In my two decades working across Ontario’s construction and development landscape, I’ve seen the complexities behind condo purchases firsthand. Right now, some buyers are discovering that their pre-construction condo closing costs can exceed the current market value of their units by as much as 30%. This happens when a condo’s value drops below the price agreed upon during pre-sale, leaving purchasers with a significant funding gap. Since lenders base mortgages on present appraised values, buyers often find themselves short when it’s time to close—especially on deals signed years earlier. Extended timelines caused by pre-sales, permitting, contractor negotiations, and labor shortages can leave plenty of room for the market to shift, sometimes catching even seasoned buyers off guard. Notably, during Ontario’s previous seller’s market, developers occasionally canceled contracts as costs soared, sparking provincial intervention and calls for more accountability. The contracts themselves don’t offer much flexibility for buyers, with only a brief 10-day cooling-off period or the option to exit if the occupancy deadline isn’t met. Drawing on my experience guiding families and investors through each stage of the property journey, I know how critical it is to understand these risks before making a commitment in today’s evolving condo market.
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