When deciding to purchase a condo, one of the first decisions you will be faced with is whether to go with a pre-construction condo or a more conventional resale condo. While the cosmetic appeal of buying a new condo unit may seem enticing, there are many aspects to consider before diving into the purchase.
One of the main differences when purchasing a pre-construction condo, opposed to a resale condo, is the way it is financed. On a resale condo, you can put down as little as 5% towards the purchase price. On a pre-construction condo, however, you are often required to have at least a 20% down payment. That amount may seem high but the full payment is broken up into smaller installments, made in what is usually referred to as the deposit structure.