Toronto Home buyers continue to face fewer Homes for sale and as a result of bidding wars even higher prices.
Before buyers bid on the many homes for sale in desirable areas of Toronto, they better have credit, down payment and income to support the last sold price.
Mortgage brokers and appraisers closely watch buyers credit with a pre-approval process.
Problems can arise when a buyer wins a bidding war over the asking price bu the appraised value is short and the buyer has no extra money for the sales amount.
The seller would keep the deposit and move on to the second highest bidder if available and possibly sue the original buyer for the full agreed sales amount.