Pre-Construction Condo Closing Gap Calculator

Your lender finances the lower of purchase price and appraised value — so the entire shortfall lands on you as extra cash at closing, on top of your remaining down payment. This is the single most common surprise in pre-construction closings in Ontario right now.

Defaulting usually means losing your deposits, and builders can also sue for the shortfall if they resell for less. That makes almost any financing route — a B lender, a private first, family funds secured properly — cheaper than walking away. Get help before the closing date, not after.

Every lender caps the mortgage at a percentage of the lower of price and appraisal. If you bought at $650,000 and it appraises at $560,000, an 80% loan is $448,000 — the $90,000 gap plus your down payment must come in cash.

The usual tools: equity from another property via a second mortgage or HELOC, a B or private first mortgage sized on flexible terms, gifted funds, or blending several. Files close every week on combinations like these — the key is starting 60–90 days before occupancy.

Sometimes — if your agreement allows assignment and the builder consents. In a soft market assignments often sell below your purchase price, so you’d still fund the difference. Compare that loss against the cost of closing and holding before deciding.

Yes — lenders re-pull credit before funding, and a score that slipped during the 3–4 year build can void the approval. If that’s you, a B or private lender can close on the same condo while you rebuild, then refinance to a bank later.