Quote:
Originally Posted by tony-soprano
The bank will only approve the mortgage on the assessed value, which is 300k less than the amount on the contract. So the buyer will need to pay that difference upfront to the developer and rest can go on mortgage or he can walk away and give up his deposit.
Odds are he planned to reassign that contract to someone else. In Vancouver theirs a lot of non-resident buyers that solely buy to flip the contract for a profit, but for them it’s 30% down.
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And if you can sell/flip before it closes, it's zero percent down. But if you want to play that game, you have to accept the risk, which is that the market might go the other way and leave you holding the bag with a loss.