Toronto is one of the world’s cities that have experienced unprecedented growth in the construction industry. There are numerous brand new houses being erected across the city. If you are looking forward to buying affordable Toronto preconstruction condos, you need to read this article to the end.
Even though the real estate market has skyrocketed in the past few years, you can still find an affordable brand new house in areas like the High Park, and Annex. If you travel to the west or east of the city, you will certainly come across an affordable unit to buy. Toronto has plenty of brand new houses you will love and afford. They range from finished units to Toronto preconstruction condos. The units feature three bedrooms, baths, a drive way, and a backyard. Most of the available units in this area are well kept and few of them need an upgrade.
Time and Space condo is a new condo development coming soon at 177 front st in downtown Toronto.
At the junction area, there are flashy finished condos that look pretty and nice. They are suitable for families and feature baths, a parking and a family friendly environment. At the Clairlea Birchmount, you are guaranteed of more value for the dollar you invest. There are plenty of Toronto preconstruction condos whose neighborhood boasts of numerous amenities ranging from shops, entertainment centers and many more. The condos are affordable and are located on pieces of land that vary in sizes.
What to Look For When Buying Preconstruction Condos
When you decide to buy a preconstruction condo, it is important that you get a property that will give you the desired service. Buying a condo that may need to be flipped in a few years may be costly.
If you are an investor who is buying the unit with a hope of reselling, it may be necessary that you buy a property you will be able to sell at a profit as soon as it is completed. Note that there are cases where buyers have been unable to close a purchase just because the location of the unit is unsuitable.
Change in Financial Status
There are many cases where buyers get approved for financing during the initial stages but the lender may refuse to finance the project owing to change in financial status of the buyer.
Tax needs (CRA requirements)
Canada Revenue Agency may impose different rates of taxes depending on the circumstances under which a unit was bought. Because of this reason, it is important that you assess the requirements before you pay for your Toronto time and space condos.
Ways to Protect Yourself
Generally, before buying or signing any pre-construction deal, it is important to ensure that you have the right to assign or sell the property before closing. This right has to be negotiated at the point at which the contract is to be signed. Some of clauses to be included should provide for an opportunity to cancel the contract and payment of a stated amount or penalty in the event of a change in life circumstances such as death, loss of employment, serious injury, or incapacitation. Always choose a deal that allows the buyer to cancel the contract or sell the unit before the closing date.
Mortgage Rates in Toronto
Note that the home buying process is supposed to be easy and as transparent as possible. The trouble is that the process may not be as easy as said if you do not know where to start and what to do. This is why this blog delves into mortgage rate in Canada.
Shopping for the most competitive bank, brokers or lender is key to your home buying endeavor. This is why it is mandatory that we look at the rates charged by the leading mortgage institutions in Canada. At CIBC, you will get a mortgage facility at a rate of 2.84% payable within two years. TD bank charges a rate of 2.29% on its mortgage payable in 2 years. A three year mortgage facility at CIBC attracts an interest rate of 3 years while national Bank charges 2.74 % for a 4 year facility. HSBC offers a 5 year facility at an interest rate of 2.80%
Those interested in long term facilities can talk to the Bank of Montreal which charges 3.74 % interest on a facility to be paid within 10 years. Laurentian is charging a rate of 2.45 %.
Why Should One Compare The Mortgage Rates?
To understand why it is necessary for property buyers to compare the interest rates, it is important to state that not all mortgage rates are equal. They vary in terms and conditions as well as the interest rates. This implies that anyone looking forward for the best rates must be prepared to compare all the available options.
Choosing Between an Open and a Closed Mortgage?
Typically, open mortgages have higher interest rate compared to the closed one. As such, any investor interested in Toronto preconstruction condos is advised to consider the ‘closed’ mortgages that come in both fixed and variable forms. Unfortunately, this loans place restrictions on the amount of the principal to be paid each year. Paying off the entire principal before the set period attracts a penalty such as a 3 month interest charge.
On the contrary, open mortgage will allow one to pay off the entire mortgage any time during the term period. The trouble is that in such a case, you may be required to pay a premium. Open mortgages are suitable for Toronto preconstruction condos investors expecting a lump sum such as an inheritance bonus in the near future.
Opting For a Variable and a Fixed Mortgage
Fixed mortgage rates represent nearly almost 66 % of Canada’s mortgage. The advantage of this facility is that you are protected against the ever fluctuating interest rates. This means that the payment remains constant over the time you are expected to pay the mortgage. On the contrary, the variable mortgages respond to the market behavior. The amount to be paid keeps on changing over time. Thus, a fixed mortgage is stable because the mortgage payment will not change over the period. This security makes the fixed interest rates a great option.
Types of Mortgage Rates Available To All Toronto Preconstruction Condos Buyers
The 1 year fixed mortgage rate: This is a mortgage rate that allows you to select a new mortgage type, mortgage rate and provider at no penalty at the end of one year.
The 5 year mortgage rate: This is a rate that allows you to lock the current low rate. If you think that the interest rates are going to rise in the near future, you may opt for a 5 year term so as to enjoy the current low rate.