The Modern on Richmond: 5% Deposit Now Available
Last Updated on
If you are looking for a condo on the east side of downtown, The Modern on Richmond is offering a great promotion right now – 5% deposit & $10,000 price discount. Before I provide the details, please read this caveat on 5% deposit programs and contact me if you would like more information.
Beware of 5% deposit programs at new developments. Usually they are so full of stipulations and conditions that they are not worthwhile for most buyers. If you do see a project that you are interested in buying into offering a 5% deposit program, always ask yourself this question:
If every other builder in town is requiring 15-20% deposit, how can this one be asking for only 5%?
There is usually a ‘catch’. Most of them are not really 5% deposits. They often fall under these two scenarios:
- Put 5% down up front, then get a line of credit (must qualify for it) through the developer’s lender of choice for the additional 10%. Then you pay interest only on the 10% from now until final closing (2-4 years later). You have to then determine who is going to pay off the line of credit and when? Sometimes the developer will pay it off at final closing, sometimes not. It gets complicated. Make sure you understand all the terms before entering into this type of scenario.
- Put 5% down up front, then pay out the remaining 5-10% slowly over time in increments or you must pay an additional 5-10% at occupancy.Ãƒâ€šÃ‚Â
In either case, it’s not really a 5% deposit, but these are options that sometimes work for some buyers.Ãƒâ€šÃ‚Â
Refreshingly, the promotion that the Modern is currently running from now until the end of this month is not one of these 5% programs with conditions attached. As far as I can tell, this is a TRUE 5% deposit program. The program is being offered on all suites, and you do not have to be a first time buyer to qualify. $2000 is due at the time of signing, the balance of 2.5% is due in 30 days, and an additional 2.5% is due in 60 days. No additional deposit is required at occupancy. The only ‘condition’ is that the buyer has to qualify for standard CMHC insurance (which is required on the purchase of any real estate with less than 20% down).
Prices at The Modern in the low to mid $400s per square foot. See the price sheet below for details and for floor plans visit the developer’s site.
If you are interested in purchasing a unit at The Modern, or if you would like more information, please contact me.