1. Why Buy Pre-Construction in Toronto?

Before you begin the home buying process, consider if buying a pre-construction condo is the right choice for you. Pre-construction properties are ideal for buyers who are looking to have a strong input in the design and look of their next home without doing the renovations themselves. If you are looking into a pre-construction condo, consider that you will be waiting anywhere from a few months to a couple of years to actually move in and take ownership. On the plus side, a longer closing period means you will have more time to save for your down payment.

2. Establishing Your Real Estate Needs and Wants

Whether this is your first real estate purchase or you are a seasoned investor, you will need to establish a list of your needs and wants before you start looking at condos. Square footage, location, access to public transit, and desired amenities will influence the layout and development you choose. If you are buying for the long-term with the potential of marriage or children, consider your ideal room sizes, safety, storage options, school district, and neighbourhood atmosphere.

3. Finding the Right Condo in Toronto

If you have found a promising condo, do some research into the developer to ensure they are reputable. If you aren’t familiar with the neighbourhood, take time during the day and evening to get a feel for the community and residents. Ask about any future developments that may be planned for the surrounding area, as that can impact everything from your view to the community itself.

4. Making Your Down Payment

You will need to make a 20% down payment on your pre-construction condo, which will be broken down into 5% installments over time. You will make your first installment within 10 or 15 days of signing the agreement, then at the 30, 90, and 180-day marks. These dates may change depending on the builder.

5. The Pre-Construction Cooling Off Period

Once you have put a deposit down on your unit, you will have a 10-day cooling off period to think about your decision and make sure your paperwork and finances are in order.

6. The Waiting Game

Delays are common with condominiums, so be sure to plan accordingly if you are currently renting or planning to sell. Once your unit is ready, there will be an ‘interim occupancy’ period where you will be able to move in, but will not own the condo. During this time, you will be paying the builder an amount that roughly equals your mortgage amount plus condo fees and taxes. This is not a mortgage payment as you won’t officially own the condo until it is registered.

7. Pre-Construction Closing and Fees

In addition to your deposit and down payment, you will be paying two months of condos fees towards the condo’s reserve fund. You will also have to pay HST upon closing but may be eligible for a rebate if you plan on living in the unit yourself. Additional builder adjustment costs can include utility hookups, development costs, and HST on appliances.

8. Working with TRB

The best way to learn how to buy a pre-construction condo is to meet with local experts. At times, TRB is able to provide early VIP access to pre-construction condos which allows for lower deposit structures, access to exclusive units and hands-on site visits. Our team specializes in guiding buyers through this process, using our market knowledge and financial background to ensure you feel confident and happy with this exciting real estate investment.