Gavin
Active Member
Hey Everyone,
First off, I tried to read through and search the boards as much as possible before posting...so if these topics are covered elsewhere, I apologize for the double-posting.
My fiancee and I are currently renting in the Annex, but would like to enter the real estate market sooner than later. I am in the process of cleaning up a poor credit history (bad decisions in university, OSAP funding withdrawn in my final year, living off of credit cards, etc...) but should be back on track in a reasonable amount of time...and her credit history is spotless, so as co-applicants for a mortgage we should be ok soon enough. However, she is a recent grad so we do need a little time for her to get stable employment and for the both of us to save for a down payment.
That said, we're also completely ignorant about the buying process -- specifically, buying pre-construction. From reading around, this is how I understand the process...but please, correct/clarify me where I'm wrong:
1. You get pre-approved for a mortgage so you know what you can buy;
2. You agree to a deposit amount (5% and up) with the developer;
3. You pay an initial deposit of a few thousand and sign an agreement to purchase;
4. Over the next 60-90 days (depending on the agreement), you pay the remainder of the deposit amount in 2-3 installments;
5. You wait for it to be built;
6. You take occupancy before the building is registered;
7. During the time between when you take occupancy and the building is registered, you pay "phantom rent" to the builder that's roughly condo fees, taxes, and your unit's share of the entire building's mortgage to the developer;
8. Once the building is registered (usually 1-12 months later), you owe the rest of the purchase price to the builder (so, the balance of your mortgage); and,
9. Once the building is registered, you stop paying the phantom rent and you start paying your mortgage.
We will likely (hopefully?) be looking to buy within two years and were hoping you guys could recommend some areas or specific developments that we should be paying attention to. We would like to remain downtown (south of Dupont, east of Roncesvalles, and west of Coxwell), are completely open to transitional neighbourhoods, and would like a two-bedroom condo for, ideally, about $300k or less (we know it will be on the smaller end, but we also know that it's possible -- albeit challenging -- to find units at that price point).
Thanks!
First off, I tried to read through and search the boards as much as possible before posting...so if these topics are covered elsewhere, I apologize for the double-posting.
My fiancee and I are currently renting in the Annex, but would like to enter the real estate market sooner than later. I am in the process of cleaning up a poor credit history (bad decisions in university, OSAP funding withdrawn in my final year, living off of credit cards, etc...) but should be back on track in a reasonable amount of time...and her credit history is spotless, so as co-applicants for a mortgage we should be ok soon enough. However, she is a recent grad so we do need a little time for her to get stable employment and for the both of us to save for a down payment.
That said, we're also completely ignorant about the buying process -- specifically, buying pre-construction. From reading around, this is how I understand the process...but please, correct/clarify me where I'm wrong:
1. You get pre-approved for a mortgage so you know what you can buy;
2. You agree to a deposit amount (5% and up) with the developer;
3. You pay an initial deposit of a few thousand and sign an agreement to purchase;
4. Over the next 60-90 days (depending on the agreement), you pay the remainder of the deposit amount in 2-3 installments;
5. You wait for it to be built;
6. You take occupancy before the building is registered;
7. During the time between when you take occupancy and the building is registered, you pay "phantom rent" to the builder that's roughly condo fees, taxes, and your unit's share of the entire building's mortgage to the developer;
8. Once the building is registered (usually 1-12 months later), you owe the rest of the purchase price to the builder (so, the balance of your mortgage); and,
9. Once the building is registered, you stop paying the phantom rent and you start paying your mortgage.
We will likely (hopefully?) be looking to buy within two years and were hoping you guys could recommend some areas or specific developments that we should be paying attention to. We would like to remain downtown (south of Dupont, east of Roncesvalles, and west of Coxwell), are completely open to transitional neighbourhoods, and would like a two-bedroom condo for, ideally, about $300k or less (we know it will be on the smaller end, but we also know that it's possible -- albeit challenging -- to find units at that price point).
Thanks!