A Growing Number of GTA Homebuyers Are Choosing to Walk Away from Their Massive Deposits

Homebuyers in the Greater Toronto Area (GTA) suburbs are struggling to close their property transactions, leading some to walk away from substantial deposits. This trend is due to falling appraisals, mortgage qualification challenges, and declining home prices. The issue is more prevalent in lowrise homes and areas outside of Toronto. Experts see this as a potential indicator of future market issues. Deposits in the real estate market typically represent 20% of the purchase price and are retained by the builder if the deal falls through.

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