Builder upgrade - Pay upfront or put it in the mortgage

lilldiscussion wrote: ↑ Hello,

What is recommoned for the builder upgrades. Do we pay it upfront to the builder or add it to the mortgage and increase the down payment.
If we pay upfront the amount will not be added to purchase price (APS will not be modified).

Let's say we have 40K in upgrades both structural and design. What makes more sense....

Option 1 : Pay upfront to the builder by CC or check. As per builder, the total purchase price(and APS ) will not be changed. One benefit I can think of this option is, I can save some money in land transfer tax.

Also, Is the property tax based on the purchase price from builder or is it based on MPAC assesment?. If it is based on the purchase price then I think paying upfront may be recommened.

Option 2: Pay 10% of upgrade now and add remaining to the mortgage and eventually include it to the down payment. Will increasing down payment have any benefit, let's say instead of 20% down if I put 24% down by included the amount for upgrades.

Not sure if adding the amount to mortgage and eventually paying as down payment will impact (negetively or positvely) on my mortgage approval.



Thanks