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https://savebigcommission.ca/condo-property-details?id=152

The Fifth at Charisma | 8960 Jane St The Fifth at Charisma | 8960 Jane St

What are occupancy periods and occupancy costs?
Since you are buying an unbuilt condo unit, the developer needs time to finish the project. You receive ownership of the unit when the building is completed and registered with the city, but you can move in about 3-6 months before this date. This period is called the occupancy period or the interim-occupancy period.

The occupancy period starts when your municipality declares the building as “fit for occupancy”. During this period, you live in the unit without owning it. With the builder’s permission, you can also rent this unit out to tenants. The occupancy period typically lasts for 3-6 months but is shorter if you live on higher floors since these units are constructed last.

During the occupancy period, you will also be required to pay occupancy costs or interim occupancy fees, which are monthly payments to your developer. You are effectively renting the unit from the developer until you receive ownership. You can use your tenants’ rent to cover this fee if you rent the unit out. The Condominium Act prohibits developers from profiting using this fee, but you can still profit by collecting rent payments. Any interest earned on this fee is paid back to you and taxes are calculated after consideration for any amount repaid. Generally, you can expect to pay an occupancy fee close to interest payments on a mortgage plus any municipal taxes or condominium fees.