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Pre-Construction Condos: Investing in Downtown Toronto

In this week’s blog post, we’re delving into the details of pre-construction condos – especially condos built in downtown Toronto – and answering all of your questions about them. If you’ve been wondering if a pre-construction condo is a good idea for you, how to decide on pre-construction versus resale, or the investment benefits of choosing a pre-construction condo, read on!

What is a pre-construction condo?

A pre-construction condo is just that – a condo that has not been constructed yet.

What are the benefits of investing in a pre-construction condo?

-Investing in Toronto pre-construction condos is a fantastic investment. It’s a great way to get into the Toronto real estate market and build equity.

-You get the thrill of personalizing your home to your unique style, while having a brand new home that no one has lived in before.

-You can choose your unit on a first-come-first-served basis. You get to select the view, floor plan, and layout that suit your lifestyle.

-Unlike a resale condo, you don’t have to pay your down payment all at once. When investing in Toronto pre-construction condos, you pay off your down payment in stages over the first year. This gives you more time, flexibility, and control over your finances.

Why are pre-construction condos in Toronto a good investment?

-With rising home prices and shortages in the Greater Toronto Area, you can grow your money quickly if you invest in a pre-construction condo in Toronto. The value of a pre-construction condo increases the moment you take ownership (and even before then), and it generally continues to increase until you decide to sell. This is even truer if you invest in an up-and-coming neighbourhood.

-You get the lowest price possible. Builders and developers are looking to sell units to fund construction, so you get amazing value, and you can also avoid the stress of costly bidding wars.

-Pre-construction condos allow you to break into the real estate market at a slower pace, demand less money upfront, and give you the best appreciation value.

-Pre-construction condos offer better rental and resale value, because people would rather live in a new build rather than invest in properties that need maintenance or extensive renovations, or that have outdated features and finishes.

-The Toronto real estate market is hot right now and you can’t beat the location. Living in downtown Toronto gives you the advantage of being in close proximity to the best jobs, top universities, and all the entertainment options you can dream of. If you decide to sell your condo later on, you’ll have no difficulty finding someone who wants to live in downtown Toronto.

Who should consider investing in a pre-construction condo?

-Anyone and everyone! Pre-construction condos in Toronto are a great investment for young professionals, downsizers, and even families. Many condominiums offer 2-3+ bedrooms, and incredible amenities to suit all lifestyles.

Our upcoming Queen Church condo with Tridel, for example, is located in the heart of downtown Toronto. It’s perfectly situated nearby the Financial District, the University Health Network, the top universities and colleges in the city, and the best in entertainment. Queen Church also offers luxurious amenities that make life simpler and more enjoyable, including a state-of-the-art fitness centre, a pet run, BBQ and fireplace lounge, and much, much more.

Are you considering investing in a pre-construction condo? Are you interested in learning more about Queen Church? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

How Do Assignments Work When Purchasing a Pre-Construction Condo in Toronto?

If you’ve purchased a new condo or are in the market to do so, you may have heard the term “assignment sale” and wondered what assignment sales are and how they work. Today, we’re breaking down everything you need to know about assignment sales.

What are assignment sales?

Assignment sales are a type of sale in which a buyer (assignor) sells their condo contract to a buyer (assignee) before the closing (move-in) date. Assignment sales occur for both homes and condos, however are most prevalent in pre-construction condos.

Why do people sell before their closing date?

When purchasing a pre-construction condo in Toronto, there can be a long wait time between the point of purchasing and the actual move-in date. It can sometimes take years before a condo is built and a buyer can move in. During that time, circumstances may change for the buyer. For example, the buyer may have accepted a job offer in another city, they may have gotten married and had kids and need a bigger space, or they may not be able to afford closing anymore. Another reason could be that the buyer bought the condo in an up-and-coming area and is now looking to make a profit on the sale. There are many reasons why a person may want to sell their pre-construction condo to another interested buyer.

How do assignment sales work?

Assignment sales can work in different ways depending on the builder. Some builders don’t permit assignments or allow them only if they are paid an assignment fee. So having the builder’s approval is the first essential step to proceeding with an assignment.

When a buyer makes an assignment sale, what they’re actually selling is the condo contract – not the condo itself, since they don’t actually own it yet (since it hasn’t been closed). They are passing along their contractual agreement with the builder to purchase the home – their right and their obligation.

The buyer purchases this right and obligation, and must abide by all the terms within the original contract with the builder, who is the original seller. The original buyer must sign an Agreement of Purchase and Sale, including an Assignment Agreement Clause.

The pros and cons of assignment sales

To break it down quickly, here are some of the main pros and cons of assignments.

Pros:

  • Buyers (assignees) can purchase a brand new condo at a lower price
  • The condo’s price/value will likely continue to rise as it’s being constructed
  • Buyers can get into an amazing building that sold out
  • Buyers benefit from all the perks of the original agreement, such as having their new condo be covered by the Tarion warranty program, which offers years of warranty against errors and defects with the condo unit, as well as provides warranties for newly-installed appliances; the original agreement may also include upgrades, credits, and capped developing charges from the builder

Cons:

  • The builder must approve the transaction before it can go ahead
  • There’s less ability to negotiate the price of the home, or the terms and conditions of the agreement, since buyers are inheriting the original purchaser’s contract
  • Buyers (assignees) will be responsible for closing costs, which can sometimes include the education and development levies, Tarion legal fees, and HST on appliances
  • Buyers will also be responsible for paying land transfer tax, municipal levies, legal fees and more

Are you considering investing in a pre-construction condo, and have you considered assignment sales? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Are Pre-Construction Condos in Toronto a Good Investment?


When you’re considering purchasing a condo as a homebuyer or investor, there are many potential prospects and benefits, however deciding whether to buy a pre-construction condo or a resale condo is where things get a bit more complicated. Investing in condos is a great way to get into the real estate market and build personal equity, and fortunately, experts are predicting 2022 to be the year of the condo due to rising home prices and shortages. Rest assured, the condo market is thriving in the GTA, and you can get into the market with a great purchase if you do your due diligence. So, now that you’ve decided to invest in a condo, which route should you go? Should you invest in a resale condo, or are pre-construction condos in Toronto a good investment?

Resale condos are a good idea if you’re looking to move in right away. Pre-construction condos, however, are just that – condos that haven’t been constructed yet. So when investing in a pre-construction condo, you could end up waiting for years for your condo to be built and it’s possible to face delays. Your personal plans could also change during this time. One of the major benefits of purchasing a resale condo in Toronto is that you can move in just days or weeks after you purchase your new home. Another benefit is that you have the ability to actually see the condo before purchasing, so you know exactly what you’re getting.

So what about purchasing a pre-construction condo in Toronto instead – why would you want to do that if it means waiting and not getting to see what you’re buying? Well, purchasing a pre-construction condo is the best way to grow your money, and it also gives you the thrill of getting to personalize your new home to suit your style – not to mention the delight of having a brand new home that no one has ever lived in before.

When you invest in a pre-construction condo, the value increases the moment you purchase, and it continues to appreciate until the day you move in and then eventually sell. Most people prefer to buy new, so from an investment perspective the value of your pre-construction condo will increase more than that of a resale condo, which could end up costing you more in costly repairs and renovations.

When purchasing a pre-construction condo, you’re essentially purchasing a condo that’s unseen, so you want to invest in a reputable builder. Although it can be a bit daunting to invest in something you can’t see, there are great advantages. When you invest in a pre-construction condo you get the lowest price possible. Builders and developers are looking to sell units efficiently to fund construction, so you get incredible value. You can avoid the stress of costly bidding wars. You also get the first appreciation, and if you invest in an up-and-coming neighbourhood, you can see the value on your return increase immediately.

For many homeowners, one of the major benefits of purchasing a pre-construction condo is that you get more options to customize your space according to your wishes and needs as well as your personal style. You can choose units based on a first-come-first-served basis, and you can select the floor plan, layout and view that suit your lifestyle. When investing in a resale condo, you buy the condo as is and whatever changes you want to make will come at an extra cost.

Another thing to consider when choosing to purchase a resale condo versus a pre-construction condo are the fees needed upfront at the time of purchase. In a resale condo, you will need to put down a down payment and acquire a mortgage from the bank, which you would pay over a term, typically 25 years. The advantage of investing in a pre-construction condo is that you don’t have to pay your down payment all at once. You pay it off in stages over the first year, giving you more time, flexibility and control over your finances. Also, if you’re looking to invest in a property to rent out to tenants, if you decide to purchase a resale condo you will need to find tenants immediately to take over your mortgage whereas with a pre-construction condo, you have time to sort out your affairs.

The biggest advantages of investing in a resale or pre-construction condo is that both options are a great investment opportunity, and the value of your condo will continue to increase until you are ready to sell. This is especially true in Toronto right now as the demand for housing and real estate development is continuing to favour upward and vertical expansion.

The main question you want to keep in mind is when you’re looking to occupy the unit. If you’re looking to move in immediately, then resale is the way to go, but it’s important to note the benefits of a pre-construction condo. Pre-construction condos allow you to break into the real estate market at a slower pace, demand less money upfront, and give you the best appreciation value and the most options when it comes to customizing and designing the space based on your needs and personal style. Pre-construction condos also offer better rental and resale value than resale condos, because people would typically rather live in a new build rather than invest in properties that need maintenance or extensive renovations, or that have outdated features and finishes. So, are pre-construction condos in Toronto a good investment? Absolutely.

Are you considering investing in a pre-construction condo? Do you have questions about the difference between resale and pre-construction condos? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Taking a Look at Toronto’s Fall 2021 Real Estate Market Positive Outlook

The pandemic has been a turbulent time for real estate in the Greater Toronto Area (GTA) and Canada at large. Whether you’re contemplating purchasing your first new home or condo, moving to a larger home, downsizing, or investing in real estate, you’re likely interested in the market and in being kept apprised of the latest trends and developments.

According to the Toronto Regional Real Estate Board (TREB), total residential real estate transactions were down 18% last month compared to the year before (9,046 transactions in September of 2021, compared to 11,033 transactions in September of 2020), and total new listings were down 34% compared to last year (just 13,483 listings in September of 2021, compared to 20,441 listings in September of 2020). The sharp decline in listings and smaller decline in transactions shows that there is a lack of supply in the GTA real estate market, so it’s not surprising to see that the average selling price increased 18.3% year over year (for an average of $1,136,280 in September of 2021, compared to $960,613 in September of 2020). Listing days on the market have also decreased (14 days in September of 2021, compared to 16 days in September of 2020).

With new home and condominium prices on a steady upward swing – with no sign of stopping – the best time to buy real estate in the GTA is, as always, as soon as possible.

RBC’s latest Housing Trends and Affordability Report, which measures affordability based on ownership costs as a percentage of household income, rose to a 30-year high in the second quarter of 2021. In Toronto, the report shows that the share of income a household would need to cover ownership costs is, on average, 59.1%.

The share of income necessary to cover the costs of owning a single-family detached home in the GTA is rising rapidly, making this dream more and more difficult for families to achieve. Soaring demand for detached homes during the pandemic made these homes’ prices increase even more. Fortunately, owning a condo apartment continues to be a more affordable option for many families, young professionals, and empty nesters and downsizers. Semi-detached homes and townhomes are also great options that offer much more value than fully-detached single family homes.

The strong real estate market can make getting into the market a challenge, but is good news for home owners and investors. For those considering purchasing a home or condo, the time is now. Toronto’s real estate market is strong and will have many opportunities for sellers, buyers, and investors alike.

Do you have questions about the Toronto real estate market? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

5 Important Steps for First-Time Home Buyers in the Greater Toronto Area

girl laying down looking at homes on sale on her ipad

As a first-time home buyer, the process of finding, financing, and purchasing your first new home or condo can be quite daunting. It requires taking a big leap of faith, and the experience can be accompanied by stress and worry.

If you’re a first-time home buyer in the Greater Toronto Area, we’ve written up a helpful outline of some of the key steps that you should take into account on your home buying journey. By following these easy steps, you’ll find that the process is relatively straightforward. With the right knowledge and tools in your toolkit, along with the right team, you can let go of the stress and embrace this exciting opportunity!

Step #1: Obtain a Mortgage Pre-Approval

A lot of people avoid the step, but acquiring a mortgage pre-approval can save you quite a bit of time. Best of all, getting a pre-approval from the bank is simple. Just set up an appointment with your preferred bank, and they’ll be able to guide you through the process. This can also be done virtually.

The bank will generally be looking at the following:

  • Your income
  • Any debts you have, such as credit card balances or loan payments
  • Your credit history and credit score
  • How much you have saved up for your down payment

Once you’ve completed the pre-approval process, shopping for your perfect new home or condo will be a lot easier and quicker. Having a pre-approval allows you to pinpoint exactly what your budget is and how much your monthly payments will be, putting you in a position where you can find the perfect home for you much more easily, comfortably, and realistically.

couple at the bank meeting for a pre-approved mortgage

Step #2: Get the Right People Involved

The next step in the process of buying your first new home or condo is getting the right people involved. Wouldn’t it be lovely if you could just do it all yourself? Well, you could, but since buying your first home is one of the biggest purchases you’ll ever make and a major investment  opportunity, it’s better to have a full team backing you before you make the final decision.

In any given scenario, these are the people that you’ll need to be in contact with when purchasing your first home or condo in Toronto:

  • A real estate lawyer – for all the legal implications of purchasing your home, and to help you review all legal documentation
  • A lender – for an outline of your financing options on your home
  • A real estate agent – to scour the market for your dream home and to help you with making an offer, negotiating, and getting the best price

photo of a modern looking living room

Step #3: Go House Shopping!

This is probably the most exciting part about buying your first new home or condo – the search! Now that you have a mortgage pre-approval and a team behind you, you’re ready to get into the market. Screening listings online and going in person to check them out is an exciting step in the home buying process. Make sure you’ve refined your criteria and that you know exactly what you want – like number of bedrooms, your ideal neighbourhood, and so on. Once you’ve done this, pinpointing which home on the market suits you will be a breeze.

person signing the paper work and getting the keys to the home

Step #4: Submit Your Offer

So, you’ve found your dream home or condo in Toronto and now it’s time to take the big step of making an offer. Ideally when you submit an offer it should be in writing, which automatically becomes a legally binding document. It will cover things such as the price you’re prepared to pay, how much down payment you’re willing to put down, the closing date, and any other things you and the seller have agreed upon.

couple receiving the keys to their new home from the real estate mortgage

Step #5: Closing and Moving In

There’s only one thing that’s more exciting than shopping for your new home – moving in! Your closing date is the date that you can move in to your new home or condo. The process of closing the sale and having you become the owner is straightforward, and most of it will be handled by your real estate lawyer.

Moving in means that it’s time to start painting, decorating, and making your new home or condo truly yours. What could be more exciting than that?

Are you a first-time home or condo buyer in the GTA? Questions? If you need support, join us on our social media pages (Facebook, Twitter and Instagram) and reach out!

10 Things to Consider Before Buying a New Townhome in North York

Buying a new home, townhome, or condo is a big investment and a decision that will impact your and your family’s lifestyle for years to come. If you’ve settled on the idea of buying a townhouse in North York, this blog post is for you.

Townhomes are a great option for families who are looking for their own home – with the spaciousness and privacy of a detached home – but with all the convenience and ease of condo living. As we outlined in a previous blog post about the benefits of townhome living, townhomes typically include multiple floors, designated parking spaces, and a shared wall with another home or homes. Townhome communities usually include shared communal spaces and are generally regulated by a homeowners’ association, which ensures that community maintenance and upkeep are taken care of and that everyone in the community abides by certain rules or guidelines. The benefits of buying a townhome include cost savings and affordability, amazing locations, single family living without the maintenance, a community vibe, and stunning shared spaces.

Not sure what the differences are between a townhome and a condo when it comes to home ownership, legal statutes, and privacy? Check out our blog post “Townhomes vs. Condos: Do You Know the Differences?

If you’re going to buy a townhome specifically, there are unique considerations that you should take into account before making your decision. Here are 10 things to consider before you buy a new townhome in North York:

#1: Your Budget

First things first: before shopping for a townhome, get a mortgage pre-approval and know the budget that you’re working with. This will help you to shop smart, to not fall in love with properties that are out of your means, and to be able to act quickly once you’ve found “the one” (you’ll know it when you find it!).

Townhomes often offer good affordability because they’re less expensive to build compared to single detached homes, due to the high land costs in the Greater Toronto Area.

Using a mortgage affordability calculator is a good place to start if you’re not sure of what your budget is.

#2: Where You Want to Live

Location, location, location – it matters! Before buying a new townhome in Toronto, consider its location and if it’s in an area that you would truly like to live in. Things to consider about a neighbourhood include:

  • Its proximity to major highways and transit options such as buses, subway or light rail transit (LRT) – both existing and upcoming/under construction are important to consider
  • The schools in the area (their quality and whether there are options for French Immersion or Montessori, if you’re looking for those)
  • The proximity of other community and family-friendly amenities such as daycares, libraries, community centres, restaurants, shops, grocery stores, salons, movie theatres, museums, attractions, and so on
  • Its walk score and how many places you would be able to walk to on a daily basis (as well as whether or not the neighbourhood is pedestrian-friendly)
  • Its bike score and how many nearby parks/green spaces there are to explore
  • How close or far it is from your work, your family or friends’ homes, etc.

#3: Your Desired Lifestyle

How do you want to live? Do you enjoy walking to nearby shops and restaurants, or biking along natural trails? How do you get to work – walk, take transit, or drive? Do you have a family? How many kids? How about a dog? How much free time do you have on a typical weekday? How do you like to spend your weekends? All of these questions will have an effect on the type of lifestyle that you like to live.

Low-maintenance living can be yours with a townhome purchase, although townhome owners do have more maintenance to take care of than condominium or apartment owners. Because they’re smaller lots, townhomes are usually quite easy to maintain – and you won’t have to worry about exterior maintenance such as clearing snow or driveway repairs.

Many busy families today love the idea of maintenance-free living. A townhome lifestyle can give you more time to focus on what matters most: spending time with your family.

You’ll also want to find a townhome community that has a vibe that matches the lifestyle you’re looking for. Are the homeowners social and neighbourly, or do they stick more to themselves? Are there community events? Take these factors into consideration before buying a townhome.

#4: Homeowner Fees

Townhomes that have communal areas and shared common elements typically have a homeowners’ association, which is responsible for managing the neighbourhood’s common areas such as roadways and parks. If there’s a homeowners’ association, there will be fees associated with the management of these shared elements.

Before choosing a townhome to purchase, you’ll want to know whether it has a homeowners’ association and what the monthly fee costs, as well as what it covers or doesn’t cover. Make sure to factor this cost into your financial calculations and monthly budget.

For example, at our Bartley Towns community, the townhomes share a common element – the roadway – and so there is a monthly maintenance fee, although it’s quite low at just $113.95 per month.

#5: Mortgage Rates

Make sure you’re up to date on all the latest mortgage rules and regulations and take your time shopping around for the best rate. It’s always a good idea to compare mortgage rates from at least three different lenders.

#6: Community

When you buy a townhome, you don’t exist on an island – you become part of a community. This goes beyond the location or neighbourhood. A community consists of the people who live in the neighbourhood and the unique fabric that they weave together. Is the community diverse, friendly, and accessible? Do neighbours say hello to each other and maintain relationships? Do you get a good feeling when you walk through the community and when you visit the local shops? Find a community that feels a bit like home already, and before you know it you’ll be an integral part of it.

#7: Privacy and Personalization

Townhome communities have various degrees of privacy, based on the townhomes’ construction (how thick the walls are and how well they are sound-proofed) as well as the layout of the townhome designs (whether they’re stacked or not, for example). Make sure to talk to the builder (for a new townhome build) or neighbours (for an older build) to get an idea of what you can expect and to see if it suits your lifestyle.

You’ll also want to know what the rules are in terms of personalization, both to your new townhome’s interior and the exterior. Many townhomes have rules about what changes you’re allowed to do to the home’s exterior, for example.

#8: Style and Design

Just as you’d explore the features and finishes of a condominium or detached home before buying, you’ll also want to see if a townhome’s design suits your style before making the plunge. Details like flooring and kitchen countertops can be costly to replace, so you’ll save money and time if you purchase a home that you love right off the bat.

You’ll also want to consider the home’s layout and make sure that the floor plan works for you and your family.

#9: Amenities

Many townhome communities come with shared amenities or communal spaces such as driveways, roadways, parks, and sometimes even pools, gyms, or saunas. Determine which amenities are important to you and worth the extra cost, and then check out which amenities the townhome you’re looking at has.

#10: Builder

Lastly, know your builder. Buying a townhome from a reputable builder with a history of building and developing exceptional communities will secure your investment and put your mind at ease.

BAZIS has a long reputation of designing luxurious living spaces with the utmost attention to detail. Being able to successfully combine visionary architecture and design with marketing and construction has turned BAZIS into a reckoning force in pronouncing the city’s landscape.

The company is known for the unique architecture and high standards of luxurious finishes of its various residences. Knowing that each of BAZIS’ developments is crafted with exquisite design, superior location and elaborate amenities will give you peace of mind.

Make sure to follow BAZIS on social media (Facebook, Twitter and Instagram) for more tips, info, and industry updates.

Canada’s Changing Mortgage Rules: What You Need to Know

Girl signing the mortgage papers for her new house

The ease with which new home, townhouse or condominium buyers can get a mortgage fluctuates over time depending on borrowing limits, interest rates, insurance rules and more. If you’re thinking of buying real estate, you’ll want to know the latest market news and updates. The Canada Mortgage and Housing Corporation (CMHC) recently announced changes that may affect your ability to get a mortgage. This comprehensive blog will cover all the new rules and everything you need to know if you’re considering applying for a mortgage in the near future.

Canada’s New Mortgage Eligibility Rules 

In response to the COVID-19 pandemic, the CMHC announced changes to the eligibility rules for mortgage insurance in June 2020. The new rules came into effect on July 1, 2020.

As the COVID-19 pandemic has affected millions of Canadians and has heavily impacted the housing industry due to widespread job losses, businesses closing and a temporary drop in immigration, the CMHC responded by changing its underwriting policies for insured mortgages. These rules were designed to protect Canadian home buyers and to reduce risk.

According to the CMHC, the following changes will now apply for new applications for homeowner transactional and portfolio mortgage insurance:

  • Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to its standard requirements of 35/42;
  • Establishing minimum credit score of 680 for at least one borrower; and
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

In effect, the new mortgage rules lower the amount of debt that you are able to carry (as an applicant for an insured mortgage), require you to have a higher credit score than before in order to qualify for CMHC insurance, and require that you use your own funds for your down payment, rather than borrowed funds.

Here is a more detailed breakdown, as summarized from MoneySense:

Change 1: Less Debt as a Percentage of Gross Income

Old rule: If a buyer had a good credit score and reliable income, they were previously able to spend up to 39% of their gross income on housing (which includes their mortgage, property tax, heating  bill and half of condo fees), and they were allowed to borrow up to 44% of gross income once credit card, car payments and other loans were included.

New rule: Now, all home buyers are limited to spending up to 35% of their gross income on housing, and can only borrow up to 42% of gross income once other loans are included.

Change 2: New Minimum Credit Score Established

Old rule: Previously, in order to qualify for an insured mortgage, at least one borrower (or their guarantor) had to have a minimum credit score of 600 (which is only considered “fair”).

New rule: Now, the minimum has been raised to 680 (which is considered “good”). Not sure what your credit score is? You can check it for free online.

Change 3: No More Borrowed Down Payments

Old rule: Previously, home buyers could use unsecured personal loans, unsecured lines of credit and even credit cards toward their minimum down payment. (The minimum down payment is 5% for houses valued up to $500,000 and 10% of the amount over $500,000, up to $1 million.)

New rule: Now, borrowers must provide the down payment “from their own resources,” CMHC says. Basically this means that home buyers must use their savings, equity from the sale of a property, a non-repayable financial gift from a relative, funds borrowed from other liquid financial assets or against other real property, or a government grant.

The mortgage stress test is staying the same. This test requires borrowers to prove that they can still make their monthly mortgage payment if interest rates rise.

How the New Rules May Impact You

These rules make it safer and more risk-free to hold a mortgage. Homeowners will have fewer worries about being approved for a too-high mortgage that may become stressful to uphold over time. Many Canadians have over-leveraged themselves to afford the home of their dreams, which can cause anxieties and the very real risk of defaulting on your mortgage and foreclosure.

Even before the COVID-19 pandemic hit in March, mortgage delinquency rates (the rate at which homeowners failed to make mortgage payments in accordance with their loan agreement) were at the highest they’d been in nearly a decade. According to Equifax Canada, the percentage of Canadians who were three or more months behind on their debt payments in the final three months of 2019 was 1.2%, an 11% jump compared with the same period in 2018.

The Benefit

With the debt that Canadian households have accumulated rising, getting a mortgage that’s within your means is just the smart thing to do.

“These actions will protect home buyers, reduce government and taxpayer risk, and support the stability of housing markets,” said Evan Siddall, CMHC’s President and CEO.

If you’re not in the high-risk category of new home buyers, these rules may not affect you at all. They’re also beneficial in that they reduce the number of new home buyers who will be able to enter the market, which is expected to slow demand and balance out home prices.

And with today’s historically low interest rates, it’s a great time to jump into the market. You’ll be able to save on interest and have lower monthly mortgage payments, putting more money in your pocket amidst the general financial uncertainty that Canada and the world are currently experiencing due to the COVID-19 crisis.

Make sure to follow BAZIS on social media (Facebook, Twitter and Instagram) for more news, info, and industry updates.

Townhomes vs. Condos: Do You Know the Differences?

new townhome development in Toronto - Bazis

When buying a new home in Toronto or any other urban area, many of the options on the market are either townhomes or condos. These two types of housing often elicit many questions from potential homeowners and bring up many points of confusion, especially when it comes to homeownership and shared/communal spaces. This blog post will break down the differences between townhomes and condos and will help you determine which one is best for you and your family.

First things first. Most people understand that townhomes (or townhouses) are individual houses that are built side by side, with one or two walls of each home being shared with the home next to it, whereas condos are a type of home that are often an apartment within a larger complex or building (although they can take other forms, including townhomes!).

Here are some important differences between these two types of home:

Ownership

With a condo, you own the interior of the residence (your unit) only. Exterior parts of the residence, such as the building itself and the outdoor grounds, as well as communal areas such as gyms, party rooms, and rooftop BBQ areas, are owned by the condo association. Condo associations represent the condo owners and their interests. They’re run and funded by the condo residents and also have boards of directors. The role of the boards is to organize regular meetings, establish and maintain budgets, and enforce rules and regulations relating to the condo. If you’re a condo owner, you, therefore, are a joint owner of the communal and common areas. This means you will have to pay a monthly fee.

New townhomes in Toronto can be either freehold or condominium. If they’re freehold (like our upcoming Bartley Towns community of new luxurious townhomes at Eglinton and the DVP), that means that you fully own the house and also the land on which it is built, as well as any yard or deck surrounding it (similarly to how homeowners of detached homes own their homes and yards outright). Freehold townhomes do not have any monthly maintenance fees.

Condominium townhomes, by contrast, do not include land ownership. Similar to the condo apartments discussed above, residents only own the interior of their home, and the land on which the home is built – as well as the common areas surrounding it, if applicable – are jointly owned amongst all owners. This ownership is again managed through a condo association and involves a monthly fee.

pre construction townhomes Toronto

Legal Statutes

Condos are governed by legal statutes, whereas townhomes are not. This means that condo owners have less autonomy since they’re subject to the bylaws outlined by the condo corporation. Residents may not be able to make changes to their homes and may face restrictions regarding the type of exterior decorations they’re allowed to put up, whether or not pets are allowed, rules regarding common areas’ use and open hours, garbage and recycling rules, and also whether or not they’re allowed to rent out their home.

By contrast, owners of freehold townhomes are entirely free to do whatever they like with their homes.

Privacy

Condo owners generally experience a lower level of privacy, especially condo apartments, since they live in close quarters with many other residents and share communal entrances and exits. Owners of new townhomes in Toronto, especially freehold townhomes, are more likely to have a greater sense of autonomy, privacy, and independence.

new townhomes for sale in toronto

A Summary of the Main Differences

To recap: condo owners only own the inside of their homes, and they’re joint owners of the building’s exterior and communal areas. Townhome owners may have the same situation if the townhome is a condo. For freehold townhomes, however, residents fully own their house and also the land it’s built on and the surrounding yard or deck. Freehold townhomes do not have maintenance fees, while condos do. Condos are governed by legal statutes, whereas townhomes aren’t. This means that owners of freehold townhomes have more autonomy. Lastly, people who live in freehold townhomes generally experience a greater degree of privacy and independence.

Questions? Get in touch by sending us a direct message on social media (Facebook, Twitter, or Instagram) or contact us at 905-532-0435. And make sure to register for our upcoming Bartley Towns community if you’ve decided that townhome living is right for you!

Toronto First-Time Home Buyers Could Get a Break

first time homebuyers

2019 Federal Budget Provides Incentives

A recent budget released by the feds may make buying a home a little easier for first-timers. Buying a home remains a solid investment in the future and millennials want to gain a foothold in the marketplace. This is particularly true in Canada’s biggest cities, including Toronto. Continue reading