CO-OP are located in great locations, vastly cheaper than strata properties, with lower maintenance and taxes and significantly larger square footage. Usually no Property Purchase tax paid.
Cons of Co-op
Mortgage Lenders are limited and will require a 35% down payment (HSBC, Prospero, Canadian Western Bank) it is best to consult a mortgage broker to package you application correctly for best results, and expect to pay ½-2% above posted rates. Generally it is safe to say: no children, limited (board approval) for pets, and no washer/dryers en suite (shared laundry), and no rentals, limited parking is available and participation required!!
The majority of co-ops are walk-ups (no elevator), and are of a wood frame construction. They will usually have no balconies. Should the co-op you choose to have a balcony, elevator, and view, these will be at the upper end of the scale.
Registered or Non-Registered Co-op
Registered means the title is registered with the province. Banks like these type of co-op buildings. Property Purchase tax will be paid.
Non-Registered: no Property Purchase tax, however, title must be shown from inception (not a big issue).
If you are looking for a mortgage on a Co-op please feel free to give us a call.
Toll free 1-877-744-3436