Step-by-step Guide to Buying a Pre-Construction Home
The process for buying a pre-construction home is slightly different than buying a resale home, and our team wants to ensure you are confident and prepared during the process.
Step 1: Learn about developers and their communities
Start by exploring developers and communities that align with your needs and lifestyle.
Look for:
Developer Reputation: Check reviews, past projects, and warranties.
Location: Consider commute times, schools, amenities, and long-term growth potential.
Community Plans: Learn about amenities, green spaces, and future development in the area.
Tip: Visit the developer’s website or sales office to get a feel for their vision and offerings.
Step 2: Sign up for priority lists and attend sales events
Many developers hold pre-sales events or offer priority registration for interested buyers.
Registering early can provide:
Access to floor plans and pricing before public release.
Priority in selecting your desired unit or lot.
Tip: Stay informed by joining newsletters or priority lists to get updates on upcoming launches.
Step 3: Review floor plans and pricing
Once sales open, review available floor plans, lot sizes, and pricing.
Floor Plans: Choose a layout that fits your needs (e.g., number of bedrooms, open concept).
Upgrade Options: Check for customizable features like finishes and fixtures.
Pricing: Ensure the price aligns with your budget, keeping in mind future closing costs.
Tip: Ask for a price list and upgrade costs so you can evaluate options comprehensively and don’t be afraid to reach out to the community’s sales team to ask questions so that you can qualify the property or disqualify early in your search.
Step 4: Secure financing, then budget accordingly
Before making an offer, secure a mortgage pre-approval to understand how much you can borrow.
Deposit Structure: Pre-construction homes often require staggered payments, such as 5% at signing and additional payments at set intervals.
Closing Costs: Budget for fees like legal costs, development charges, and HST (on upgrades or if buying as an investor).
Tip: Work with a mortgage specialist, and be sure to ask the community developer if there are any mortgage partnerships for buyers to take advantage of.
Step 5: Sign the Agreement of Purchase and Sale (APS)
When you’re ready to commit, you’ll sign the APS—a legally binding contract outlining terms, timelines, and conditions.
Cooling-Off Period: In some provinces, like Ontario, you’ll have a cooling-off period (typically 10 days) to review the agreement with a lawyer.
Review Carefully: Pay attention to clauses regarding upgrades, occupancy dates, and closing costs.
Tip: Hire a real estate lawyer to ensure you fully understand your rights and obligations.
Step 6: The Construction Phase
Quite often, construction is either about to start or has already started once your deposit is paid and the agreement is finalized.
This is the phase where it all comes together. While this is an exciting phase, it’s also the hardest. Why? Because we’re all excited to see the project come to life. During this time, we’ll:
Provide updates on progress.
Provide resources to help you plan your move and familiarize yourself with your new community.
Tip: Be prepared for potential delays due to permits, materials, or weather - while this doesn’t always happen, there is always the risk that project(s) can be delayed due to challenges outside of our control. If anything comes up, we do our best to communicate well in advance so that you and your family can prepare.
Step 7: Conduct the Welcome Home Session
As your home nears completion, you’ll conduct a “Welcome Home Session” with you. This session allows us to go through the home together to:
Identify any deficiencies or unfinished items.
Learn how to operate systems like HVAC, plumbing, and appliances.
Confirm that the finishes match your selections.
Tip: Bring any questions you may have - this is an opportunity for us to address any lingering concerns.
Step 8: Occupancy and Interim Closing
For condos or multi-unit buildings, you may move in during the occupancy phase, which occurs before the building is fully completed.
During this time:
You’ll pay occupancy fees (covering interest, maintenance, and taxes) until the final closing.
Some areas may still be under construction, but your unit will be ready to live in.
Tip: Stay patient as final touches to the community or building are completed.
Step 9: Final closing
The final step is closing, when you officially take ownership of the property.
At this stage:
You’ll pay the remaining balance of the purchase price.
Legal ownership is transferred to you.
Your mortgage will begin, and you can fully settle into your new home.
Tip: Confirm all warranty documents and ensure your builder registers the home with applicable warranty programs (e.g., Tarion in Ontario).
Step 10: Enjoy
Congratulations—this is the most exciting (and relieving) part of your journey because you’re now the proud owner of a brand-new pre-construction home!
Take time to personalize your space, explore your community, and settle into the lifestyle you envisioned.
Questions?
At Mistral Communities, we’re here to support you through every step of your pre-construction journey.
From helping you select the perfect home to ensuring a seamless closing process, our team is dedicated to making your experience stress-free and rewarding.
Please feel welcome to reach out to our team if you have any questions about our homes, communities and programs.