Interim occupancy
You move in and pay the builder an occupancy fee covering interest on the unpaid balance, estimated taxes, and maintenance. None of it pays down principal, and no mortgage exists yet.
Final closing is when the mortgage funds
Once the building registers, title transfers and your mortgage advances. That is when the lender orders an appraisal - against today's value, not the price you agreed to years ago.
- Start the mortgage application well before the registration date
- Confirm the builder's adjustments and development charge caps
- Budget for HST treatment if the unit will be rented
- Keep your income and credit stable through the waiting period
If value has fallen below your purchase price
The lender funds against the lower figure and you cover the difference. Options include additional cash, a co-signer, an alternative lender, or in some cases assigning the contract before closing if the builder permits it.
Do not wait for the builder's deadline
Builders give a set window between registration and final closing, and it is short. Getting financing arranged early is what keeps a deposit safe.
Frequently asked questions
- Can I get a mortgage during occupancy?
- No. The mortgage funds only at final closing once the building is registered.
- Are occupancy fees applied to my mortgage?
- No, they are not credited against principal.
- Is an appraisal required?
- Almost always, and it reflects current market value rather than your original contract price.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.