Brad Milne is the Vice President and General Counsel of Statesman Corporation. “Thirty years ago, people were adverse to buying condominiums. You didn’t always know what you were getting into. Now, because of the reserve fund study that has to be done, when you buy a condominium, you can feel comfortable if the roof is 20 years old. There is a reserve fund in place for what it’s going to cost to replace that roof.”

If you’re a first-time buyer or veteran condominium owner, the first thing you must do is read the contract. You might consider hiring a document review service to help you sort through the binder full of documents you receive at the time of purchase. You will also need a lawyer to help interpret issues that might help save you grief later.

When it comes to mortgages, Kevin Ingalls, Statesman’s Chief Financial Officer, reports, “Our sales reps will set up relationships with a few of the banks so they are familiar with our project. A great number of purchasers come through without financing up front. Our job is to make it easy for them every step of the process. The bank knows everything about our project, streamlines the process, and gets them a good deal. Some people are buying 18 months before they’ll actually close on the unit, so we have arrangements to lock in the rates. If they go to their own bank, their bank has to be brought up to speed and given all the information on the project. It can be a time-consuming process.”

Ingalls says the full amount of the purchase price isn’t paid until the purchaser moves in and is given title. “We’re a member of Alberta New Home Warranty and the maximum we can take on deposit is $30,000. Typically, we take the lesser of 10 per cent of the unit’s final value or $30,000 throughout the construction process. The bank steps in once construction is complete and the title is registered.”

To find out how much you can spend before you visit the builder, there’s always a mortgage broker. Jacqui Mulikow, mortgage consultant for Mortgage Intelligence Inc., says, “Long-held beliefs sometimes include the idea that mortgage brokers are only for people who have bad credit or were turned down by a bank. All home buyers can save time and money by enlisting the services of a broker.

“A mortgage broker has access to many competing lending institutions, including banks, pension funds, trust companies, and even private individuals. Since mortgage brokers do not have to sell the products of any one lender, they can be completely unbiased in recommending a mortgage that has the most attractive rate and features for their clients.”

Mulikow admits that lenders look at townhouses and apartments differently because of perceived resale. “Some lenders cut back the loan per value on condo apartments. For example, where you might get as much as 100 per cent financing in a townhouse, you might be cut back to 80 or 85 per cent in an apartment. In the past, a lot of the condo apartments were rented out, so they weren’t necessarily a good risk for the lender. Now you’re getting condo apartments for $250,000, and it’s a totally different ballgame.”

As a personal shopper for mortgages, Mulikow acts as the middleman between the lender and the buyer by pre-qualifying, gathering information, finding the right lender with the best product, and saving the client from running around town looking for the best rates. Builders know that by the time a loan has gone through the broker, it’s packaged and ready to go.

While builders have set up their own banking arrangements, some lenders are square-boxed. As a borrower, you have to fit in that square box. When they don’t, then it’s time to call a mortgage broker. That includes those whose credit is not that great or who may be self-employed.

So, thanks to the various controls and regulations unavailable 30 years ago, today there is a lot more confidence in the condominium market (as demonstrated by the city’s evolving skyline). And you can take that to the bank.