credit strong, exit plan within 12 months (income improves or property appreciates)
02
B-lender extended amortization
Best when: A-lender declined for DTI. B-lender 30–35yr amort brings monthly under threshold. Rate 5.99–7.99%, no fee to you.
03
Family gifted equity injection
Best when: Parents can gift the gap. Requires signed gift letter + source-of-funds. A-lender accepts.
04
Assignment / re-sale
Best when: If bridge financing isn't viable, list the unit before final closing. Better to lose the deposit + assignment fee than to close into negative equity.
Questions you probably have
What is a shadow appraisal?+
An independent appraisal you commission BEFORE your lender orders theirs. Cost: $500–$700. Purpose: know the number before it becomes a crisis. If it comes in low, you have weeks (not days) to build a bridge plan. If it comes in at price, you close normally with the lender's appraisal as a formality.
The builder is charging me extended occupancy fees. Are they legal?+
Yes, per your APS. But there's often room to negotiate — especially if delays are on the builder's side. We've seen brokers negotiate 30–60 days of occupancy fees down or waived, particularly for buyers who commit to closing on the builder's revised timeline. Ask, don't assume.
Can I still get an insured mortgage on a pre-con condo?+
Yes if under $1.5M purchase price and less than 20% down. CMHC / Sagen / Canada Guaranty all insure pre-con. The appraisal must still support the value at insured LTV — which is the appraisal-gap problem for post-2020 files.
My original lender pre-approved me 2 years ago. Are they still on the hook?+
Almost never. Pre-approvals expire (usually 90–120 days). Rate holds expire. Employment/income changes require re-underwriting. Treat the pre-con closing as a fresh file — because to the lender, it is.
Can I walk away and just lose my deposit?+
Legally messy. Your APS obligates you to close. Builders can and do sue for the difference between contract price and eventual re-sale price PLUS carrying costs. Walking away costs more than the deposit in almost every case — get a real-estate lawyer's opinion before you assume this is an option.
Do you help with commercial pre-con (retail / mixed-use)?+
Yes, but the lender universe is different. Commercial pre-con financing runs through credit unions and select monolines — email us the APS and we'll route.
Related situations
Might also fit your file
Bank declined the closing?
A rejection at final closing routes to alt-A / B-lender with extended amortization — same 30-day timeline.
Open playbook →
Closing to hold as rental?
If your assignment fell through, we can structure the file as an investor mortgage with rental offset.
Open playbook →
Refi after closing
Once the unit stabilizes, refi to pull out the equity you had to bridge in — plan the exit before you close.
Open playbook →
A missed closing costs more than the deposit.
Get a real closing plan before the wire deadline. Twenty-four hours from now you'll know exactly what you're working with.
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