# What are the nuances of new construction 'Pre-construction' condos?

> Pre-con condos have two closings: 'Occupancy' (you move in but don't own it yet, paying rent to the builder) and 'Final Closing' (you take title and the mortgage starts).

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-are-the-nuances-of-new-construction-pre-construction-condos

## Answer
Pre-con condos have two closings: 'Occupancy' (you move in but don't own it yet, paying rent to the builder) and 'Final Closing' (you take title and the mortgage starts). Lenders will provide a 'Rate Hold' but it often expires before final closing. Buyers must re-qualify at final closing, which is risky if rates have risen or their income has changed over the 3-5 year build period.

## Related guide
- https://ratellow.com/guides/condo-mortgage-nuances

## Sources
- FCAC Condo Buying Guide — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html#toc3
- B-20 Condo Underwriting — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2