Buying a Pre-Sale Home 101
Feb 05th, 2020
There are lots of options out there when it comes to buying a home. And lots of decisions to make. Where’s your ideal neighbourhood? What kind of home do you want? When would you like to move? And a dozen more…
We’re here to talk about the merits of buying a pre-sale home – a home that has yet to be built, sold directly by the developer.
BRAND NEW HOME
When you buy a pre-sale home, you’ll be the first to live there. Brand new kitchen, bathroom, everything. And because you’re buying a home before it’s built, you have the possibility to personalize your space – sometimes that means a selection of colour palettes, upgrades, or other design options.
DEDICATED SALES TEAM
Often working directly with the developer, the sales team will know everything there is to know about your potential home. They’re there to guide you through the buying process and answer any questions you may have – from product details to developer expertise to terminology.
PEACE OF MIND
By law, all pre-sale homes include 2-5-10 New Home Warranty, which includes 2 years on labour and materials, 5 years on the building envelope, including water penetration, and 10 years on structure.
When buying a pre-sale home under $750,000, you may be exempt from paying Property Transfer Tax. You may find further savings in developer promotions – be sure to register for projects so you’re the first to know.
When your move-in date is a year or more away, you have time to contribute more money to your down payment – that’s on top of the deposit you paid at purchase. This could reduce your mortgage insurance premiums and lower your monthly payments. Pre-sale homes also have a rescission period of seven days, which means you have a week to think over your decision before you legally commit.