How to Buy
Buying a Home at Kensington – What you need to know
When buying a home at Kensington, two pieces of government issued ID are required along with a cheque for the initial deposit of $2,500. Below are additional requirements for owing at Kensington:
- The purchaser must read, review, and /or complete the following documents:
- The purchaser will need to provide a cheque for $2,500 made out to “McLeod Law in Trust”. The $2500 will form part of 5% deposit that is required for purchasing your new home at Kensington. Homes with a purchase price above $500,000 require a 10% deposit – further details below.
- At the end of 10-days, and/or all conditions have been removed from the Purchase Agreement, the balance of the 5% deposit is due. The amount due is 5% of the Purchase price minus the $2500 previously provided. Funds will need to be provided by way of certified cheque or bank draft and made out to “McLeod Law in Trust” with reference to the development and suite you have purchased i.e. – Kensington Suite #201.There will be a 10-day rescission period commencing from when the Purchase Agreement is written. If the purchaser exercises this option to rescind during the 10-day period, we will return the $2,500 and there will be no further obligations.
- Within 15 days of completing the mortgage and bond applications the purchaser will receive confirmation from TD Canada Trust and Blanket Home Warranty (The Bond) regarding a commitment for mortgage financing and deposit bond. If you are not eligible for a mortgage or bond, we will require an additional deposit equivalent to 15% of the purchase price (additional 10% deposit for homes over $500,000). Otherwise, no further cash deposits are required until closing. See bond FAQ’s below.
- As soon as we hit our presales target, construction gets underway and we will be sending progress reports.
- In the unlikely event that we do not hit our pre-sales target by June 30, 2016 all contracts will be cancelled and all purchasers will have their deposits returned. UPDATE – pre-sale targets have been met! Construction started November 24th, 2014
- As we approach completion of construction, you will be contacted by Bucci staff to arrange:
- Pre-possession deficiency walkthrough
- Possession walkthrough and home orientation
- Move-in and elevator bookings
Frequently Asked Questions
- What is the Deposit or Down-payment at Kensington?
5% cash deposit for homes under $500,000 or 10% cash deposit for homes priced above $500,000. The total deposit or down-payment required on the Purchase Agreement is 20% with the difference being made up by way of a Bond.
- What are Bonds?
Bonds are provided to our purchasers by Blanket Home Warranty and an excellent alternative to the large cash deposits normally required in new home construction. Bonds are a guarantee by Blanket Home Warranty, to the Developer, that the deposit will be paid in the event that a purchaser defaults on the contract of purchase and sale.
- What does the Bond cost?
There is no cost to the Purchaser.
- Are Bonds mandatory?
No, but the alternative is a 20% cash deposit rather than a more favorable blend of 5% cash and 15% Bond guarantee.
- Who else used Bonds for deposits?
Bonds have become increasingly popular over the last few years as it enables purchasers to purchase with 5% deposit while the home is under construction. Purchasers can get into the market earlier which also allows them more time to save for their new home.
- Is a commitment letter from TD Canada Trust mandatory?
- Why is a commitment letter from TD Canada Trust mandatory?
TD is offering an excellent package by holding today’s interest rates until occupancy. This gives you the security of knowing the maximum your mortgage payments will be and that the home you have chosen fits within your budget.
- Can I use my own mortgage broker?
Unfortunately, we insist that you submit an application with TD as we are comfortable with their underwriting criteria. While you are not obligated to take TD’s mortgage at Closing, we require a copy of TD’s approval as part of our financial requirement.
- What happens if the project doesn’t begin?
We don’t want your deposit tied up for years. If the project doesn’t start construction by June 30, 2018, all contracts are void and the deposits returned. Please see contract for details.
- What happens at Closing?
You will need to repay the Bond in cash or you may be able to use mortgage proceeds to cover the Bond amount. Your mortgage approval will determine the level of financing you are able to receive.