Just because 1 lender declines a condo unit it does not mean it is a bad investment
My lovely first time buyers were working with their bank and got pre-approved….because their parents told them that is who they should work with. FYI, a long time ago brokers were only for people who did not qualify at the bank & depending on your age you still might wrongly think this.
Well, they found a great condo in Toronto and their realtor got it for them for an awesome price. And then their mortgage request got declined….. so their realtor sent them to us.
We found out that some lenders and default insurers do not like this particular building. So while the client is awesome, there are details about the building and how the condo board is running it that they do not like. But….we work with 57 different lenders…. so we found them someone who DOES like the building and we were able to get the client approved at a great rate for the condo that they fell in love with!
In general, when you are buying a condo there are things that you need to be aware of:
Not all lenders or all insurers like all condo buildings
Some condo buildings are red flagged by every lender and can only get a private mortgage until the issues are corrected
You are not just buying a unit, you are also buying into part of the condominium corporation (and it’s management, good or bad)
Issues with the building that do not affect your unit can still affect your mortgage options if they impact the buildings financials
Different lenders have different minimum square footage or other preferences when it comes to condos
High condo fees can be a red-flag but are not always
This is why when you are buying a condo it is really important that you are open to working with more than one lender as they all have different policies and guidelines when it comes to condo units.
If you or someone you know has questions about buying a condo we would be happy to help!