Condo buyers who can no longer afford the mortgages for pre-construction condo deals are contacting brokers to try to get out of these purchase agreements with developers.
These buyers are telling agents they are increasingly concerned that they'll be unable to close their purchase agreements because of higher interest rates, according to a report in the Toronto Star. Many of them jumped into variable-rate mortgages that they can no longer afford,
Realtors in the Greater Toronto Area (GTA) are noticing a rise in inquiries for assignment sales, a legal transaction in which the original pre-construction condo buyer transfers the rights and obligations of the purchase agreement to another buyer.
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