Guides

If you're looking to buy a pre-construction condo in the GTA, it's important to do your research and be prepared for a potentially complex process. Here's a step-by-step guide to help you navigate the process:

Work with a pre-construction broker: It's recommended to work with a realtor who specializes in pre-construction condos, as they can negotiate beneficial terms for you.

How Pre-Construction Condos Are Sold: The suites are released in two phases - General Broker Release and Public Release, with the lowest launch prices available in the former.

Your Deposit/ Down Payment: You will need up to 20% (or more depending on the development/builder) of the purchase price, spread out incrementally over time.
ex. Requires 5% at signing, 5% 6 months in, 5-10% 1 Year in, and 5-10% at time of closing (or some structure resembling this)

Research: Research the developer's reputation, location, pricing, and other factors that can affect the value of the condo in the future.

Review the Agreement of Purchase and Sale: Ensure that the agreement includes all critical elements, such as deposit structure, unit price, closing costs, and other fees.

Land Transfer HST: HST is actually built right into the builders price. So the builder does the market research on what prices should be and right off the top buries HST 13% into the purchase/ advertised price. If it is not for personal use as a principal residence at closing the buyer will face paying the HST credit they would have received if it was principal residence (+$25,000 approx).

Closing Day: On this day, the property officially becomes yours, and you will need to provide the balance of the purchase price.

Additional Factors to Consider: These include interim occupancy timelines, rental allowance, Tarion warranties, development fees, land transfer HST, closing date, deposit structure, assignment allowance, and the sales procedure.

Benefits of Working with a Realtor: They can provide invaluable guidance, support, and advocacy throughout the purchasing process, ensuring that your best interests are taken care of. Inspection: Have a home inspection done after approximately six months of owning the property to take care of any covered items under the Tarion warranty.

When choosing a realtor to work with, it can be helpful to look for someone who has experience specifically with pre-construction properties. This can help ensure that they are familiar with the unique considerations and potential pitfalls of buying a property that is not yet built.

When reviewing the Agreement of Purchase and Sale for a pre-construction property, it's important to pay attention to details such as the deposit structure, potential fees or charges, and any restrictions on making changes to the unit or choosing finishes during the pre-construction phase.

Buyers should also be aware of the risks involved in buying pre-construction, such as the possibility of delays or changes to the development plans. While a reputable developer will typically work to minimize these risks, it's important to be prepared for the possibility that things may not go exactly as planned. It's also worth noting that pre-construction properties can be a good option for investors, as they offer the potential for appreciation in value over time. However, it's important to carefully consider factors such as location and the overall demand for the property before making an investment.

Finally, buyers should have realistic expectations about the timeline for a pre-construction property. While some properties may be completed relatively quickly, others can take several years to be built and occupied. Buyers should be prepared for a potentially lengthy interim occupancy period, during which they will need to pay monthly fees to the developer before the property is officially transferred to their ownership. Make sure to ask if you can rent the unit out during interim occupancy.

Placing An Offer:

You’ve found the one - fantastic! Now, there are a number of things to consider before writing the offer for your next or first home:

1. Offer Price
2. Deposit - Typically 5%+ of the purchase price due herewith or within 24 hours of offer acceptance.
Make sure funds are available.
3. Terms & Conditions - Included to clarify expectations and protect your best interests.
Most common conditions = financing, inspection, and status review (if condo). Typically about 5 day
conditional periods. When you are fulfilling the obligations of these conditions you remove/ waive
them.
4. Inclusions & Exclusions
5. Closing Date

First, we will conduct a detailed CMA (Comparative Market Analysis) complete with comparable listings and relevant historical data in order to determine the market value of the home.

In a seller’s market, where there is a low supply of homes and high buyer demand, it is not uncommon
for sellers to list their homes below market value and set an “offer date” in order to attract attention and
encourage multiple offers. Don’t worry, we will guide you in making an educated yet competitive offer.

Pricing must always be carefully considered, as overpaying for a property is oftentimes not an option.
Sometimes a pre-emptive or “bully” offer is your best option. This is a firm (unconditional) offer submitted
in advance of the offer date. In this case, you may want to consider having a pre-inspection done. Our
home inspectors will inspect the home in advance of you placing an offer. There are various offerings for
every type of home. 

Once your offer is submitted, the seller may accept, reject, or counter it. Leave the negotiating to me!

Closing The Deal:

Congratulations, your offer was accepted! You will need to transfer your deposit over within 24 hours, so make sure it is in an accessible account.

*Note: Institutions like Simplii and ING don’t have brick and mortar locations. If you bank with them,
you may need to transfer the funds elsewhere so that they can be quickly accessed via bank draft.

It’s also time to satisfy the conditions of the offer, if any. I will help you make the necessary
arrangements and ensure all deadlines are met. Once conditions have been fulfilled or waived, the
deal is firm and pending closing day.

Depending on what you and the seller agreed upon in the contract, you will typically have anywhere from 30 to 90 days to prepare for your move. During this time, there are a few more tasks to complete:

• Hire a legal professional to represent your interests and manage closing documentation.
• Confirm your home purchase with your lender and finalize your mortgage details.
• Obtain home insurance.
• Give notice to your landlord if you are currently renting.
• Book your move; obtain estimates from reputable moving companies.
• Update utilities and transfer services (hydro, gas, water, cable, phone, internet, etc.).
• Update documents and IDs (driver’s license, health card, vehicle registration, passport, NEXUS card, immigration application, etc.).
• Inform the CRA, Service Canada, your financial institution, your investment firm, etc. of your new address.

Your purchase becomes a reality on closing day when ownership is officially transferred to you.
We will do a final walk through of the home 24-72 hours beforehand in order to ensure everything is
in working order. 

At closing, you will complete the final documentation with your lawyer, pay the remaining balances & fees, and collect the keys to your new home!

Make sure you account for the following closing costs:

• Balance of your down payment
• Land transfer tax
• Legal fees
• Title insurance
• Mortgage broker or application fees
• Mortgage insurance (CMHC) fees
• Bank appraisal fees
• Survey fees
• Pro-rated amounts for any prepaid costs
(utility bills, property taxes, etc.)
• GST/HST (if new build property)

In my experience, most closings happen between 2-4pm. This all depends on the lawyers, banks,
and registry office. I recommend you plan on moving in the following day as you will not know
exactly what time the keys will be ready for pick up. All closing related operations are performed between the lawyer who represents you as the buyer along with the lawyer who represent the seller. 

Finally, don’t stress! When the time comes, I will deliver a plan to help you coordinate a smooth closing which includes timely reminders and to do lists for you!

 

Buying a home is one of life’s most significant transactions; there is a lot at stake both financially and emotionally. Thus, there has never been a greater need for a professional Sales Representative. With over 50,000 agents serving the Golden Horseshoe, why choose me?

1. I KNOW THE MARKET
Our team of agents eat, sleep, and breathe real
estate! It’s our mandate to ensure that you’re
educated and informed on current market
trends throughout your entire buying experience.

2. WE DELIVER THE TRUTH
Your happiness is my priority, and I intend
to earn (and keep) your trust throughout the
purchase process and beyond. We will provide
honest, loyal, and objective guidance and
support along the way.

3. I AM AVAILABLE ANYTIME
I am not just 9 to 5. Call, text, or email me
anytime. My goal is to ensure you get timely
responses, always.

4. IT’S FREE
There is absolutely no cost to you when working
with us to purchase your new home. We are fully
compensated by the Seller.

5. WE’LL GET YOU THE BEST PRICE
I love negotiating, and I am highly
successful in getting my clients the best
possible price and terms. That’s our goal - at all
times! We know this is what will create future
opportunities for us to work with you and earn
your referral business.

6. WE’RE A FULL SERVICE BROKERAGE
Our team of sales, administrative, marketing,
and client care representatives are committed to
you from your pre-approval and search process
to your accepted offer and moving day. We also
work very closely with an extensive network of
service partners.

7. TECH-SAVVY AND PAPERLESS
I use only the best technology to assist
with your search and manage your purchase
transaction. I automate everything to ensure
you receive property updates and new listings
as soon as they become available. Plus,
complete paperwork from anywhere.

8. LEVERAGE MORE THAN JUST MLS
My buyers have access to all listings,
including MLS, bank-owned properties, estate
sales, expireds, and coming soons. We work
relentlessly through doorknocking, networking,
and advertising to find you the perfect home.

9. I NEVER MISS A DETAIL
Throughout the buying process, I provide
expert advice on property values, locations,
and more. When we find your perfect home, we
research, analyze, and ask questions to ensure
there are no deficiencies.

10. WE PROVIDE AN EXPERIENCE WORTH
 TALKING ABOUT
My job as a Realtor is to make this process as easy and
seamless as possible for you. I have a system
and checklist for everything in order to ensure a
stress-free experience. Over 80% of our business
is referral based, meaning our clients have had
great experiences & recommend us or keep
coming back.
 

First things first, you will need to get pre-approved. This will give you the comfort of knowing how much you can afford and what your monthly payments will be. It will also protect you against interest rate increases for a period of time (usually 60-120 days). Make sure to get pre-approved, there is a big difference between pre-qualification and pre-approval.

There are hundreds of lenders out there, and partnering with a mortgage specialist or financial institution to help you find the right product at the best rate is key. Independent mortgage brokers tend to offer the most options because they work with more than one bank. However, if you have a good relationship with your bank/ financial institution, contact them first. If you would like me to introduce you to our in-house
broker, just ask.

Documents you will need include:
1. Identification
2. Previous 2 years’ T4s
3. Most recent pay stub
4. Letter of employment
5. List of assets (savings, investments, etc.)
6. Ideal purchase price & down payment amount
*This will differ for self-employed individuals.

The Basics:
Depending on your down payment amount, there are two
different types of mortgages:
• Conventional mortgage (20% down payment)
• High Ratio mortgage (minimum 5% down)

High Ratio mortgages require mortgage default insurance.
Purchases over $1M require 20% down.

From there, you will have two different mortgage
options to choose from:

• Fixed rate mortgage
Fixed rate mortgages offer the security of locking in your
interest rate for the term of your mortgage, and your
payment amount stays the same.
• Variable rate mortgage
With a variable rate mortgage, your payments also remain
the same. Though, when rates go down, more of your
payment goes towards principal and less towards interest.
When rates increase, the reverse happens, and your
amortization may be extended.

I also find it useful to know what it will cost you monthly
to borrow. Play around with the numbers using our handy
mortgage calculator tool in the buyer drop down menu.

DON’T: Forget to account for closing costs! It’s fairly
safe to assume you will need an additional 1.5% of the
purchase price to cover these.

DON’T: buy/lease a car, change jobs, fail to pay bills,
open a line of credit, or make a major purchase during this
time. It could affect your loan approval. If you are planning
to do so, make sure to okay it with your mortgage agent.