Financing a Metrotown Condo

Key takeaways

• A pre-approval is not final approval for a specific property.
• Lenders and insurers may review the building as well as the borrower.
• Strata fees and taxes affect affordability.
• Presale financing must survive the time to completion.

Separate borrower and property approval

Income, credit, debt and down payment are only one side of the decision. A lender may also consider appraisal, property type, insurance, strata condition and marketability.

Keep financial information current and avoid major credit or employment changes before completion without discussing them with your adviser.

Budget the monthly total

Include mortgage payment, strata fees, property tax, insurance, utilities and a reserve for repairs or levies. Confirm how a lender treats strata fees in qualification.

Keep cash for closing adjustments and post-completion needs rather than using every available dollar for the down payment. Obtain current estimates for legal costs, tax and insurance from qualified providers.

Prepare for building questions

Unresolved insurance, litigation, major defects, unusual title or very small units can affect lender appetite. Submit property documents early when a concern is known.

A financing condition should allow enough time for lender and insurer review where appropriate. A general pre-approval cannot identify every property-specific issue before an address and documents are available.