Pre-construction and investingNew homes, assignments and rental investments
Buying from a builder means signing years before you move in, under a contract written by the builder. I help you choose the right project, understand the deposit schedule and closing costs, use your cooling-off period well, and plan for closing, renting or assigning.
Project selection
Builder track record, location, floor plans and price per square foot compared with resale.
Early access
Platinum and VIP releases before public launch, where available.
Numbers before you sign
Deposit schedule, expected closing costs, maintenance fees, rent and cash flow.
Cooling-off review
Coordinate your lawyer's review of the agreement within the cooling-off period.
Through construction
Updates, Tarion registration, mortgage planning and pre-delivery inspection.
Lease or assign
Find a tenant at closing, or market an assignment if your plans change.
Pre-construction and investing · The process
Set your goal
Live in or invest? We plan for deposits spread over several years and the mortgage you will need at closing.
Choose the project
Compare builders, locations, floor plans, price per square foot and estimated maintenance fees against resale homes nearby.
Sign and pay the first deposit
Condo deposits are often paid in instalments over one to two years. Keep copies of every receipt.
New condo buyers have a 10-day cooling-off period. New freehold homes get one for agreements from January 1, 2027.
Lawyer review
Within the cooling-off period your lawyer checks caps on closing adjustments, development charges, the builder's termination rights, the assignment clause and the occupancy dates.
During construction
Register your purchase with Tarion as required, keep your finances stable and update your mortgage pre-approval as closing approaches.
Pre-delivery inspection
Walk through the home with the builder before you move in and list any defects on the PDI form.
Occupancy and final closing
For condos, you move in at occupancy and pay a monthly occupancy fee until the building registers. Final closing follows: mortgage funds, land transfer tax and HST rebates are processed.
Warranty period
Tarion warranty covers 1 year for workmanship, 2 years for items such as water penetration and systems, and 7 years for major structural defects. Submit the 30-day and year-end forms on time.
Things to watch
Deposit protection has limits
Condo deposits must be held in trust, and Tarion protects up to $20,000 if a builder does not return them. Freehold deposits are protected up to $60,000 for homes of $600,000 or less, or 10% of the price up to $100,000 above that.
Appraisal gap at closing
Your lender appraises the home at closing. If it values the home below your price, you cover the difference in cash.
Your mortgage is approved at closing
Rates and lending rules can change over the build. Leave room in your budget and keep your credit clean.
Delays and cancellations
Projects can be delayed, and builders can cancel if conditions in the agreement are not met. Tarion sets rules for delay notices and compensation.
Closing adjustments add up
Development charge increases, utility connections and Tarion fees can add thousands. Look for caps in the agreement.
HST for investors
Investors are usually not eligible for the new housing rebate at closing and pay it to the builder, then may claim the rental property rebate after signing a lease of at least one year.
Assignments and tax
Assignments usually need the builder's consent and a fee. Profit is taxable and may attract HST, and a sale within 365 days falls under the federal anti-flipping rule.
Common questions
How much deposit do I need?
Condos commonly ask for 15% to 20% paid in instalments over one to two years. Freehold homes vary by builder. The rest is due at closing.
Is my deposit safe?
Condo deposits are held in trust and Tarion protects up to $20,000; freehold deposits are protected up to $60,000, or 10% to $100,000 for homes over $600,000. Choosing an experienced builder matters.
Is there a cooling-off period?
Yes for new condos: 10 days. For new freehold homes, a 10-day cooling-off period applies to agreements from January 1, 2027.
What is an occupancy fee?
Between moving into a new condo and the building's registration you pay a monthly fee made up of interest on the unpaid balance, estimated maintenance fees and property tax. It does not reduce your price.
How much HST can a first-time buyer get back on a new home?
For agreements from March 20, 2025, the federal rebate is up to $50,000 (full for homes up to $1 million, reduced up to $1.5 million) and Ontario's rebate is up to $80,000. Your lawyer confirms eligibility.
Is there HST relief if I'm not a first-time buyer?
Ontario's temporary enhanced rebate covers agreements signed from April 1, 2026 to March 31, 2027 for eligible buyers: full relief of the provincial portion up to $1 million and $80,000 for homes from $1 million to $1.5 million.
Can I sell before closing?
Yes, through an assignment, if the agreement allows it. Expect a builder consent fee and tax on the profit.
Do I pay commission when buying from a builder?
Usually not. Builders typically pay the agent's commission, so having your own representation costs you nothing.
Buying a home in Toronto, step by step
Pre-approval, buyer agreement, viewings, offer conditions, deposit, lawyer and closing day.
Read the guide →CostsClosing costs to budget for in Ontario
Land transfer tax, legal fees, title insurance, inspection, PST on mortgage insurance and adjustments.
Read the guide →Other servicesBuying a home
Budget, area research, offer strategy, inspection and closing.
Learn more →Other servicesSelling your home
Free valuation, staging, photos, MLS® and Chinese-language marketing, negotiation.
Learn more →Other servicesLeasing
Rent pricing, tenant screening, Standard Lease, rentals for newcomers.
Learn more →Let's talk about your next move
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