What will happen if you can't arrange a mortgage for a commercial property (condominium)? So far have paid 30% of the purchase price via deposits as per the agreement. What will happen if I inform the builder that I can't arrange a mortgage. What will happen to the monies I have already paid? Went through the sale/purchase agreement...there is nothing that talks about this situation. I have made all the deposits on time. Now closing date is soon and no luck in getting a mortgage. Pre-approval of a mortgage was not required by builder so none was obtained.
Advice Needed-Unable to Get Mortgage for a Commercial Property After Paying Deposits.
- Thread starter Kenny-sauga
- Start date
Get a buyer for your agreement or ask the owner take back a mortgage. Or they keep the 30% dp. If condo is sold at a loss they come after you for the difference. Is condo registered? If not you pay a occupancy fee until title is available to register a mortgage.
Occupancy closing is done. Occupancy fee is being paid monthly, no issues on that payment either.
What kind of registration your are referring to?
What kind of registration your are referring to?
^ Registration for the condo corp.
I think one thing that I could use some clarity on is do you want to close? I'm guessing so - have you only tried the banks or the alt. lenders as well? If you can prove ongoing payments you might be able to get a more expensive mortgage and build credit to refinance with a bank?
I think one thing that I could use some clarity on is do you want to close? I'm guessing so - have you only tried the banks or the alt. lenders as well? If you can prove ongoing payments you might be able to get a more expensive mortgage and build credit to refinance with a bank?
Only tried my local banks. Did not look for an alt. The guy at RBC promised and then bailed out! TD does not want commercial, at least my local branch. I should have looked for alt but basically screwed by RBC promise. Have enough is dividend paying stocks in C$ and US$ to pay off in one go, but that does not make a good financial decision.
What is imminent is the closing...where titles are transferred from builder and no mortgage. I was banking on low interest rates as well.
What is imminent is the closing...where titles are transferred from builder and no mortgage. I was banking on low interest rates as well.
Check with this company! They specialize in these deals https://secure.dominionlending.ca/?app=9934&lang=en
I hope you have a licensed real estate agent help you on this. Commercial transaction often includes conditions such as financing, free of environmental issue, free of health and safety issue. Commercial takes longer for Mortgage to approve because most lender will need those said issue addressed to get the best rate. When unable to secure Mortgage for the lower/best rate there are other lenders who will finance the loan but at a higher borrowing cost. With those guys, their requirement will be lax and easier to be approved.
I never seen a firmed offer on a commercial purchase, but I have not seen a commercial transaction without a licensed real estate agent. Question like this is best referred to that person.
I can tell you this, if it's a residential purchase and you firmed up the deal to secure the bid; most likely you've waived your financial condition. If so, then all deposits made have a chance of losing and the sellers can take you to court to get the rest through the court system. Rarely comes to that because your real estate agent will protect you through their own errors&omission insurance. I'm a licensed Mortgage agent. PM if you are in trouble
But since you are buying from the developer; I hope you read the agreement you've signed on. Read it again and you can find the options available to you. That is a problem when buying from developers but the advantage is that you are buying something that will be worth far more than your purchase. In your case, read your documents or speak to real estate agent if they can help. That's what they are for anyways
I never seen a firmed offer on a commercial purchase, but I have not seen a commercial transaction without a licensed real estate agent. Question like this is best referred to that person.
I can tell you this, if it's a residential purchase and you firmed up the deal to secure the bid; most likely you've waived your financial condition. If so, then all deposits made have a chance of losing and the sellers can take you to court to get the rest through the court system. Rarely comes to that because your real estate agent will protect you through their own errors&omission insurance. I'm a licensed Mortgage agent. PM if you are in trouble
But since you are buying from the developer; I hope you read the agreement you've signed on. Read it again and you can find the options available to you. That is a problem when buying from developers but the advantage is that you are buying something that will be worth far more than your purchase. In your case, read your documents or speak to real estate agent if they can help. That's what they are for anyways
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