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TheKingEast said:
You can cap certain things but it appears more and more builders are unwilling to set reasonable caps. If you cap the levies, they'll add costs elsewhere. There are a few that are very good with the costs, but more and more are really going for the jugular.
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what sort of costs can they bill you for? With houses its different but how can they just add costs to a condo after you purchased based on a price. Forget it as I read other posts and see the costs
 
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It's baffling that with a straight face you are expected to keep 20-30k+ in cash for closing costs....and they can't be looped into the mortgage. The insanity is at an all time high in this boom. Everyone with their hands in the cookie jar and the purchaser gets fucked.

Hate to see people get taken advantage of like that.
 
Closing costs are really important. it requires long term analysis and should be a part of your purchase budget. But the recent increase in closing costs is frightening. I recently read a blog by Northwood Mortgage, a mortgage broker about tips to save money on closing costs. First thing you should do is to analyse all the forms carefully. You should take the forms to a legal analyser to check everything thoroughly. many fees can be negotiated like the processing fees .Most of the homeowners are not aware of these administrative fees.you can also discuss your options with the seller. if they are in a hurry to close the deal and they find you the best buyer may be they will be ready to share the burden of closing costs. It is also about the time of purchase. it is wiser to close the deal towards the end of the month.
Source : http://www.northwoodmortgage.com/closing-costs/3-tips-for-saving-money-on-closing-costs-northwood-mortgage/
 
gregv said:
Buyers at 1328 Birchmount surprised by $20-30k closing costs with only a few days notice:
http://www.cbc.ca/news/canada/toronto/scarborough-condo-closing-costs-1.3486212
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Interesting scenario. I have to agree with a number of the other comments on the CBC page, in that the closing costs are actually disclosed to you as a buyer but you do have to spend some time reviewing the documents. The one variable not broken out in the article is the development fee. Not sure what the anticipated versus actual figure turned out to be. Nonetheless, still an unfortunate situation.
 
So these people are marginal buyers and didn't read disclosure docs and signed for properties several times their annual income. On top of that, you have a scummy developer who probably wants to keep their deposits and remarket the unit at higher prices. What a mess. And people say this market is stable.
 
kEiThZ said:
So these people are marginal buyers and didn't read disclosure docs and signed for properties several times their annual income. On top of that, you have a scummy developer who probably wants to keep their deposits and remarket the unit at higher prices. What a mess. And people say this market is stable.
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There is no way to know the exact $ value of the closing costs when you buy. It is almost always a surprise (even with caps). I've been through this rodeo many times and it's one of the reasons why I have sworn off buying brand new.
 
TheKingEast said:
Even 10 years later I never imagined it would be this bad.
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Ehhh. Only time this happens is when buyers rush into deals that they do not fully understand. Any lawyer/agent in the new home space would instantly see red flags. It'll damage a developer's reputation, but if its going to backstop a few million in losses, it's tempting.
 
evanbrooks0 said:
Ehhh. Only time this happens is when buyers rush into deals that they do not fully understand. Any lawyer/agent in the new home space would instantly see red flags. It'll damage a developer's reputation, but if its going to backstop a few million in losses, it's tempting.
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when you have a housing “crisis” people are forced into bad situations.

When choice is illuminated, you are left picking poor choices. I stopped buying new in Toronto because of this.
 
TheKingEast said:
when you have a housing “crisis” people are forced into bad situations.

When choice is illuminated, you are left picking poor choices. I stopped buying new in Toronto because of this.
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You're never forced into buying anything - regardless of the market you should be analyzing the potential for loss.
 
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