According 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:
- Condition of property
- Square footage
- Number of bedrooms (or lack of bedrooms as case may be)
- Purchasing on “assignment”
- 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.