Lenders still cautious about micro-condos
Size isn’t everything but when it comes to condos it could be the difference between getting a mortgage and not. With space and budgets being tight micro-condos are gaining popularity, especially in Toronto, but lenders are not so keen. Condo researchers Urbanation say that around 5 per cent of the new condo supply in Toronto’s core is less than 500 square feet; by the end of next year it will be 11 per cent. However lenders are cautious about the trend and many, including B lenders, have policies of not issuing mortgages for a property of less than 500 or 600 square feet. Some do though and RBC has granted loans on 301 square foot homes. Inevitably as the market grows lenders will become more interested; with more than 3000 micro-condos expected in Toronto by the end of next year they may be hard to ignore.