What is a Phantom
Mortgage?
Whenever you purchase a new condo, there is a period of time between when you take occupancy of your unit and when you take ownership of your unit. This is known as the 'interim occupancy'.
You can't own something that doesn't exist, and in real estate in Ontario, a property does not exist until it is registered.
This process takes some time in a new condo because there are often hundreds of units to register at the same time.
Once your unit is ready and liveable, you take possession of it, but not ownership. You must pay the developer for the right to live in the unit. This is known as a phantom mortgage because you are paying rent to the builder.
The occupancy period ends when the building is registered, your mortgage kicks in, and you get the deed to your property.
So should you let the phantom mortgage deter you from purchasing a new condo?
Absolutely not! But be an informed buyer!
For more information
contact us at
416-920-9931 or
mortgages@eddiemac.ca
Visit us online at www.eddiemac.ca
Your Toronto
Mortgage Broker
637 College
Street, Suite 201, Toronto ON, M6G 1B5
