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100% Preconstruction Financing

This unique program is from a Tier-1 Bank in Canada and is the best product for borrowers looking to take equity out of the newly built property. This product saves borrowers money from paying two closing costs by combining both purchase and equity-take-out in one transaction on Closing Day.

A specialty mortgage product from a Tier-1 Bank in Ontario allows borrowers to get their deposit amount out of the property on Closing Day and get financing up to 100% of the Purchase Price.

There are a few things that borrowers would want to know more about this alternative mortgage solution. Contact your local mortgage broker or book a free consultation with one of ours for more details.

100% Financing up to the Purchase Price

Only applicable for newly built real estate properties that had appraised in value from the Purchase Date until the Closing Day.

Tier-1 Bank in Canada

This lending product is provided by a Tier-1 Bank in Canada that goes through the same regulations and compliance scrutiny as top banks in Canada that have become household names, such as TD, RBC, CIBC, BMO, etc.

Appraised on Current Value

The advantage of buying preconstruction property is the increase in property value (in most cases) and this alternative mortgage solution appraised the property based on a current value closer to the Closing Day, instead of the Purchase Date.

Trusted Lenders

At Richmond Hill Mortgage Broker, we work with lenders who are reputable and have established outstanding levels of customer service, integrity, and compliance with regulatory authorities.

What To Know About 100% Preconstruction Financing in Richmond Hill

An alternative mortgage lender who provides 100% preconstruction financing can be beneficial because they will assess the property based on the current value. This means they will factor in the appreciation in value when assessing the property. This can be beneficial especially when the preconstruction property has appreciated over the years while the developer builds the property for occupancy.

100% Preconstruction Financing on Closing Day

Buyers who buy preconstruction properties must go through at least a couple of years between the date of purchase and the closing day when their names are registered as property owners. As the builder builds up the property from the ground until the occupancy period, a few years pass by, and over time the property value increases most often.

The benefit of alternative mortgage lenders who provide 100% preconstruction financing is that they assess the property based on the current value (instead of the purchase price a few years back). It enables borrowers to qualify for a mortgage up to 100% of the purchase price because the current value has exceeded the purchase price from a few years back.

100% preconstruction financing is not a common practice because most federally-regulated financial institutions will only assess a property for mortgage up to the lesser of 80% of the purchase price or the current value. Therefore, borrowers who are real estate investors have to secure a second mortgage if they wish to take equity out of the property gained from appreciated value over the years, which means another set of closing costs and expenses that could have been avoided.


This alternative mortgage lending product is available from a federally-regulated financial institution in Canada and private lenders who have been vetted to qualify to work with Matrix Mortgage Global.

FAQ on 100% Preconstruction Financing

Is Mortgage Preapproval Required for Preconstruction?

The requirement for mortgage preapproval depends on each developer and preconstruction project. Some developers may require that buyers obtain a preapproval letter from a financial institution or a mortgage broker to be considered for purchase, while others may not have this requirement. Preconstruction projects may also have different requirements in terms of mortgage preapproval. Before beginning the purchase process, checking with the developer or real estate salesperson is crucial to see what preapproval criteria exist.


It is common these days for developers to require borrowers to provide a preapproval letter from a financial institution or mortgage broker with their offer to purchase to prove that they can make the purchase.

Any individual or business looking to get a mortgage preapproval letter will need to prove they have the financial ability to purchase by providing financial statements, bank records and other documentation as proof of funds available. Buyers may also need proof of a decent down payment to show they're serious about going ahead with the purchase.

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Justin W, Richmond Hill

As a first time home buyer I was very nervous about buying a home. The professional staff at Matrix Mortgage Global took the time to answer my questions even after hours. I was very pleased with the service and how I was treated.

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Jignesh S, Toronto

I'm a self-employed cab driver. I was devastated when my bank, with whom I've been banking with for years turned me down for a mortgage. My business is mainly cash, and I didn't meet the bank's criteria for proving my income. I found Matrix Mortgage Global online and decided to give them a call. I was surprised that I got approved. I thought that if my bank turned me down everyone would. Thanks!


Andrea C, Markham

I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit

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Enjoy the peace of mind from knowing that you are working with someone who has a deep understanding of the mortgage industry and will work smart to get you the best possible deal.

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Better Options with


Alternative mortgage solutions give borrowers more options and might be a better fit for those who don't meet the bank's standards.


These options might have higher interest rates or different terms, borrowers just have to take them into account and come up with an exit strategy that is affordable in the short and long term.


Work with the right lender for your situation, so you can get approved for the best mortgage.

A specialty mortgage product from a Tier-1 Bank in Ontario allows borrowers to get their deposit amount out of the property on the Closing Day.

A specialty product from alternative lenders allows borrowers to lower their mortgage payment amount by extending the amortization period, up to 40 years.

A specialty mortgage product from alternative lenders allowing borrowers to pay only the interest portion of the mortgage throughout the entire Term.

Don't settle for lenders who would only recognize up to 75% of the rental income to offset your debt-to-income ratio. Ask for 100% of the rental income to be qualified.

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