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Toronto Micro Condos - Get the Scoop on Financing Before You Buy

Thinking of buying an Affordable Condo in Toronto?   You might come across the new niche market of Micro Condos - suites under the 500 square foot range.   

Due to their lower, more affordable price range, they seem to be a big hit with real estate investors, however, there seems to be some apprehension with Banks in offering financing for this newer market segment.

The micro condo, also known as a Studio condo, offer a good starting point for first time buyers and investors looking to buy in Toronto on a limited budget.   But consider checking with your bank regarding financing of these suites.   TD bank currently has a minimum square footage requirement, however they also review applications on a case by case basis.

Scotiabank currently won't financing suites under 600 sqft.  But check with your local branch.

Banks are currently taking the position that the micro condos are somehow at a higher risk, however, don't be surprised if policies change in the near future as more buyers and investors are looking at the positive sides of these smaller units.

In a recent Toronto Star article one quote was interesting:

Micro Condo Rental Rate Sample (Toronto 2014) 

Urbanation:  Studied Entertainment District rental condo rates in the first nine months of the year (2014).  It found under 500 square foot condos were going for $3.34 per square foot, compared to $2.80 per square foot for those over 600 square feet.

As Builders start to design the smaller units more efficiently, we may see a growing trend toward Micro Condos.   Lets hope the banks catch up and provide more trouble free pre-approvals for mortgages.

 If you are looking to job into the Toronto Real Estate Condo Market and wish to stay under the $350,000 price range, give us a call for our Top 5 Micro Condominium Projects for 2015.

 Sutton Group Condo Department 416-896-3333

 

Sutton Group Real Estate Toronto

www.SearchTorontoHomes.com

Contact us at :  sutton@realtor.com

 

Links to condo maintenance fee averages:

http://www.suttonrealty.com/Toronto_Condos_-_New_Developments/page_2629404.html

 

 

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