New condo closing next year - questions

[pennywize]

A new condo is scheduled to close on June 2010, bought a unit on the 3rd floor. Scheduled to pay 5% during the offer, another 5% in 3 months, and 10% at the time of closing. Can this 10% next year be included in the mortgage amount?

I'm also assuming that since the unit is on the 3rd floor, we would have to pay "rent" until the entire building officially closes. Would the builder now know how much this "rent" would cost?

[mocha'n'me]

The funds for your mortgage aren't usually forwarded until closing. You would probably need some other access to funds (borrow from family or LOC?)

Usually there is a formula for determining the occupancy fee.

[PolarBear2k]

Ask the builder (someone at head office, not a sales person) and the bank about the 10% at closing.

The occupancy fee (rent) might differ from builder to builder but usually it consists of estimates of the:

monthly maintenance fee
monthly property taxes
monthly interest component on the outstanding balance.


The third one is the weird one. Unless you paid for the condo in full (no mortgage), the amount is calculated on the interest on your mortgaged amount at a set interest rate (usually a ONE YEAR rate).

Whether you will have to pay rent really depends on the size and how fast the condominium will be registered. I'm on the 4th floor of a 35 floor condo and it took 5 months to register. I was paying $300 more each month during occupancy period than I do now.

[pennywize]

Thanks for the answers. Yeah a LOC might be the only option. Thanks again