Pre-Construction Discounts / Incentives?
Most developers will offer some form of incentives shortly after launching a new project. These incentives vary significantly between projects and developers. Developers usually offer the best incentives prior to or shortly after launching a development. These incentives are meant to drive initial sales. Incentives can be in the form of reduced deposits, discounted pricing, and/or upgrade packages. These early sales are crucial to ensure the developer has financing to begin construction and further market the project. Prices generally increase as more units sell and the development gets closer to completion.
Maintaining a relationship with an agent will ensure you are made aware of incentives early.? Often brokerages are the first to be made aware of new projects and incentives. Developers commonly advise brokerages of their initial incentives so they can inform their clients of the opportunity.
No mortgage requirement during construction
Many are unaware that you do not require a mortgage until you close. This means that your deposit is the only expense you will incur prior to closing. Over the 3-4 year construction period you will benefit from the growth in equity.
Closing
Shortly after interim occupancy, the building will officially register with the city, it’s at this time that your mortgage will kick in and you will have to pay your closing expenses. With pre-construction condos this includes:
Land Transfer Tax (LTT)
Development Charges
Legal Fees
HST Rebatable
