Can’t Afford the Deposit? BMO Will Loan it You!
In order to purchase or “book” a new condo in Toronto, most developments require a 15% (sometimes 20%) deposit, typically payable over the first 6-9 months. On a $300,000 suite, that can be anywhere from $45,000-$60,000. For those of you who are interested in purchasing a unit but are unable to come up with the full 15%, BMO have a solution!
BMO have negotiated with a number of the top builders in the city (including powerhouses such as Canderel Stoneridge, Graywood, Lanterra and Cityzen among others) to offer a very unique product that allows homebuyers to purchase a condo with as little as 5% down! Here’s how it works:
(Assume 15% deposit is required in 3 payments – 5% in 30 days, 5% in 60 days, 5% in 90 days and a final 5% on occupancy)
- You come up with the initial 5% in 30 days
- BMO will pay the 2nd and 3rd installment (to make up the additional 10%)
- You pay BMO an interest only payment for the remainder of the loan at an interest of prime+1% (a $30,000 loan calculates to approximately $85 per month)
- The loan is an open loan and can be paid out at any time without penalty
It’s an incredible program that gives purchasers incredible flexibility. The program is currently available with a number of major developments including DNA3, The Mercer, Backstage and many many more.
If you are interested in learning more about the awesome BMO loan program and what developments you can take advantage of it for, don’t hesitate to contact us using the form below.
