We're seeing a tough situation for many Ontario condo buyers right now: recent closings have left some purchasers facing up to a 30% gap between what they agreed to pay and their unit’s current market value. Because banks base mortgage approvals on the appraised value at closing—not the contract price—this gap can mean buyers suddenly don’t have enough funds to complete their purchase. Much of this comes from the long stretch between pre-construction sales and final closing: by the time permits, approvals, and construction delays (including labour shortages) play out, the market can shift dramatically. In busier seller’s markets, developers would sometimes cancel deals due to rising costs, which led to more government oversight and calls for independent reviews. For buyers, the contracts are complex and options to walk away are limited—usually just a 10-day cooling-off period or an out if the builder misses the final occupancy date.
Having invested, managed, and taught real estate across Ontario for decades, I know how important it is to understand these risks before signing. Careful contract review and planning are key, especially for anyone considering pre-construction investments. If you’re weighing your options, my experience across single family, multi-family, and investment properties can help you spot pitfalls—and opportunities—so you can move forward with confidence.
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