Homebuyers buy into developer buy-down program

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With a new incentive model proving lucrative for one Canadian developer, are we bound to see more rate buy-downs from development companies?

“We are very happy with today’s dramatic sales result,” Brian Regehr, President of WestStone Properties, the developer of the 35-storey Evolve condo tower said in an official release. “This is the culmination of two years’ work, which began with architecturally market-matching the floor plans with the intended buyer groups, creating an international marketing program and bringing together their skilled team of professionals that catered to every customer’s need.”

300 homes were sold within an hour-and-a-half window on the first day of sales, with over 2,000 people attending the launch with the hopes of scooping up one of the units on offer.

WestStone Group -- in partnership with Platinum Project Marketing -- held a special promotion for the first 200 buyers of its Evolve development in Surrey, B.C., offering certain condos for as little as $365 for the first year through its $1 per day mortgage buy-down. The offer was open to all qualifying mortgage holders, regardless of which lender their mortgage is with.

The cost was covered by the developer, meaning broker compensation was not affected.

“These kinds of promotions have to be open to everyone or they just don’t work; we make no bones about which lenders clients go to,” Vince Taylor, partner with Platinum Project Marketing told MortgageBrokerNews.ca in late March. “Every client is free to use whoever they want.”

The promotion was available for every unit, with a tiered cost structure that offered certain units for $1-$12 per day, depending on the unit size.
Units start at $93,900, and range in size from 316 to 1,294 square feet.

  • Broker on 2015-04-21 11:08:57 AM

    All this does is reduce the lending value of the property, forcing people to come up with bigger down payments.

  • John W on 2015-04-21 12:29:56 PM

    The cost would be added into the price of the unit so just another marketing gimmick.

  • John JS on 2015-04-21 12:47:43 PM

    Laughable matter and I don`t believe there is much truth in this headline. "Dramatic sales results" is fake disclosure, and so are real estate values in general, stocks/corporate earnings, money are fake and and it seems Canadian economy is fake too. The truth of the matter is that these billboards work on psyche and will break you, crumble you down to molecular level and one will collapse under the weight of misleading information against despite his better judgement. And the wheel keeps on turning until . . . . . . . .

  • MB on 2015-04-21 1:44:13 PM

    Fancy package offering a reduction in price only to surprise buyers at closing.

  • Rebecca Awram on 2015-04-21 7:18:00 PM

    The developer clearly has no understanding of how builder incentives are handled by the lender and insurer. Or, he does, and knows that it will only be treated as a price reduction at completion. Either way, the consumer misled and misinformed.

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