Read the disclosure statement and contract as legal documents
The BC Financial Services Authority's consumer guide says a developer must provide a disclosure statement before selling a presale unit. It describes matters such as estimated construction dates, estimated strata fees, bylaws, parking and the buyer's contractual rights and obligations. Amendments can follow. A mortgage review does not replace independent advice from a lawyer, notary or real estate licensee about those documents.
BCFSA also describes a seven-day right to cancel after the later of signing the presale contract and acknowledging the opportunity to read the disclosure statement. Buyers should verify how the law applies to their specific dates and documents with a qualified professional. A sales-centre deadline is not a reason to skip legal or financing review.
A preliminary mortgage discussion has an expiry date
At contract signing, a broker can review the buyer's current income, credit, debts, down payment plan and the information then available about the project. Some lenders may offer presale-related approval or rate-hold programs with specific conditions. None should be described as permanent approval for a completion that may be months or years away.
Before funding, the lender normally reassesses the file under the policies and facts then in effect. Employment can change. A buyer can add a vehicle loan or carry larger credit balances. Interest rates and qualifying requirements can move. The building must be completed and legally ready for closing, and the unit may require an appraisal. A buyer who qualified at signing can still face a gap at completion.
Plan deposits and the final down payment separately
The presale contract sets deposit amounts and dates. Keep proof of the original source and every transfer. The deposits normally form part of the down payment at completion, but the buyer must still provide the remaining down payment, legal costs, property transfer tax if applicable, adjustments, insurance and other closing funds. Do not count an expected bonus, asset sale or family gift until its timing and documentation are realistic.
If money will come from an FHSA, RRSP Home Buyers' Plan, investment account, sale of another property or gift, ask early what evidence will be needed and when the money can be accessed. Tax rules and contract deadlines are separate. A delay in one source does not automatically extend the developer's completion deadline.
Understand appraisal-gap risk
The purchase price is set in the presale contract, while a lender's value assessment happens under its own process. If the supported value at completion is lower than the contract price, the lender may calculate the mortgage using the lower value. That can increase the buyer's required cash. No broker, developer or sales representative can guarantee the future appraisal.
A prudent plan includes a reserve, updated savings targets and a fallback discussion long before completion. It also avoids new debt that consumes qualification capacity. If an assignment is being considered, obtain legal and tax advice and confirm the developer's rules; do not assume the original mortgage discussion transfers to a new buyer.
Presale rule of thumb: revisit the mortgage file whenever income, debts, relationship status, residency, deposit source or the expected completion date changes. Silence between signing and completion is not evidence that the original plan remains valid.
A completion-readiness calendar
- Before signing: obtain independent contract advice, read the disclosure statement, map every deposit and complete a preliminary mortgage review with clear limitations.
- During construction: preserve account records, monitor credit and debts, save beyond the scheduled deposits and forward material disclosure amendments to the relevant advisers.
- When timing becomes clearer: refresh income, down payment and credit documents. Discuss current lender programs rather than relying on the terms available at signing.
- After completion notice: respond quickly to appraisal access, property records, insurance, legal instructions and lender conditions. Completion windows may be short.
- Before funding: confirm the remaining cash, arrange legal signing and insurance, avoid new borrowing and keep the broker informed of any material change.
The lender will still review a real condo
Once the strata and unit exist, the lender may review documents that were unavailable at presale signing. Actual strata fees can differ from estimates. Insurance, title, occupancy, size, appraisal and building information can affect the decision. The general Port Moody condo mortgage guide explains the property-review side of that process.
For purchase-planning help and Milka's contact path, return to the Port Moody mortgage broker page. First-time purchasers should also review the Port Moody first-time buyer guide so registered-plan withdrawals, minimum down payment and closing funds are not left until completion.
Port Moody presale mortgage FAQs
Does a presale mortgage approval last until completion?
No. An early review or conditional approval is based on the borrower, project, lender policies and facts available at that time. Before funding, the lender can reassess income, credit, debts, down payment, the completed unit, appraisal and current program rules.
What happens if the appraisal is below the presale contract price?
The lender may calculate the mortgage using the lower accepted value. That can increase the cash required at completion or require a different financing plan, and any alternative remains subject to approval. A developer's price or earlier estimate does not guarantee the lender's future value.
Why should I keep updating income and down payment documents?
Completion can occur long after signing. Current documents let the broker identify changes in employment, debts, credit, deposit sources and remaining cash before the closing window becomes urgent. Keeping records does not guarantee approval, but it reduces avoidable surprises and delays.