I’ve been seeing a lot of Ontario condo purchasers facing a tough surprise at closing: their units are appraising up to 30% below the contract price they originally agreed to. That gap means many are suddenly short on closing funds, since lenders base their mortgage advances on today’s appraised value, not the price you signed for years ago.
A lot of these problems trace back to those long waits between pre-sale and completion—delays caused by permits, approvals, construction contracts, and even labour shortages. All that time gives the market plenty of room to shift, and unfortunately, not always in a buyer’s favour. In the previous red-hot market, we saw developers sometimes cancel deals when their own costs shot up, which led to government scrutiny and calls for tighter oversight.
The contracts themselves can be complicated, with very few ways out: usually just a 10-day cooling-off period, or the rare case where a project misses its final occupancy date. As a mortgage agent who’s spent decades behind the scenes as an underwriter, I know how overwhelming these situations can feel. My focus is always on helping clients navigate these challenges, especially when you feel boxed in by a contract or caught off guard by financing shortfalls. Honest advice and a smart strategy can make a real difference when the numbers—and the fine print—don’t seem to add up.
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