Good to Know

Mortgage Matters: New Construction Builder Purchases

Written by Marisa Parise

Imagine the ability to design your own home in the comfort of a New Construction Builder site.  It’s empowering to choose the model of your home and floor plans to suite your specific living preferences. If you feel a bit intimidated purchasing off builder plans try to locate a similar model home to view or map out the floor plan in an existing home. There are many advantages to purchasing in advance such as time to save your down payment, excel in your employment for a higher income and allow time to purchase your home contents.

The purchase agreement is lengthy and there are many clauses you need to be informed of, your lawyer should review the entire contract to discuss any concerns.  A few common clauses that are reviewed are assignment clauses, Tarion Warranty, closing date delays, capped utility installations, upgrades, grading levels and HST implications.

As these purchases are completed well in advance, upto 2 years it is imperative that you monitor Real Estate market value trends, your mortgage qualifications and any material changes. As this is a legally binding agreement you must monitor risks ongoing as circumstances can change without notice.

If you have purchased a New Construction high rise condominium unit or a condominium property the closing date could be much longer than 2 years away. These properties have “occupancy dates” whereby the builder charges you rent while you occupy the unit awaiting the registration date, which is the final closing date. This cost must be factored as you cannot finance this cost and the builder may provide short notice of the monthly rental cost to occupy. Also the time in between your “occupancy date” and “final registration” date could take a few months to a few years.

A competent, dedicated Mortgage Professional will withstand the test of time to fulfill this purchase and monitor the market trends with you along this journey.

Marisa logoMarisa Parise is a Mortgage Broker with over 30 years of experience in the financial industry. This Bolton based brokeris proud to use her established network of over 50 lenders to service her clients residential, industrial and commercial financing. This enables her to obtain customized products, competitive rates, flexible options, maximum pre-payment options and quick response times. Her extensive expertise can resolve any mortgage related inquiries and provide a clear understanding of best suited options. For your mortgage solutions Marisa Parise can be reached at save@marisamortgage.com or 416-305-SAVE (7283) or learn more on her website MarisaMortgage.com

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About the author

Marisa Parise

Marisa Parise is a Mortgage Broker with over 30 years of experience in the financial industry. This Bolton based brokeris proud to use her established network of over 50 lenders to service her clients residential, industrial and commercial financing. This enables her to obtain customized products, competitive rates, flexible options, maximum pre-payment options and quick response times. Her extensive expertise can resolve any mortgage related inquiries and provide a clear understanding of best suited options. For your mortgage solutions Marisa Parise can be reached at save@marisamortgage.com or 416-305-SAVE (7283) or learn more on her website MarisaMortgage.com

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