Condo financing
“Financing” condition and “Property Inspection” condition tend to be the 2 most common conditions on purchase contracts in Alberta. You can do a lot to help your lending potential (increase income, decrease expenses) but ultimately the lender has the final say on what you can or can not be approved before.
I bring this up, because sometimes there are other circumstances that may affect lending ability specifically when purchasing a condo.
Size of the unit is often a concern. In fact, if the unit is under 500 sq ft, certain lenders may not approve the lending and thus result in the termination of the purchase. It is important to clarify this with your lender before putting an offer in.
Condo documents can also play a role in approval. Buildings that have been subject to special assessments, or could be subject to one in the future, may be disapproved by the lender. It is always a good idea to go through the condo documents with extra scrutiny just for your own purposes as well to avoid unexpected costs in the future.
Another thing they may look at is percentage of owners residing in property vs. renters. If there is a disproportionate number the lender may see this as a negative.
The unfortunate thing when purchasing a condo is that often these things can be out of your control, so it is up to the lender to decide whether or not they approve of your purchase. The best thing to do is to give them as much information as possible and the necessary time to examine everything sufficiently.
