Buying a New Build
New homes come with long closing dates, builder deposits and a lot of waiting. We plan the mortgage around your possession timeline so the financing is ready when your home is.
The short answer
A new construction mortgage usually funds on possession day, months after you sign with the builder. The keys are a pre approval before you sign, a plan for the builder's deposit schedule, and a lender whose rate hold and conditions fit your closing date. We compare builder preferred lenders with the rest of the market so you get the best fit, not just the most convenient one.
Lacroix Mortgage Group is a Calgary mortgage team licensed with and powered by Mortgage Connection Inc., a mortgage brokerage licensed in Alberta by the Real Estate Council of Alberta (RECA), and part of the DLCG network. Our brokers are individually licensed. See licence details.
New Build Mortgage Questions
How is a new build mortgage different from buying a resale home?
With a new build, you sign the purchase agreement months before possession. You pay deposits to the builder along the way, and your mortgage funds on the possession date, which can be far in the future. That gap means planning around rate holds, changes in your income or debts, and the final appraisal.
When should I get pre approved for a new build?
Before you sign with the builder. A pre approval shows what you can afford and helps you plan the deposit schedule. Then, as possession gets closer, we lock in the final approval with a lender whose rate hold and timelines fit your closing date.
Can I hold a rate until my home is finished?
Standard rate holds are usually 90 to 120 days. Some lenders offer longer holds for new construction, and some builders have preferred lender programs. We compare these with the open market so you are not locked into a builder's lender if a better option exists.
What is the difference between a completion mortgage and a draw mortgage?
Most homes bought from a builder use a completion mortgage, which funds in one payment on possession. If you are building a custom home on your own lot, you typically need a draw mortgage, where the lender releases money in stages as construction progresses. We arrange both.
Can I use my builder deposits toward my down payment?
Yes. Deposits you pay to the builder count toward your down payment. Lenders will want proof of the deposits paid and where the money came from, so keep receipts and bank statements.
Is there a GST rebate on a new home in Alberta?
New homes include GST, and there may be a rebate depending on the price and whether it will be your main residence. Rules change, so confirm with the builder and your lawyer. Our guide explains how it works.
GST new housing rebate →Your New Build Mortgage, Step by Step
- 1
Pre Approval
Know your budget before you sign with a builder.
- 2
Deposit Plan
Map the builder's deposit schedule to your savings.
- 3
Lender Match
Rate hold and timeline that fit your possession date.
- 4
Stay on Track
We check in before closing so nothing surprises you.
- 5
Final Approval
Appraisal, conditions and lawyer coordinated.
- 6
Possession Day
Mortgage funds and you get the keys.
Talk to Us Before You Sign
No obligation and no credit check to start. Send us the builder, the price and your possession date, and we will map out the deposits and financing.
Plan My New Build Mortgage
Let us know the builder, community and expected possession date.
Questions About Working With a Mortgage Broker
How does a mortgage broker get paid in Alberta?
Mortgage brokers in Alberta are usually paid by the lender when your mortgage closes, not by you. The lender pays the brokerage a finder's fee, so for most standard residential mortgages our service costs you nothing.
How much do I need for a down payment in Calgary?
In Canada the minimum down payment depends on the purchase price. Up to $500,000 you need 5%. Between $500,000 and $1,500,000 you need 5% on the first $500,000 and 10% on the rest. At $1,500,000 or more you need 20%. Many Calgary first time buyers put down 5% to 10%.
How does the mortgage stress test work in Canada?
You must qualify at the higher of your contract rate plus 2% or the 5.25% minimum qualifying rate. The rule is set by OSFI (the Office of the Superintendent of Financial Institutions), not the Bank of Canada, and applies to federally regulated lenders. It checks that you could still afford payments if rates rise.
Is it better to go with a bank or a mortgage broker?
A bank can only offer its own products. A broker compares dozens of lenders, including major banks, credit unions and alternative lenders, and matches you to the best fit. Brokers often find better rates, more flexible terms, or approvals a single bank would not offer, at no cost to you for most mortgages.
When should I start shopping for my mortgage renewal in Alberta?
Start about 120 days before your term ends. Most lenders will hold a rate for up to 120 days, which gives you time to compare offers without rushing. A broker can review your renewal letter and show you what else is available.
Can you help if I'm self employed or my income has changed?
Yes. Self employed borrowers and people with commission, contract or changing income often benefit most from a broker. We work with lenders that specialize in business for self and non traditional income, and matching you to the right lender matters more when documents are not straightforward.
When should I talk to a mortgage broker?
Before you start house hunting. A pre-approval gives you a clear budget, can hold a rate for 90 to 120 days, and shows sellers you are serious. If you are renewing or refinancing, reach out at least four months before your term ends.
Building Something New?
Let's make sure the financing is ready when your home is.
Or call (403) 648-1541