Pre-construction homes: Higher rates may prevent some buyers from taking ownership, broker says
BNN Bloomberg
Higher interest rates could become a problem for some buyers of pre-construction homes, according to a mortgage broker.
Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said buyers of pre-construction homes are often pre-approved for their mortgage up to three years in advance to its completion.
According to ReMax, buyers of pre-construction homes put down a deposit and the builder sets a date to deliver the home. Upfront costs are generally lower as the deposit or down payment occurs at set intervals.
“A lot has changed over the course of the last two years. So if you bought something pre-construction two years ago, you might not be working in the same industry or different things may have changed [for you] financially,” said Zlatkin.
