(1)How to get a Mortgage for a New Build Condo Assignment? (2) An assignment is a REAL ESTATE sales transaction where the original buyer of a property (the “assignor”) allows another buyer (the “assignee”) to take over the rights and obligations of the Agreement of Purchase and Sale by THE ORIGINAL BUYER (THE ASSIGNOR), before THE CLOSING on the property. The assignee is the one who ultimately CLOSES the deal with the BUILDER. ASSIGNMENT IS LIKE SELLING THE CONTRACT TO ANOTHER BUYER. THIS IS COMMON TO PREBUILT CONDOS AND HOMES. THE ASSIGNOR AND THE ASSIGNEE negotiate the terms of the Assignment Sale, such as the Assignment Purchase Price, Real Estate Deposit/s, and other costs. It is important to note that the Builder will need to signoff on this Assignment Sale. (3) DOCUMENTS NEEDED: Original Builder Purchase Agreement Floor Plan Copy of Builder Deposits Interim Statement of Adjustments Signed Purchase and Sale Agreement (Assignment Agreement) Copy of Real Estate Deposit Income Confirmation Proof of Down Payment IDs Mortgage Application and Privacy Agreement Signed Builder Acknowledgement of the Assignment (4) VALUE USED… TO the BUYER(Assignee): Assignment Purchase Price: Real Estate Deposit: Mortgage Approved/Required: Owed to the Builder Owed to the Assignor Other Costs TO the Original Buyer (Assignor): Original Purchase Price (with Builder) Assignment Sale Price (with Assignee) Profit as Capital Gains or INCOME Anticipated Cash on Hand after Sale… Dont forget that the Builder Deposits given by the Assignor/Original Buyer is signed over to the Assignee… Real Estate Deposit given by the Assignee goes to the Assignor/Original Buyer… VALUE USED… by the Lender…there are lenders will only use the lower of Original Purchase Price and Market Value… There are Lenders that use the lower of Assignment Purchase Price and Market Value… It is so important to distinguish because what value we use affects how much we can borrow… The LENDER WILL QUALIFY THE ASSIGNEE’S ABILITY TO AFFORD THE MORTGAGE, HIS OR HER CREDIT HISTORY AND AS MENTIONED BEFORE THE VALUE OF THE NEW BUILD CONDO. Dealing with a Mortgage Agent that can explain and advise you on the financial components of an Assignment Sale helps minimize your financial stress. An experienced Mortgage Agent can help you get that mortgage that funds the deal. #emamortgageteam #mortgagealliance #mississaugarealestate #oakville #oakvillerealestate #miltonontario #miltonrealestate #haltonhills #ancasterontario #ancasterrealestate #torontorealestate #georgetownontario #mortgagerates #mortgagebroker #mortgageagent #interestrates #mortgage #fthb #bramptonrealestate #hamiltonrealestate #ancastermortgage #ancastermortgageagent

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