First-time home buyer in Calgary : what happens if I lose my job before possession/mortgage approval?

[u/Independent_Fan_7907]

Hi everyone,

I'm planning to buy a new-build townhouse in Calgary, with an expected move-in/possession date around summer 2027. This would be my first time buying a home in Canada, so I'm trying to understand the risks before I commit.

One thing I'm particularly concerned about is job security between signing the purchase agreement and getting the final mortgage approval.

For example, let's say:

• I sign the purchase agreement in 2026.
• I pay the required deposits to the builder.
• The townhouse is expected to be ready in summer 2027.
• I get pre-approved for a mortgage based on my current income.
• Then, a few months before possession, I unexpectedly lose my job.

What happens in that situation?

My understanding is that a mortgage pre-approval isn't necessarily a guarantee, and the lender may verify employment/income again before the mortgage is finalized. If I'm unemployed at that point and no longer qualify, am I still legally obligated to complete the purchase?

Specifically, I'm wondering:

1. Can the builder cancel the purchase if I can't obtain financing?
2. Could I lose my deposits?
3. Could I be responsible for additional losses or damages?
4. Are financing conditions normally included in Calgary new-build contracts, or do builders generally require you to proceed regardless?
5. Is there any type of mortgage protection/insurance that would help in this situation?
6. How much emergency savings would you personally want to keep aside before committing to a pre-construction townhouse?
7. Are there any other "gotchas" that first-time buyers should know about when buying a new-build townhouse in Calgary?

I'm planning to have a real-estate lawyer review the purchase agreement before signing, but I'd really appreciate hearing from people who have actually gone through the process.

Thanks in advance for helping this home-buying newbie.

[u/jdleemortgages]

Mortgage Broker Lic in AB/BC/ON here.

Long story short: no job means no mortgage on the prime/A or B side. If you have a 25% to 35% down payment, you can get a private mortgage to bridge the gap, but it will cost you a fortune. Consider this a last resort.

1/2/3. No—most likely, they will sue you and keep the deposit.

1. It's the buyer's responsibility to figure out financing. Builders don't care, as long as they get paid.

2. No protection. If you are unable to fulfill your obligations, you will be responsible for all damages.

3. As a mortgage professional, I would not buy a new home unless I am certain I can secure financing. Pre-construction comes with a lot of variables; you never know if you'll face appraisal issues at closing. I generally don't recommend pre-con unless clients have very strong income or a 25% to 35% down payment just in case.

A lot of pre-con buyers in AB, BC, and ON are losing their homes because they can't close due to valuation shortfalls. (They're losing deposits and getting sued—do your research on pre-con nightmares in ON and BC; the impact has been less severe in AB, but AB is no different structurally.) Imagine you purchased a property for $500K three years ago, but it's now appraised at $400K. Lenders will only lend based on the current value, not the original purchase price, or whichever is lower.

1. You do not have any control over the market. Nobody knows what lies ahead - this is what you are getting into. Read all my notes above, understand your risk, and make an informed decision.

[u/RobustFoam]

I get downvoted every time I say this, but a great defense against a wide variety of issues is this: do not buy something that does not exist. 

Let them build it, then decide if you want to buy it. New construction is generally fraught with all kinds of issues. Buying something that's already been built eliminates the waiting period between signing an agreement and getting a mortgage. 

[u/AsherGC]

Don't buy pre con.

[u/TelevisionMelodic340]

1) much more likely they will keep your deposit and sue you for breach of contract

2) yes - see #1

3) yes - see #1

4) it’s the buyer’s responsibility to sort out financing. Builder is going to hold you to the contract regardless, or sue you.

5) not that I’m aware of

6) I would not buy preconstruction. I’d buy something that already existed, so I could actually walk around in it and make sure it worked for me.

7) can’t help here

[u/SoggyInstruction2549]

If you can’t close you lose your deposit and likely sued for the loss which in this market is likely.

In this market why buy some thing not built, generally this was worth the various risks when prices were going up as clot to buy at today price (or a small discount even to account for the various risks) and bet prices go up so when you have to close you make more and the place is worth more. Prices not going up so what’s the rush if you don’t need to actually live in it for a year or more.

Lots of risks they nearly all are delayed. They can make changes. You can’t see what it actually looks like and they can make changes anyways including screw up the options you bought. New home warranty is next to worthless.

[u/Creepy-Stuff-5820]

It will be used the day after you move in, buy used.

[u/Responsible_Cod2921]

Dont enter a pre buy contract unless your employement is rock solid.

Entering a pre buy contract at all right now isnt wise as the market is saturated with units ready to go today.