News   Dec 03, 2021
 199     0 
News   Dec 02, 2021
 3.6K     4 
News   Dec 02, 2021
 1.5K     1 

condo closing question

Yama

New Member
Member Bio
Joined
Nov 14, 2010
Messages
16
Reaction score
0
I purchased a condo from builder. occupancy date is set for March 8 2011.
Do I need a Mortgage for this date or I just pay the balance I owe to builder?
Do I have to open a account for hydro right away?
How long It usually takes the builder to transfer the title to my name?
Can I get a line of credit using the equity of my condo, when I just move in or I have to wait for the builder to transfer the title to my name.

thank you for your response in Advance.
 

AKS

Senior Member
Member Bio
Joined
Aug 5, 2008
Messages
1,449
Reaction score
0
I purchased a condo from builder. occupancy date is set for March 8 2011.
Do I need a Mortgage for this date or I just pay the balance I owe to builder?
Do I have to open a account for hydro right away?
How long It usually takes the builder to transfer the title to my name?
Can I get a line of credit using the equity of my condo, when I just move in or I have to wait for the builder to transfer the title to my name.

thank you for your response in Advance.

Before occupancy, the builder will contact you to find a lawyer. You need to pay another 5% deposit. Total should be 25%. If you had some agreement to pay less than 20%, then you may have to pay the other parts to total 25%.

When you occupy the unit, you should contact hydro immediately. It should be in a hand book with instructions to you given by the builder.

Final closing (name transfer) varies. It could be as short as 2 months or as long as 1 year. You will be basically renting during this time with the phantom rent.

I think the line of credit depends on your credit rating and how much you can borrow. It doesn't relate to your condo. If you leverage your condo, then it's a mortgage I think. Before registration, your unit doesn't belong to you yet. It still belongs to the builder.
 

Hawk

Active Member
Member Bio
Joined
Jan 4, 2010
Messages
114
Reaction score
0
I would get a lawyer soon. He or she will hep you with the specifics. The builder will also be able to give you the answers to most of these questions.

Good luck.
 

gis_guy

New Member
Member Bio
Joined
Sep 21, 2010
Messages
41
Reaction score
0
AKS is right . . . .

A line of credit (or a home equity line of credit, in this situation) lets you access up to 80% of the appraised value (in this case the purchase price b/c it wouldn't have been appraised yet) of your home, less any prior outstanding mortgage charges. Its a good alternative to a traditional mortgage b/c the payment structure is a bit more flexible . . . even as low as just the interest (which I would never recommend). You also have the option of locking it in, but be careful b/c the penalty if you ever need to get out, could be very costly . . . . . as I found out :(

Of course, you wont be able to get one until the property has be registered and transfered to your name
 

Yama

New Member
Member Bio
Joined
Nov 14, 2010
Messages
16
Reaction score
0
what about mortgage

DO I need to get my mortgage finalized before I move in or that can wait till the unit ready to be registered to my name.
I been always in favor of Variable rates. What you guys think.
 

AKS

Senior Member
Member Bio
Joined
Aug 5, 2008
Messages
1,449
Reaction score
0
You can't get a mortgage unless the unit is registered under your name (final closing). Some people have lost their locked in rates in the past because the final closing took too long.

When you move in, it is interim occupancy. You can choose to move in or not, but either way, you're getting charged for phantom rent.
 

Observer Walt

Senior Member
Member Bio
Joined
Apr 23, 2007
Messages
1,860
Reaction score
0
Location
East Mississauga
Hopefully, you had a lawyer review your purchase documents when you originally signed them. That lawyer would be in the best position to answer all of your questions. If you did not consult a lawyer at that time, you should look for one. You don't have to wait until occupancy date.
 

Yama

New Member
Member Bio
Joined
Nov 14, 2010
Messages
16
Reaction score
0
ok

Alright, in my agreement When I purchased I paid 10%. And schedule to pay 10% on closing. SO all I have to do is Get a lawyer to do the closing and Have the 10% ready for the builder.
Is there any ways I can find out How much I will be paying rent to builder? How do they figure Rent/month out. I am guessing its not set a head of time.
 

AKS

Senior Member
Member Bio
Joined
Aug 5, 2008
Messages
1,449
Reaction score
0
You really should contact a lawyer pretty soon. At least 2 weeks before interim occupancy at latest but better to be earlier so they can take a look at your docs.

As for the phantom rent cost. It will vary. Phantom rent usually includes maintenance fee and interest on whatever the balance you are owing. The interest percentage rate used is the 1 year mortgage rate I think (short term rate).
 

Top