10/14/2026
Ontario Condo Closings Face Value Gap
In Ontario, we're seeing a significant challenge for condo buyers: some are finding themselves responsible for up to 30% more than the actual market value of their units at closing. This gap has emerged because many pre-construction units have dropped in value since buyers first signed their contracts. When it comes time to close, banks base their mortgage approvals on today's appraised values—not the original contract price—leaving some purchasers short on funds to complete their purchase. The long wait between signing and closing, often due to pre-sale processes, permit delays, and labor shortages, has only added to the uncertainty, allowing market shifts to catch buyers off guard. In the past, when costs unexpectedly surged, developers sometimes canceled deals altogether, which drew attention from the province and led to discussions about new penalties and independent reviews. For most buyers, contracts come with very limited exits: typically just a 10-day cooling-off period or withdrawal if occupancy is delayed beyond a set date. As Meadowvale Village listing specialists with over 21 years of experience navigating changing markets, we understand how important it is to be prepared for every scenario in the condo market.
