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Old 2014-04-28, 11:51 PM
Regular User
Join Date: Sep 2007
Location: On/Kanata/Fairwinds
Posts: 81
Default How do design bonuses work?

Hi all,

Maybe it's because I've got a new baby and I'm sleep deprived but I'm confusing myself with the design centre bonus dollars.

Purchase price: $450
Structural upgrades: $25
Design centre upgrades: $30
Design centre bonus dollars: ($25)
Total: $480

Basically, they give us $25 worth of free upgrades and it's not added to the purchase price - correct? Our mortgageable total would be $480 (minus a down payment of course)?
Parkside Elevation C
Fairwinds West
Closing November 24, 2015
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Old 2014-04-29, 01:05 AM
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Picky Picky is offline
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Location: Brampton
Posts: 746

Yes, unless you want to pay the upgrade balance of $30k upfront without adding that to your purchase price
Marigold A
Great Gulf Mount Pleasant

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Old 2014-04-29, 10:13 AM
WellThatsLovely WellThatsLovely is offline
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Join Date: Jan 2014
Location: Oakville
Posts: 770

Originally Posted by Picky View Post
Yes, unless you want to pay the upgrade balance of $30k upfront without adding that to your purchase price
In theory, that's correct, but sales staff from one site to another can't seem to come to a consensus on that one.

There also appears to be a distinction between "design upgrades" and "structural upgrades". Our "structural upgrades" were forced into the purchase price of our new build while the "design upgrades" can be paid for in cash or partially paid if we provide proof that a bank would cover the total amount of the house purchase (purchase price + upgrades - deposits = mortgage amount).

I wanted to pay them in cash so we wouldn't have to pay an extra $2,000 land transfer tax on our upgrades but they wouldn't let us... I have a colleague who was forced to pay the upgrades in cash in addition to the deposits so it wasn't added to his purchase price.

If you have the choice and can manage financially, it's best to pay as many items as you can separately so that it isn't added to the "purchase price" which is the amount you pay Land Transfer Tax and CMHC on if you're getting that. (Although the difference in CMHC is negligible, it's still nice to spend that $500 on your new baby instead of lining the pockets of some bank manager ).
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Old 2014-04-29, 10:54 AM
Almost_Home Almost_Home is offline
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Join Date: Oct 2010
Location: Ontario
Posts: 502

As others have said - the upgrades are added into the purchase price and then when you put a down payment or payment for upgrades down the total amount is reduced.

Your land transfer tax and all calculations relating to the total cost of your home include ALL upgrades.


House - $400K
Upgrades - $50K
Down payment - $-25K
Upgrades Deposit - $-5K
House Mortgage Total = $420,000

Your LTT will be calculated on the $400+50K = $450 not $420
Patiently Awaiting Our Next Adventure

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Old 2014-04-29, 11:06 AM
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Selvi Selvi is offline
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$480 for a house is cheap, that costs less than my TV
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Old 2014-04-29, 12:02 PM
Olivetti Spaghetti Olivetti Spaghetti is offline
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Join Date: Jan 2014
Location: Kanata
Posts: 44

I think it may depend who you talk to when signing your purchase agreement. We were also told that structural upgrades had to be paid for separately, and that we could not use our design centre credit towards it, but we told them that we were not willing to go over on the purchase price on the home. so we were able to add the basement bathroom rough in & change our elevation (both structural) using our design centre credit.
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Old 2014-04-29, 01:56 PM
Yoda Yoda is offline
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Join Date: Jan 2013
Location: Ottawa
Posts: 167

When we bought last year Mattamy was very flexible with the design centre credit. They told us we could use it all to reduce the purchase and sturctural upgrades price before the design centre upgrades or we could save it for the design centre or we could use half on price and half at design centre. We just used the whole amount on the purchase price and structural upgrades as we didn't think we would use that much at the design centre (lol-I know, we were naive).
Monarch Stonebridge
National end-unit 2007

Mattamy HMB Phase 2
Willowbrook elevation B
Closing date May 29, 2014
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