Occupancy Costs vs. Closing Costs: Understanding Financial Commitments in Pre-Construction Properties

Investing in pre-construction condos in Ontario involves understanding occupancy and closing costs. The interim occupancy period allows buyers to occupy their unit before the title transfer, requiring payment of occupancy fees, which include interest on the unpaid balance, estimated maintenance fees, and property taxes. These fees do not build equity. Closing costs arise once the building is registered, including land transfer taxes, development levies, and legal fees. Rising interest rates can increase financial burdens, making proper financial planning crucial for investors.