Pre-Construction Buyer FAQ and Calculators

You lock in today's price and pay only a deposit, usually spread over a year or two, while the building goes up. You get a brand-new home with a full Tarion warranty, and in 2026 new homes also qualify for HST relief that resale homes don't (see the next question).

The trade-offs: you wait several years, dates can move, closing costs are higher than on resale, and the market can fall before you close. In a slower market like as of October 2026, compare the new price with similar resale suites before you sign. Browse current projects on our all projects page.

Builders' prices usually include HST, with the standard rebates assigned to the builder; your agreement says exactly how. The rebates are much larger in 2026:

• Every buyer who will live in the home: for agreements signed from April 1, 2026 to March 31, 2027, Ontario's enhanced new housing rebate covers up to $80,000 of the 8% provincial HST and the Ontario New Home Affordability Payment adds up to $50,000: up to $130,000, or the full 13% HST on homes up to $1 million. It stays at that cap to $1.5 million and ends at $1.85 million.
• First-time buyers: the federal First-Time Home Buyers' GST rebate removes up to $50,000 of GST on new homes up to $1 million, phasing out by $1.5 million, for agreements signed on or after March 20, 2025 and before 2031.

Ask the builder and your lawyer whether the price already credits these amounts, or whether you claim them yourself.

Not the primary-residence rebates above. Investors usually pay the HST and then claim the new residential rental property rebate, which requires that the first tenant lives there for at least a year; Ontario also has an enhanced version for rental units (ontario.ca). Because the price usually assumes the rebate is assigned to the builder, investors often pay the rebate amount back at closing and then claim it. Check the CRA rules with an accountant before signing.

Monthly condo fees pay for running the building: common-area upkeep, building insurance, staff and amenities, and contributions to the reserve fund for future repairs. What else is included (heat, cooling, water, hydro) varies by building; many new buildings meter hydro and sometimes water separately. The builder's disclosure statement includes the budget for the first year after registration, so you can see the projected fees before you buy.

Usually, yes, with inflation and as the building ages. The first-year budget is an estimate by the builder; once owners elect a board, the board sets the budget, and a reserve fund study every few years decides how much must be saved for big repairs. When you compare buildings, look at the fee per square foot and what is included.

Tarion has administered Ontario's new-home warranty since 1976 (50 years in 2026). Every new home and condo from a licensed builder comes with: a 1-year warranty on workmanship and materials, a 2-year warranty on water penetration, the building envelope and electrical, plumbing and heating systems, and a 7-year warranty on major structural defects (Tarion coverage). Tarion also protects deposits and covers delayed closings within limits.

The Home Construction Regulatory Authority (HCRA) has licensed new-home builders and sellers since February 1, 2021. Before you sign, look the builder up in the HCRA's Ontario Builder Directory to see its licence, past homes and any regulatory actions. Tarion handles the warranty; the HCRA handles licensing and conduct.

For condos, deposits are generally held in trust, and Tarion protects up to $20,000 if the builder can't complete. For freehold homes, Tarion protects up to $60,000 if the price is $600,000 or less, and 10% of the price to a maximum of $100,000 above that. Builders set their own deposit schedules; your agreement says when each deposit is due.

Plan for land transfer tax (Ontario's, plus Toronto's in Toronto; first-time buyers get up to $4,000 and $4,475 back respectively, see our land transfer tax calculator), development charges and levies above any cap in your agreement, Tarion enrolment and utility meter fees, your lawyer's fees, and adjustments such as prepaid property tax. Read the schedule of extra charges in your agreement with your lawyer; the totals differ a lot between builders.

Development charges are fees cities charge to pay for roads, transit, water and parks for new homes. Many agreements let the builder pass increases on to you at closing, so ask for a cap that limits what you can be charged. Charges are falling in some cities: Toronto has secured funding to cut residential charges by 40% to 60% between 2026 and 2029 (City of Toronto), and Mississauga is cutting its charges in half for permits issued before March 30, 2029 (City of Mississauga).

Many builders ask for a pre-approval letter soon after you sign, and you need a firm mortgage before closing. Because closing can be years away, the lender will re-check your income, the rate and the appraisal then. Insured mortgages can run 30 years for new builds and are allowed on homes up to $1.5 million; all buyers must pass the stress test (the higher of the contract rate plus 2% or 5.25%, per OSFI). The Bank of Canada raised its rate to 2.50% on October 28, 2026, so leave room in your budget. Try our affordability calculator.

With a new condo you often move in before the building is registered. During this interim occupancy you pay a monthly occupancy fee instead of a mortgage: interest on the unpaid balance, estimated property tax and the projected condo fee. It is not paying down your purchase. Final closing happens once the condo corporation is registered; title transfers to you and your mortgage starts. This period often lasts several months.

Your agreement sets out the tentative and firm dates and how much notice the builder must give for each delay. If the builder misses the dates without a permitted reason, Tarion compensation can reach $7,500, including $150 a day for living expenses. Mutually agreed extensions and unavoidable delays are not covered.

Only if your agreement allows it. Many builders require consent, or charge an assignment fee. Since May 7, 2022, assignment sales of new homes are subject to GST/HST (CRA), and profits may be taxed as income. Get legal and tax advice before you plan to assign.

Adding or changing a buyer needs the builder's consent and often a fee, so it is easiest to sign with everyone on title from the start. Buying through a corporation is possible with some builders, but a corporation can't claim the primary-residence HST relief or first-time buyer rebates, and may pay other taxes. Talk to a lawyer and accountant first.

Yes. For a new condo you have a 10-day cooling-off period after you receive the agreement, the disclosure statement and Ontario's Condo Buyers' Guide; use it to have a real-estate lawyer review everything. Buyers of new freehold homes get a 10-day cooling-off period for agreements signed on or after January 1, 2027 (Tarion).

Some face limits. The federal ban on foreign buyers of residential property was extended to January 1, 2027. Foreign buyers who can buy pay Ontario's Non-Resident Speculation Tax of 25%, plus Toronto's 10% municipal tax in Toronto (City of Toronto). Toronto owners must also declare occupancy each year; empty homes pay a Vacant Home Tax of 3%.