Toronto Real Estate Blog Downtown Condos » mortgage

read the LARGE print too!

Mark Savel — Mon, 16 Aug 2010 15:44:33 +0000

No two snowflakes are the same… and either are pre construction condo contracts!

With the launch of several new projects this year, I’ve seen my fair share of contracts and with all of them; the same thing remains true “THE DEVIL IS IN THE DETAILS!” It’s for this reason buyers of pre construction condos have a 10 day cooling off period for their lawyer to review the contract. But of course “reading the fine print” is basic and something all should do regardless of the type of contract…the point of this post is for something a bit more obvious! DEPOSIT STRUCTURES.

It’s typical in Toronto for a developer to ask for deposits ranging anywhere from 20%-25% from a prospective buyer. The amount is not given up front, but rather in instalments over a period of time. To better illustrate my point, I’m going to use a purchase price of $300,000 and a 25% deposit structure as an example. By the time the condo is complete and the unit registered in your name, a total of $75,000 would have been given to the developer…but before we pop the champagne and move in, let’s take a look at what gets us there!

At time of signing the contract, a $5000 cheque is given in trust to the developer. If the purchaser decides to proceed after the 10 day cooling off period, the difference of 5% ($15,000) of the purchase price minus $5,000 (meaning another $10,000) is due within 30 days of the initial contract date. So far, a total of $15,000 (or 5%) would have been given…still with me? Great! Over the next 60 and 90 days respectively another two deposits (5% and 5%) would come due bringing the total amount to $45,000 (you’ve now paid a total of 15% of the purchase price to the developer).

In most contracts I’ve worked with, the remaining 10% ($30,000) doesn’t become due until the project has registered with the City and gone through final closing. The timing of when the final 10% comes due is VERY IMPORTANT and here’s why: The initial 15% came from your pocket (your parents, best friend or anyone else that may have been nice enough to lend you the money). Since this is pre construction, no bank will forward you a mortgage to cover the initial deposits since there is no property to secure the loan against. BUT now that the condo is complete, they’ll gladly lend remaining 10% and part of your overall mortgage (provided you qualify of course). This type of procedure has typically been the case with most clients I’ve worked with… until now!

Recently, I came across a project that requires purchasers to give that remaining amount at time of interim-occupancy!!! What that means to you is: the finial 10% (or $30,000 as used in my example above) CAN NOT be financed by way of mortgage from a bank and must be given by you! That is a big chunk of change to pay up if you’re not prepared. Since this is a relativity new change very few people have been affected by it…nor would they even know about it until the project nears closer to completion (possibly 3 years down the road). Check your contracts carefully and make sure you fully understand the obligations you’ve agreed to!

Protect yourself when buying preconstruction. Use a Realtor and Lawyer who have experience with these types of contracts and don’t only read the small print…but the LARGE print tool!

Network Lofts Now Registered!

Mark Savel — Tue, 30 Mar 2010 21:54:19 +0000

Over the weekend I had the chance to check out a cooool loft conversion in the Bloor and Islington area of Etobicoke! Located a few minutes away from the Islington subway station at 2 Fieldway, the newly converted loft was once home to Bell Canada offices. For the past few years, they’ve been working to transform the building into what it is today!

Last week the building finally registered with the City, meaning residents can now sell their units on the open market (ie. MLS). I previewed several units, and EVERY one was totally different. Some had polished concrete floors giving it the industrial look, while others had beautiful thick-plank hardwood floors for a more modern feel! There is roughly 205 units spread out over 12 floors with 10′ ceiling heights for most suites and 15′10″ for the 2 story lofts.

With conversion lofts, residents should often give consideration to noise levels as most of the time builders can only work with what they currently have. At Network Lofts the builders had 10 inch to 18 inch floor slabs for exceptional low noise transition (as per their website). Though I can’t verify the slab sizes myself, I can say that the units were all very quite during our visit! (a big plus)

The lobby was very impressive, with its spacious entrance surrounded by wood paneled walls and big stone accents…pictured below!

We didn’t get to see all of its amenities but original plans called for: His and hers steam rooms in exercise area, guest suite, fully outfitted fitness room with two treadmills, two elliptical exercisers, various free weights and a rooftop terrace for use by all residents for enjoying warm weather and great views that Network Lofts has to offer!

As with most newly completed builds, new listings are coming out daily! If you’re interested in living and being part of the ”network” give me a call or send me an email…I’d love to help!

Sellers, units have appreciated quite a bit since its first launch; contact me if you’d like to know what yours is worth!

Mortgage Minute with a S.O.B. 12/14/09

Mark Savel — Tue, 15 Dec 2009 04:39:51 +0000

Click here to view the embedded video.

Get updated with this week’s mortgage rates, provided by everybody’s favourite S.O.B….Chris Molder!

Mortgage Minute with a S.O.B.

Mark Savel — Tue, 08 Dec 2009 06:24:05 +0000

Click here to view the embedded video.

Chris Molder from SonOfABroker.com is back with another installment of his Mortgage Minute. For a full list of rates, check out his blog.

And So It is…

Mark Savel — Fri, 21 Aug 2009 04:26:59 +0000

Sadly, the dreams of an 80 story tower and Yonge at Bloor are pretty much done…or at least the dream of it being built by Bazis is. Several of my sources have informed me that the land has been sold to an affiliate of Great Gulf Homes. The price paid for the land is unknown and probably won’t be disclosed until the deal closes in mid September. Future plans are also anyones guess. I’ve heard everything from keeping the design (which i HIGHLY doubt) to scraping the whole thing and rebuilding a new concept all together (which more than likely will happen). You can check out the latest story from the Globe and Mail here.

I’ve been by the Crystal Blue project (Bazis’ current development) and was really pleased with how the outside facade is coming along. Looks like that’s all we’ll be seeing in Yonge and Bloor area by Bazis. I just hope the condo gods have greater plans for this corner and that whatever is built, truly pushes the envelope.

Buh bye “Canada’s Tallest Residential Building.” Hello “SomethingElse Towers.” Follow the rest of the 1Bloor story here

I’m Quoting Socrates on This One

Mark Savel — Wed, 19 Aug 2009 03:41:04 +0000

Socrates once said ”All I know is that I know nothing.”… and with the latest media reports on the fate of 1 Bloor, the same can be said. I’m sure by now you’re all aware of the drama surrounding the development of the tower, but just in case your not you can read up on it here.

I nearly fell of my chair when I heard Chris Eby from the CTV News Hour at 6 report that “a last second deal was reached and that eventually 1 Bloor East will rise out of this ruble.” Apparently a deal was reached and a 3rd party has come on board and to help repay the land loan. You can view the clip here http://watch.ctv.ca/news/clip204856#clip204856.

Fast forward to 7:21 pm and we have an article published by The Toronto Star’s Tony Wong where a statement is given from Bazis International stating: “A well established Toronto developer has entered into a binding agreement with Bazis International for the One Bloor property with closing in mid-September.” Of course the new partner isn’t mentioned nore is an actual date in September given for when more information will be known. Bazis puts it like this ” Due to the confidentiality agreement we cannot comment at this time” .

The latest from the press (as of 10:27pm) is The National Posts Giuseppe Valiante article titled “Work on One Bloor to continue after loan deal” What isn’t known is if the original plans the buyers bought into back in 07 will ever emerge?

Although, the one thing I do know for sure is… someone forgot to pay the rent at the 1 Bloor Sales Centre!!

August 18th – New Date to Circle

Mark Savel — Tue, 21 Jul 2009 01:18:45 +0000

Phewwww that was close!! Looks like Bazis lives another day. The National Post (I wrote this post on Monday July 20th and the article i’ve linked to will be printed in the Tuesday paper, fyi just in case the timeline doesn’t make sense) is reporting a deal has been reached between the developer and it’s creditors, for now at least. Details are still sparse, but what is known is “Bazis still owns the property and no receiver has been appointed thus far.” As to what the company can actually do with the site (until court resumes August 18th,2009) is still unknown but more details should follow tomorrow.

I’ve been updating this story as it evolves. Check out my latest updates by clicking here!!
As always, check back often for updates!!