Pre-Construction Homes in Toronto: A Buyer’s Guide

By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026

Buying a pre-construction home or condo in Toronto means buying something that doesn’t exist yet. You may get a brand-new home, modern finishes and time to save while it’s built, but you also take on years of waiting, a large deposit and contract terms written by the builder. This guide walks through how buying pre-construction works in Ontario, what it really costs, and how to protect yourself.

How buying pre-construction works in Ontario

1. Choose a project and builder. Check the builder’s licence and history in the Home Construction Regulatory Authority’s Ontario Builder Directory, and see past projects.
2. Sign the agreement and receive the disclosure statement (for condos).
3. Use your cooling-off period to have a real estate lawyer review the agreement.
4. Pay deposits on the builder’s schedule.
5. Choose finishes and upgrades at the design centre.
6. Interim occupancy (condos): you move in before the building is registered and pay a monthly occupancy fee.
7. Final closing: ownership transfers to you, your mortgage funds, and you pay the closing adjustments.

Deposits

Deposits on new homes are protected up to set limits through Tarion, and condo deposits above that coverage must be held in trust or insured under Ontario’s Condominium Act. Read more in my guide to deposits.

The 10-day cooling-off period

For new condos bought from a builder, Ontario’s Condominium Act gives buyers 10 days to cancel, starting when you receive both the signed agreement and the disclosure statement, and your deposit is returned. Use this time to have a lawyer review the agreement. New freehold homes don’t have a legal cooling-off period unless the builder offers one, so have the agreement reviewed before you sign.

Costs to plan for

• HST: new homes are subject to 13% HST, but 2025–2026 rebates can cover much or all of it for eligible buyers. See my GST/HST guide.
• Closing adjustments: development charges, education levies, utility connections and Tarion enrolment. Negotiate caps in your agreement.
• Occupancy fees during interim occupancy (condos): roughly the interest on your unpaid balance, estimated property tax and condo fees. None of it reduces your mortgage.
• Land transfer tax and legal fees on final closing. See my closing costs guide.

Risks and how to protect yourself

• Financing risk: you need a mortgage when the home is finished. If rates rise or your income changes, you may qualify for less. Keep your finances stable and stay in touch with your lender.
• Appraisal risk: if the home appraises below your purchase price at closing, you’ll have to make up the difference in cash.
• Delays: builders can extend closing dates within the rules, and Tarion provides compensation for some delays. Read the critical dates in your agreement.
• Cancellations: projects are sometimes cancelled. Your deposit is protected, but you lose time and may face higher prices elsewhere.
• Assignments: if you may need to sell before closing, check whether the builder allows assignments and what fees apply.

Tarion warranty

New homes in Ontario come with a statutory warranty through Tarion: 1 year for workmanship and materials, 2 years for items such as water penetration and electrical, plumbing and heating systems, and 7 years for major structural defects. Do a thorough pre-delivery inspection (PDI) and submit warranty forms on time.

Buying pre-construction with Irina

I help buyers compare projects and builders, understand the agreement before it’s signed, and plan deposits and financing so closing day has no surprises. For current condo projects and an interactive map, visit my condo site, Toronto Condos & Pre-Construction. Or get in touch.

Pre-construction FAQ

General information, not legal advice. Have a real estate lawyer review any builder agreement before or during your cooling-off period.