If I get pre-approved when I purchase a condominium that doesn’t close for 5 years, does that guarantee that I will get a mortgage at closing?

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The pre-approval is by no means a guarantee that mortgage financing will be made available to you in the future when your condo is ready to close.

There are certain unavoidable market risks that can effect your ability to secure mortgage financing. Some of the risks include:

  • Change to personal circumstances that effect your credit suitability
  • Increase to interest rates which can affect affordability
  • Regulatory changes to mortgage qualification requirements

It is worth while working with a broker/banker who can stay in touch with you and guide you should anything change.

This question was answered by Chris Molder (Mortgage Broker)

Roy Bhandari