Short answer
Builder consent fees are only one line. Add legal fees, Realtor commission, GST/HST, income tax, deposit financing cost, upgrades, carrying costs, possible occupancy fees, closing adjustments and the price discount needed to attract an assignee. Calculate the net result and the fallback closing result side by side.
The client problem behind the question
The assignor sees a buyer at a price above the original contract and calls the difference profit. After every cost and tax is included, the assignment may return little or require the assignor to bring money.
A practical Ontario example
Illustration only: A contract bought at $700,000 attracts an assignment offer at $725,000. The $25,000 headline spread is reduced by builder and legal charges, commission and tax. If the assignee also demands a discount because current resale choices are plentiful, the assignor may choose to close and rent instead—but only if financing and cash flow work.
Questions Rajiv would ask before suggesting a route
- What builder fees and adjustments remain unpaid?
- Who pays each side’s legal and brokerage costs?
- Will interim occupancy occur before the transfer or final closing?
- What tax reserve has the accountant recommended?
- What is the cost of closing and holding the unit if the assignment fails?
Practical routes to compare
- Build a written net sheet with best, base and stressed outcomes.
- Obtain the lawyer’s adjustment estimate and accountant’s tax estimate.
- Compare assignment with close-and-hold, close-and-sell and negotiated exit routes.
- Keep an emergency reserve for a delayed consent or closing.
Keep the decisions separate
- Contract and liability: the builder agreement, assignment documents and written consent are for the real-estate lawyer to interpret.
- Marketing and price: a Realtor can assess comparable choices and work within builder restrictions.
- Mortgage: the lender decides acceptable value, income, credit, documents and funding structure. A regulator does not set that lender policy.
- Tax: an accountant or tax lawyer should confirm GST/HST, rebate and income-tax treatment from the actual facts.
Where A, alternative, MIC and private lending may fit
An A lender is normally the first route when income, credit, debt ratios, property and current value fit. Alternative lenders can take a broader view of income or property at a higher cost. A MIC is an institutional mortgage lender and may offer a six-to-twelve-month or longer term, interest-only or amortized payments, open or partially open features, and sometimes a maturity matched to the planned exit. A private lender may also bridge a closing. A short-term approval is useful only when the client can explain how it will be repaid through refinance, sale or other documented funds.
Verified fact and current limitation
Builder adjustments and assignment charges are contract-specific. Tax is fact-specific. Commission and legal fees depend on retained professionals. No single public percentage produces a reliable net-profit estimate.
Source checked 2026-09-03: read the primary source. Builder wording, lender policy, taxes, appraisal and market conditions must still be verified for the file.
Pressure-test the answer
The route can fail if consent is refused, marketing is restricted, the assignee cannot finance, the appraisal is low, payment timing is unclear, tax is larger than expected, documents expire or the assignor remains liable. Keep a closing fallback, calculate the worst cash requirement and involve the lawyer before a contractual deadline is missed.
Documents to gather now
- Original purchase agreement, disclosure statement, amendments and assignment clause
- Builder consent requirements, fee schedule and critical dates
- Deposit receipts, upgrade payments and 90-day source-of-funds history
- Proposed assignment agreement and payment schedule
- Current income, credit, liabilities and other-property details
- Comparable sales, appraisal and lawyer/accountant estimates when available
Related AskRajiv guidance
Continue with builder closing adjustments development charges review, interim occupancy fees condo before final closing.
Get an assignment closing strategy
Use Rajiv’s direct mortgage strategy form. Include the builder deadline and the result you need: assign, close, rent, sell or arrange a short-term bridge.
Source and review
Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, tax, appraisal, real-estate or mortgage approval advice.