Buying a residential property is not an easy job; many factors need to be considered as a substantial amount is involved. Finance is a crucial element that needs considerable consideration; you must study every available option and weigh the pros and cons of it. Mortgage can be a source of finance for buying a pre construction condo. You need a pre approved mortgage to purchase a pre construction condo. The developers ask for a guarantee for your credit line, and pre approved mortgage is the financial vehicle that assures it. The pre sanctioned mortgage strengthens your credibility, minimizes the probability of default.
Pre approved mortgage
As the construction of the building progress, the developer raises enough funds and may lift some of the financial restrictions. The developer asks for the pre approved mortgage from the buyer within a month or three from the date of the agreement. But it is better to arrange the mortgage in the ten days cooling period because you can void the contract without any obligation if the pre approved mortgage does not validate.
Purchasing a condo is a big decision, and you may change your mind later; the cooling period is a look-back period to mull your decision. The sudden situation can arise, such as a lack of funds, forcing you to step back. The ten to seven days allows you to withdraw from the contract without any penalty, obligation.
Multiple factors influence the applicant`s credibility to secure a mortgage. Credit score, income to debt, employment history are some of those factors. A commitment letters from the developer streamline the mortgage process, as the document exhibits the condo will be prepared within two years or less. The mortgage loan starts from the date of final closing, not on occupancy. The unit is ready, and you can shift to the new apartment; this situation is referred to as occupancy. But the title of ownership is still not transferred to you. In final closing, the deed is registered on the appropriate land registry office, and the title is transferred in favor of the buyer.
Buying Toronto new condos can be life-changing, with ample opportunity for future price appreciation. Many new projects are coming up in Toronto and neighbors. Over a couple of decades, Toronto shows its presence on the global map as a developed city. With the growing economy and urbanization, demand for new condos is also rising.