What Happens If Your Presale Condo Is Worth Less at Completion?

By Uzair Muhammad, REALTOR® — Real Broker BC · Published 25 March 2026 · Updated 10 April 2026

Presale buyers in Surrey, Langley, and Vancouver are completing in 2026 to find their units worth less than they paid. Here is what you can actually do about it and how to protect yourself.

PresaleProperties.com is the buyer-side representation practice of Uzair Muhammad (REALTOR, Real Broker BC), serving presale and new construction buyers across Metro Vancouver and the Fraser Valley from 3211 152 St, Building C, Suite 402, Surrey BC V3Z 1H8 — (672) 258-1100.

If you bought a presale condo in 2021 or 2022, you might be getting close to completion day. And you might be hearing some scary news — that your unit could be worth less today than what you agreed to pay.

You are not alone. This is happening across Metro Vancouver, Surrey, Langley, and the Fraser Valley right now in 2026. Let's break down what this actually means, what your options are, and how to handle it.

Why Are Presale Condos Worth Less Right Now?

When you signed your presale contract a few years ago, the market was hot. Prices were at their peak. Since then, a few things have changed.

Interest rates went up sharply. Buyer demand slowed down. And a wave of new inventory hit the market at the same time. Vancouver now has over 5,400 completed but unsold condo units — close to an all-time record.

That means your unit might appraise for less than your purchase price. This is sometimes called being "underwater" on your presale.

What Does This Mean for Your Mortgage?

Here is where it gets real. When your presale is ready to complete, your lender will order an appraisal. If the appraised value comes in lower than your contract price, your lender may not give you the full mortgage you need.

For example, say you bought at $650,000 but the appraisal comes back at $580,000. Your bank will only lend based on $580,000. That means you need to come up with the difference — in this case, $70,000 — out of pocket.

| Scenario | Purchase Price | Appraised Value | Extra Cash Needed | |----------|---------------|-----------------|-------------------| | Small gap | $550,000 | $520,000 | ~$30,000 | | Medium gap | $650,000 | $580,000 | ~$70,000 | | Large gap | $800,000 | $680,000 | ~$120,000 |

These numbers are based on what buyers are seeing across Metro Vancouver right now.

What Are Your Options?

You have a few paths depending on your situation.

1. Complete the purchase anyway. If you can cover the gap or have a bigger down payment saved, this might still make sense — especially if you are planning to live there long-term. Real estate in the Fraser Valley has always recovered over time.

2. Negotiate with the developer. Some developers are offering incentives right now, like price reductions, closing credits, or furniture allowances. It does not hurt to ask. Developers would rather close a deal than have a default on their hands.

3. Try to assign your contract. You can try to sell your presale contract to another buyer before completion. But be aware — the assignment market is very slow right now, and you may take a loss. Also, even after assigning, you could still be legally responsible if the new buyer does not complete.

4. Walk away (default). This is the last resort. If you default, you lose your deposit — which could be 15% to 20% of the purchase price. The developer could also sue you for additional losses. This is not a decision to make lightly. Always talk to a real estate lawyer first.

How Can You Protect Yourself Going Forward?

If you are thinking about buying a new presale in 2026, there are a few smart moves you can make.

Buy for the long term. If you plan to live in the home for 5 or more years, short-term price drops matter a lot less.
Keep extra savings. Do not put every dollar into the deposit. Keep a cushion for completion day surprises.
Work with a presale specialist. A good agent will help you read the disclosure statement, understand the contract, and pick projects with strong developers who are less likely to cause headaches.
Lock in your rate early. Talk to your mortgage broker 6 to 12 months before completion so you are not scrambling at the last minute.

Is Now Actually a Good Time to Buy a Presale?

Here is the thing most people miss. When the market is soft, developers offer better deals. We are seeing lower prices, smaller deposits, and more flexible terms than we have seen in years.

The Bank of Canada is holding rates at 2.25% as of March 2026. That is much lower than the peak. And 30-year amortizations are now available for first-time buyers purchasing new builds, which means lower monthly payments.

If you buy smart — in the right location, from a strong developer, at today's lower prices — you could be in a very strong position when the market recovers.