Knowledge centre
A builder delay can outlast the rate hold, appraisal and income documents. Even if the original approval looked firm, the lender may need a new application, updated credit, employment, bank statements and valuation before advancing funds. Reopen the file early and avoid job, debt or down-payment changes before closing.
A low appraisal usually means the lender calculates its mortgage from the supported value, not automatically from the builder purchase price. First verify the appraisal and ask whether a lender has a project-specific blanket appraisal or approved-project program. Then calculate the exact cash shortfall and compare A, alternative, MIC or private options with a realistic exit.
The HST result can change depending on who buys the property, who first occupies it, whether it is a primary residence or long-term rental, and whether the builder credited a rebate in the price. Tell the lawyer and accountant the true intended use before signing and again before closing.
The purchase price may not be the final amount needed on closing. Builder agreements can pass through development charges, utility connections, levies, Tarion enrolment, legal or administrative items and other adjustments. Your lawyer should identify what is capped, uncapped, credited or still uncertain before the cooling-off period ends.
Only if the agreement and builder permit it, and usually subject to consent, fees, conditions and tax consequences. An assignment is not a guaranteed exit from a purchase you can no longer close. Have a lawyer and accountant review the contract and tax position before marketing or signing anything.
Interim occupancy means you may live in the unit before the condominium is registered and title transfers to you. You pay the builder an occupancy fee, but those payments do not normally build mortgage principal or ownership equity. Budget for this period separately from the mortgage that begins at final closing.
Treat tentative occupancy as a planning range, not a guaranteed move-in date. Track every builder notice, distinguish occupancy from final closing, and make housing, rate-hold and cash-flow plans that can survive a delay up to the outside occupancy date.
Deposit protection is not the same as a guarantee that every dollar will be returned in every dispute. Confirm that the builder is licensed, understand who holds each payment, obtain receipts, and have a lawyer compare your deposit schedule with the protection that may apply to your home type and purchase price.
Use the 10-day cooling-off period to have an Ontario real-estate lawyer review the agreement and disclosure statement, while your mortgage broker stress-tests affordability and future qualification. A sales-centre worksheet or present-day pre-approval does not remove the risks hidden in a closing that may be years away.
Give the Realtor and lawyer accurate information and documents. Do not hide a concern or guess whether disclosure is required. Latent-defect law is complicated, and the seller should obtain legal advice when the obligation is uncertain.