There is no better answer to this question than to provide you with the link directly from CRA’s website. This way, nothing will be lost in translation!
Contrary to what has been told for years…or at least this is what I discover when I follow the math. If you’re bringing to the table, say 5% plus closing costs, and the bank the other 95%. Together that’s 100% of purchase price that includes commissions.
I am not a believer in them from a BA point of view! It is a clause written to allow the buyer perceived privilege of automating their bid above the highest in efforts to win out. They also tell us what they’re willing to pay because there’s a cap on your escalation. I’m a savvy REALTOR, and I will counter back removing this clause from the offer with their max bid as a new price if it satisfies you.at your max bid! Don’t accept it! Leverage it!