Ontario Condo Closings Face Value Gap

Current Ontario condo closings left some purchasers owing up to 30% above a unit’s market value, as proposed units had fallen below their contract prices.
Many purchases could not close because banks based mortgage advances on current unit value, leaving insufficient closing funds when contract prices exceeded appraisal.
Long gaps between signing and closing came from pre-sales, approvals, permits, contractor agreements, and labor shortages, giving falling markets time to upend buyer plans.
In Ontario’s earlier seller’s market, developers sometimes canceled deals when costs surged, prompting provincial scrutiny, proposed penalties, and calls for independent reviews.
Purchasers faced complex contracts with limited escape routes: usually only a 10-day cooling-off period, or termination if occupancy missed the outside occupancy date.