What is maximum down payment in ON, Canada?

Question

I would like to pay my downpayment as much I can for a new condo, but I was told that it is a law that no one can pay more than 25 % of the price. So I have to pay HIGHER rent as a tenant even I live in my condo and have to wait until the condo will be finished completely and all the owners will move in one after another (probably after Feb. 2008), then builder will deal title transfer, then I can pay the amount I would like to pay.

Please help if any one knows there is such specific law?

Answer 1

I think that you are confusing a deposit to bind the contract with the actual down payment at closing time. Some jurisdictions limit the non-refundable deposit while you are waiting for completion of the property. At closing time, you are free to pay in full in cash if you have that much cash on hand.

I'm trying to figure out what you're talking about "rent" though. When you buy a condo, you own it and don't pay rent. While some buyers may move in and pay rent while the deal is closing -- usually a month or two at most -- as soon as you close any rent would stop. If you are a cash customer your closing should normally go through in a week or two at most so you won't be renting.

You'll get your deed as soon as you close on your unit. You do NOT wait until all units are sold! As soon as your unit has been issued a Certificate of Occupancy the deal can close and you may move it.

I'm not sure what they're talking about with Feb of 2008. Most likely that's the projected date that management of the Homeowners' Association will be turned over to the owners. Generally the HoA is managed by the developer until 50% of the units are sold. Once that target is hit, the deveolper becomes a minority stakeholder and must turn management over to the owners of record.