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  #1  
Old 2012-08-21, 09:32 AM
Katharina Katharina is offline
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Default Downpayment/deposit question

we are considering buying a Mattamy home in HalfMoonBay South. We are concerned about the downpayment and the amount of time between the downpayment and the actual home acqusition. What would happen to our
35K if Mattamy were to go bankrupt (though unlikely, we would like some reassurance)?

Thank you.
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Old 2012-08-21, 10:17 AM
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gerapau gerapau is offline
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Deposits up to $40k made to your builder are protected by Tarion.
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Old 2012-08-21, 10:41 AM
gladiator1942 gladiator1942 is offline
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mattamy is a decent home builder and been around for a while. they have some pretty large developments in the GTA. i'd doubt they'll go under. i wouldn't lose any sleep over it.
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Old 2012-08-21, 12:57 PM
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Dennis&Sarah Dennis&Sarah is offline
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Quote:
Originally Posted by Katharina View Post
we are considering buying a Mattamy home in HalfMoonBay South. We are concerned about the downpayment and the amount of time between the downpayment and the actual home acqusition. What would happen to our
35K if Mattamy were to go bankrupt (though unlikely, we would like some reassurance)?

Thank you.
With whatever builder you go with, you're going to have to put a deposit down. This is a risk that everyone takes when purchasing a new home. Sometimes the length of time between the deposit and the actual closing of the home could be longer than others (our next Mattamy home isn't going to be ready till 2014). However, there are cases (ex delays), where there is point in time where you can walk away and get your deposit back with no interest though. Either than that, you should consult your lawyer as well. But in terms of Mattamy going bankrupt, very unlikely.
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Old 2012-08-21, 01:18 PM
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LeoMessi LeoMessi is offline
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I understand your concern, but there are deposits associated with all builders!
Tarion protects you up to $40K (http://www.tarion.com/Warranty-Prote...rotection.aspx).

Builder bankruptcy is the one thing I did not think about when buying our home! there might be delays and in some cases cancellations, but bankruptcy? it's very unlikely...
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Old 2012-08-21, 01:27 PM
foxborough foxborough is offline
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It's a very good question as builders are not exempt from economic realities. Please remember that although your deposit is protected by Tarion, the deposit or down payment that you pay for your upgrades are not.

There is always a risk when you pay down large sums of money for a product that will not be delivered for some time. Luckily, Tarion significantly reduces that risk.
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Old 2012-08-21, 02:32 PM
Katharina Katharina is offline
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Thanks to all that replied. I feel more secure now. Thank you for your assistance.
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Old 2012-08-21, 04:16 PM
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Mattamy charges for upgrades up front?
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Old 2012-08-21, 04:24 PM
EastendGirl EastendGirl is offline
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Mattamy charges for upgrades up front?
Sort of.. They require a 35% deposit on upgrades while allowing the rest to be added to the purchase price. It was a bit of a surprise as I had to scramble to come up with some cash to cover the extra expense on top of my20k deposit.

That said, I was never concerned about losing my deposit due to the builder going bankrupt.. I was more concerned about potential delays. Luckily things are rolling along nicely in Phase 2 of Summerside.
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Old 2012-08-21, 08:27 PM
Rosedew Rosedew is offline
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Quote:
Originally Posted by EastendGirl View Post
Sort of.. They require a 35% deposit on upgrades while allowing the rest to be added to the purchase price. It was a bit of a surprise as I had to scramble to come up with some cash to cover the extra expense on top of my20k deposit.
Does the 35% deposit on upgrades count towards the down payment at closing?
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