I read an article today on Wall Street Journal on the builders in the US are giving incentives to purchasers with lower mortgage rates. The average mortgage rate in the US is bout 7% right now, and builders provide incentives such as 3% interest rate for a period of time or the entirety of the loan term. Essentially, they are covering the differences between the bank rate and the rate they are promising. In other words, it is a cash incentive for the buyer, without lowering. the price.
That reminds me that in Toronto we have the same incentives as well. So I decided to take look at the projects that are offering such programs. They are projects that are well under construction, or already completed.
VERGE CONDOS
It's located in Etobicoke, on the Queensway, developed by RioCan. They are offering 5% deposit only, with 0.99% mortgage rate for a year for 2 bedroom or larger, and 1.99% mortgage rate for the smaller units.
1 Bedroom starts at $649,900, 2 bedroom starts at $919,900.
While rate will continue to come down, I think it's a great opportunity to seize the rate for 1 year and secure regular financing with the bank in a year's time.
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