Lenders still cautious about micro-condos

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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. Read the full story.
  • Angela Wong-Liao - Invis on 2014-11-13 10:28:14 AM

    I am amazed that Toronto condo developers are building micro condos as Toronto is not Hong Kong or Tokyo, very limited space for large population. Frankly, when the market is hot, these micro condos can sell but when market cools down, it may be challenging to sell this type of condo units. In my opinion, I favor our traditional condo units with at least 600 sq ft and bigger

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