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Fees That Purchasers of Pre-Construction Condos in Toronto Needs to Pay

codo fees purchaser

Purchasers of pre-construction condos in Toronto are obliged to pay for specific fees depending on the properties they are going to purchase. These fees are very essential as it offers convenient and profitable way in order to save huge amount of money compared to other purchasing process which allows you to spend huge amount of money just to make the process simple and easy. To give you an idea with some of the fees that purchasers need to pay, here are the lists of some of the fees that you need to aware of and these are as follows:

 

  • Occupancy Fees

If you are going to transfer in your condo during the period of interim occupancy, you are required to pay to the developer of its equivalent rent before taking its ownership. The amount you are going to pay is primarily based on the calculation comprising the maintenance fee, tax contribution monthly and the interest charge of the developer in the unpaid aspect of the purchasing price. The amount of money you are going to pay is also considered to be called as phantom rent which doesn’t go towards the mortgages and doesn’t even pay your debt. This rental payment only allows you to pay for the properties interest on the builder.

You also need to have in mind that mortgage lenders will not completely activate your mortgages until you already have the title of the property. Without the mortgage that can help you in carrying out your property, you can make better income or obtain saved phantom rent in advance. This is essential in order to cover the period of interim occupancy fees which can take you months or years. In this sense, you are burning through your money without placing any dent to the debt you obtained at least a couple of months before transferring.

 

  • Harmonized Sales Tax (HST)

As a purchaser of pre-construction condos in Toronto, you are required to pay for the harmonized sales tax or the HST on all types of residential properties you are about to purchase in Toronto. But you need not to pay for this particular fee if you are going to purchase re-sale properties in the place.  According to some professionals and specialists in HST fees, you can’t always count on sizeable return unless you are going to be aware of some HST rebates in relation to the property you are going to purchase. For those who are planning to purchase pre-construction condos in Toronto, you are obliged to pay full 13% to its builder with adjustment. The rebate fees vary depending on the properties price on certain circumstances. As a purchaser or buyer of the pre-construction property, you can’t escape on paying for the HST although the amount that you are going to pay will be based from your decision of either flipping or renting the property out.

 

These are two of the most significant fees that pre-construction condos purchaser needs to pay before taking the full ownership of the property. Knowing these fees in advanced is one way of arousing your readiness with all the possible fees you need to spend money with towards obtaining or moving on to the property you have chosen.

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