Real Estate

how is mortgage policy on condo unit less than 500 sq ft now?

  • Last Updated:
  • May 11th, 2017 1:04 am
[OP]
Sr. Member
Dec 24, 2007
732 posts
63 upvotes
GTA

how is mortgage policy on condo unit less than 500 sq ft now?

I was told a year ago by my agent that banks reluctant to insure condo unit less than 500 sq ft. How is the situation now?
10 replies
Deal Addict
Mar 14, 2006
1332 posts
717 upvotes
Toronto
I believe that is still correct. One will need special handling to get this mortgage. I didn't even know about this rule until my agent mentioned to me last week.
[OP]
Sr. Member
Dec 24, 2007
732 posts
63 upvotes
GTA
Is the special handling just some extra charges? like 1.5%?
Deal Fanatic
User avatar
Feb 2, 2014
8329 posts
2333 upvotes
Toronto
Smiley22 wrote: I believe that is still correct. One will need special handling to get this mortgage. I didn't even know about this rule until my agent mentioned to me last week.
There are a few lenders that don't have a square footage requirement.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
Sr. Member
Dec 24, 2007
732 posts
63 upvotes
GTA
CdnRealEstateGuy wrote: There are a few lenders that don't have a square footage requirement.
Big 5 or B lenders? will they charge extra?
Deal Fanatic
User avatar
Feb 2, 2014
8329 posts
2333 upvotes
Toronto
pandorazw wrote: Big 5 or B lenders? will they charge extra?
Neither Big 5 or B lenders. There are many A lenders that are not B lenders, nor the Big 5.

No extra charge.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Jan 26, 2016
1639 posts
1468 upvotes
Toronto, ON
Aren't these condos very difficult to sell? Recent years I have seen 1+1 or 2 beds a bit appreciate more than 1 bed, and bachelor seems to be far worse than all.
[OP]
Sr. Member
Dec 24, 2007
732 posts
63 upvotes
GTA
WinterSleep wrote: Aren't these condos very difficult to sell? Recent years I have seen 1+1 or 2 beds a bit appreciate more than 1 bed, and bachelor seems to be far worse than all.
It's a matter of personal choice and not the topic of this thread.
Penalty Box
Dec 27, 2013
8003 posts
3986 upvotes
Toronto
most big 5 will do it if it's in Toronto.
Deal Addict
User avatar
Dec 13, 2016
3575 posts
3059 upvotes
How are smaller condo's difficult to sell? I think the exact opposite is true. Just look at Malibu condos on Fleet street. So-so location, yet studios are selling at 1000k per square foot. Bigger condos are selling for 800-900 per square foot.

For quick buck always go for the studio. Low condo fees, easy to rent to plenty of single guys in Toronto and easy flip.
Deal Addict
Jan 26, 2016
1639 posts
1468 upvotes
Toronto, ON
BiegeToyota wrote: How are smaller condo's difficult to sell? I think the exact opposite is true. Just look at Malibu condos on Fleet street. So-so location, yet studios are selling at 1000k per square foot. Bigger condos are selling for 800-900 per square foot.

For quick buck always go for the studio. Low condo fees, easy to rent to plenty of single guys in Toronto and easy flip.
For one thing, the only people who would find it useful to buy/rent would be single people. So that right there limits your pool of buyers. Any single person is probably looking to find someone, so why would someone buy it to live there, since buying is a long term endeavor and being single is not? Most people find someone and want to move in together. Unless they choose to be single for longer, but that's a smaller percentage.

But at least a 1 bed would allow you to expand to couples, which is a larger pool. I suppose a couple could live in a bachelor, but it would be very tight...

Top