The towers rising around the Vaughan Metropolitan Centre mean buyers in Vaughan now face a choice that used to be a downtown-only question: buy from a builder or buy resale.
How pre-construction works
You sign an agreement years before the building is finished, pay a deposit in stages (typically 15 to 20 per cent over the first year or two), and take interim occupancy when your unit is ready, paying an occupancy fee until the building registers and your mortgage begins. Ontario gives buyers of new condos a ten-day cooling-off period after signing to review the agreement and walk away.
What to read carefully
- Closing adjustments. Development charges, utility connections and Tarion fees can add tens of thousands unless capped in the agreement. Negotiate caps.
- HST. New homes carry HST; the rebate is usually assigned to the builder if you will live there, but investors must pay it and claim the rental rebate later.
- Assignment clauses. If you might sell before closing, you need the right to assign, and you need to know the fee.
- Mortgage timing. Your approval must hold years later, at whatever rates and rules apply then.
Why resale can win
You see the actual suite, the actual view and the actual maintenance fees. You close in weeks, not years. In a soft market, resale units in newer VMC buildings can trade below the price of the same layout in the tower next door that has not registered yet.
Why pre-construction can win
A locked price with a small deposit, a brand-new unit, a full warranty and the ability to choose finishes. In a rising market that leverage is powerful.
We track occupancy dates, fees and resale activity building by building at VMC and downtown. Ask us before you sign either kind of agreement.
Thinking about a move? Get a request a home evaluation, browse our listings or talk to the team.
