Great News For Ontario Developers – Condominium Deposit Interest And Other Changes

The week is ending on an extremely positive note for the Ontario home building industry, which in the long-run, will benefit all home buyers. Three very positive things have or are expected to occur over the next few days:

Condominium Deposit Interest

It is anticipated that the government will shortly be enacting a regulation which leaves the previous interest rate of BOC rate minus 2% in effect when calculating interest on deposits payable on interim closing. The full BOC policy rate (0.25% below the BOC rate) without reduction of 2%, would apply only to deposits which are being returned by builders because of cancellation of the purchase agreement by either the vendor or the purchaser as a result of the outside occupancy date not having been met. This will save projects launched after January 1, 2023, significant costs, which in turn will benefit consumers. If all goes well, watch out for an announcement from BILD and OHBA.