Buying pre-construction in Ontario
What happens between registering and getting your keys, and the protections and rebates that apply to new homes in 2026.
The process
- Registration. Builders collect interest before launch. Registered buyers and agents get floor plans and pricing first, often with launch incentives.
- Choosing a unit. Compare layouts, exposure, floor or lot premiums, and the deposit structure.
- Signing. You sign the Agreement of Purchase and Sale and pay the first deposit. On a new condo the 10-day cooling-off period starts once you have the signed agreement and the disclosure statement.
- Lawyer review. Have a real estate lawyer review caps on development charges, assignment clauses, the occupancy date and delay terms, and HST rebate assignment.
- Construction. You pay the remaining deposits on schedule. The builder must give formal notice of any change to the tentative occupancy date. Tarion's delayed-closing rules apply.
- PDI and closing. At the pre-delivery inspection you record any defects. Condos usually go through interim occupancy before final closing; freehold homes close in one step.
Deposits and Tarion protection
Tarion protects deposits on new homes from Ontario builders if the builder can't finish or goes bankrupt:
- Freehold homes (agreements from Jan 1, 2018): up to $60,000 if the price is $600,000 or less; 10% of the price, to a maximum of $100,000, above that.
- Condos: up to $20,000 from Tarion. Condo deposits must also be held in trust under the Condominium Act.
Tarion has announced a new step for freehold buyers, taking effect January 1, 2027: to get full deposit coverage, you'll need to give notice within 45 days of signing. Check Tarion's site for the current rules when you buy.
HST rebates on new homes, 2026
New homes are subject to 13% HST, but three rebates can take most or all of it off an eligible home:
- Temporary enhanced Ontario rebate (2026 Ontario Budget): for agreements signed April 1, 2026 to March 31, 2027, it removes the full 8% provincial portion on eligible new homes up to $1 million (up to $80,000), keeps $80,000 up to $1.5 million, and reduces it above that. It's for owner-occupied homes and has construction and completion deadlines.
- Federal first-time home buyers' GST rebate: up to $50,000 (the full 5%) on new homes up to $1 million, phasing out to zero at $1.5 million. It applies to agreements from May 27, 2025.
- Proposed federal match for buyers who aren't first-time: announced alongside the Ontario measure, but it needs federal legislation before it applies. Combined relief is quoted at up to $130,000.
Many builders quote prices "net of rebates" and credit the rebate on closing. If you turn out not to qualify, the builder will add that amount back at closing. Estimate your rebate.
Closing costs to budget for
- Land transfer tax: provincial, plus municipal in Toronto. First-time buyers get up to $4,000 back from Ontario and up to $4,475 from Toronto. Calculate
- Development charges and levies: often capped in the agreement. Anything above the cap is charged to you on closing.
- Tarion enrolment fee, and utility meter and connection fees.
- Legal fees and title insurance.
- Condo only: occupancy fees during interim occupancy, and the first months of common expenses.
Frequently asked
How much deposit do I need for a pre-construction condo?
Most GTA condo projects ask for 15–20% of the price in instalments over the first one to two years, and some add 5% at occupancy. Extended structures spread the payments further apart. The actual schedule is in each project's price list.
How much deposit do I need for a new freehold home?
Freehold builders usually ask for fixed amounts, often $60,000–$150,000, paid within the first 3–6 months. Dreamscape in Oshawa, for example, asks for $90,000 on its 30-foot homes, paid over 120 days.
Can I cancel after signing?
For a new condo, yes: you have 10 days after receiving the signed agreement and disclosure statement to cancel for a full refund, under the Condominium Act. Freehold homes have no statutory cooling-off period, so have a lawyer review the agreement first.
What is "interim occupancy"?
In a condo you usually move in before the building is registered as a condominium. Until then you pay a monthly occupancy fee (interest on the unpaid balance, estimated taxes and common expenses), and that money does not reduce your mortgage. Final closing follows once the condo is registered.
What extra costs come on closing?
Expect land transfer tax, legal fees, and on new homes, possible adjustments for development charges, the Tarion enrolment fee, utility meter and connection fees, and any HST rebate the builder credited but you don't qualify for. Ask whether development charges are capped before you sign.
Can I sell before closing?
Only if the agreement allows an assignment. Many builders charge an assignment fee and limit marketing until a set percentage of units are sold. Check the clause before you sign.
Do you charge buyers a fee?
No. On new-construction purchases the builder normally pays the co-operating brokerage. We'll confirm this in writing for your project before you sign anything.
General information only, not legal or tax advice. Sources: Condominium Act, 1998 (s.73); Tarion Warranty Corporation; 2026 Ontario Budget; Canada Revenue Agency.
Have a question about a specific project?
Send the project name and your situation. We'll look at the agreement terms, deposit schedule and rebate eligibility with you before you commit.
- Floor plans and current price lists
- Deposit structures and incentives before public launch
- A straight answer on whether a project fits your budget and plans