Purchasing a new condo development is not like purchasing a home, or puchasing a re-sale condo. The cost of closing a new condo development deal can be very costly if you don't ask the right questions and make sure you know exactly what your paying for. You should make sure you know 1. The real cost of both closing the deal and then living in that new condo each month 2.Exactly what you will get for the price you pay 3.The rules you will have to abide by.

A Condo in the $200,000 range may carry total closing cost of $8,000 or more. This fee includes not only the expected cost, such as legal fees, provincial and City of Toronto Land Transfer tax but also a few other charges levied on the developer by the municipality which is passed on to you.


Monthly Payments

Aside from your mortgage it's important to pay attention to what you will have to pay each month. Maintenance fee are a monthly fee that you have to factor in also, the average maintenance fee in Toronto 43 cents per square foot, and it probably wouldn't include electricity since most condo have their own hydro meter.

Typical Monthly Expenses:

* Mortgage payments
* Maintenance (this could be condominium fees, or allocated maintenance fees)
* Property and content insurance
* Property taxes
* Utilities

Typical One-time Expenses:

* Mortgage application and appraisal fee
* Property inspection (optional), due at time of inspection, not common in condos
* Legal fees, due at the time of closing
* Legal disbursements, due at the time of closing
* Property survey (sometimes provided by seller), due at the time of closing
* Land transfer, deed tax or property purchase tax, due at the time of closing
* Mortgage interest adjustment (if applicable), due at the time of closing
* Home and property insurance, at closing and ongoing
* Moving expenses, due on the date of move
* PST on High Ratio mortgages


[Excerpt from The Globe and Mail]

What you are getting

If the extra cash required on closing comes as a shocker, so might the look of your suite when you finally move in, says Katarzyna Sliwa of Davies Howe Partners.

“Don’t assume the finishes and fixtures you see in the model suite or artist’s renderings will be the ones you get in your suite,” she says. “They may be upgrades.”

And do not expect your suite to be a mirror image of those model suites even if they have similar layouts. The model suite may be 1,150 square feet, compared with your 1,100.

“You have to ask if those are the appliances or the faucets or the tiles you are paying for or are they upgrades,” she says. “You have to know just what a 10-foot by 10-foot room really looks like.”Purchasers should also understand that occupation and closing dates may well be delayed, Ms. Sliwa adds. “Have your lawyer explain the Tarion [Warranty Corp.] rules governing delays and have a standby plan if your condo is delayed.”


It is always recommended that you speak to your Lawyer about any concerns with the deal that you have worked out during your 10 day recission period.