There’s a tough situation unfolding in Ontario’s condo market right now. Some buyers are finding that, as their units reach closing, the appraised values have dropped well below what they agreed to pay—sometimes by as much as 30%. This means banks are only willing to lend based on today’s lower values, leaving buyers short on the funds needed to close.
Much of this comes down to the long period between signing and closing—a window often stretched by pre-sales, construction approvals, and ongoing labor shortages. This delay has given the changing market time to shift, leaving buyers in a difficult spot. In the earlier seller’s market, developers responded to rising costs by occasionally canceling deals, which caught the attention of the province and led to calls for tighter rules and independent oversight.
Condo contracts tend to be complex, too, offering few ways out for purchasers beyond a 10-day cooling-off period or when occupancy dates aren’t met. As someone who’s guided many clients through buying in Eastern Ontario, I know how important it is to stay informed and prepared for these kinds of challenges. My honest advice: always go into these agreements with your eyes wide open, and don’t hesitate to ask questions if something doesn’t feel clear.
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