condo-buildingAccording to The Toronto Real Estate Board from July 2015 to July 2016 condominiums in the 905 area code were up 13%. This underlines the interest in purchasing condominiums not only as first-time homes but as investment properties.

How much do you have to put down to buy a condominium? This depends largely on the purchase of the condo. Will it be occupied by you the owner? Is it a secondary home? Is it a rental? What is a secondary home? An example of a secondary home would be a vacation property, a purchase for a child going to school or a place for elderly parents.

How much of a downpayment would you need to make? If it will be owner occupied or a secondary home the minimum is 5% down. If it is to be a rental property, 20% down or more; depending on factors such as:

  1. Location
  2. Condition of property
  3. Square footage
  4. Number of bedrooms (or lack of bedrooms as case may be)
  5. Purchasing on “assignment”
  6. Some older condos are not insurable (Mortgage Insurance- ie. CMHC)

You may have a slightly higher interest rate for a condo but not a huge amount, all things being equal. (Currently, some lenders are charging 5 basis points more for a mortgage on a condo.)

At Champion all we do is mortgages. We are experts at finding the right mortgage for your condo investment. If you would like to discuss your personal situation, give us a call at 1-877-341-1299.