News from Canada's Mortgage Experts
Category: Buying a Home
Occupancy date and closing date – what new condo buyers need to know?
Monday, Aug. 9, 2010
Posted by: Roula Vagopoulos
Many clients purchasing condos get confused when trying to differentiate between their occupancy date and registration date...knowing that they are not the same thing and that one will have an impact on the timing of your mortgage, and ultimately your mortgage interest rate, is important.
Occupancy Date:
The purchaser is allowed to move into or occupy the property
The purchaser is paying occupancy fees to the builder (i.e., rent) which are outlined in the Agreement of Purchase and Sale
You are NOT paying a mortgage at this point
Closing/Registration Date:
This occurs upon registration of the building
You, the purchaser, legally owns the property and has possession of the property i.e., your condo
Your mortgage term begins, you start making mortgage payments and paying down your mortgage quickly
Watch this week’s video blog to learn the difference between the two terms and the different payments and fees each may entail for the purchaser and how it affects the mortgage attached to your condo.
