Recently, I’ve seen some Ontario condo buyers face an unexpected challenge: their new units are closing at up to 30% above current market value. The root of the problem? Many pre-construction condos were purchased at contract prices that no longer match the realities of today’s market. When it’s finally time to close, banks will only lend based on the current appraised value—leaving buyers short on closing funds if the unit’s worth has dropped since the deal was signed.
These long stretches between signing and closing—thanks to permits, pre-sales, and even labor shortages—can completely upend plans when markets shift. I remember when, not so long ago, developers sometimes canceled deals midstream as costs rose, sparking provincial scrutiny and calls for more oversight. For buyers, the contracts are often tough to navigate, with few chances to back out after the 10-day cooling-off period, unless occupancy dates aren’t met.
After 27 years in real estate, I’ve learned that buying a home—especially a pre-construction condo—shouldn’t feel like a leap into the unknown. My approach is always about making things straightforward, honest, and as stress-free as possible, so you know exactly what you’re stepping into.
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