Pre-construction questions, answered

You choose a project and a home, sign an Agreement of Purchase and Sale (APS) with the builder, and pay your deposit in instalments while the home is built. Near the end you do a walk-through (the pre-delivery inspection), then close: your mortgage funds, you pay the balance and closing costs, and you get the keys. Freehold homes usually take 1–3 years; condos often longer. The buyer's guide walks through each step.

No. On new homes the builder pays the agent's commission, so my help costs you nothing. One tip: bring me to your first visit or registration. Many builders only recognise an agent who was there from the start.

Every builder must be licensed on Ontario's Builder Directory with no convictions, revocations or licence conditions, have a real record of completed homes in the GTA, and have good homeowner reviews without a pattern of cancelled projects or delayed closings. You can check any builder yourself for free at obd.hcraontario.ca.

I only add tags like "Selling fast" or "Final release" when the builder or its official sales team says so publicly. I never add urgency on my own.

Before a project opens to the public, builders release pricing and first choice of homes to agents they work with. Registering for a project here puts you on that list, so you see plans and pricing early and often get launch incentives.

It depends on the builder. Deposits commonly add up to about 10%–20% of the price, paid in instalments over the first year or two. Freehold homes in Durham are often fixed amounts, for example a set amount on signing and more every 30–90 days. Each project page shows the deposit structure when the builder has published it, and your deposits count toward your down payment.

Freehold: Tarion protects deposits up to $60,000 on homes priced at $600,000 or less, and up to 10% of the price (maximum $100,000) above that. Condo: deposits must be held in trust or secured with deposit insurance under the Condominium Act, and Tarion covers up to $20,000 on top of that.

For new freehold homes, yes: for agreements signed from April 1, 2026, register at tarion.com within 45 days of signing to keep your full deposit protection. Condos are not part of this requirement.

Usually, yes. Builders normally quote new-home prices "HST included", with the standard new housing rebate assigned to them. On top of that, there's currently extra relief: up to $130,000 for all buyers on agreements signed April 1, 2026 to March 31, 2027, plus first-time buyer rebates. See the Incentives page for what applies right now.

Government programs (HST relief, first-time buyer rebates, land transfer tax refunds, development charge cuts) and builder bonuses (like free upgrades or capped closing costs) are all on the Incentives page. Expired programs are removed automatically.

Expect land transfer tax (Scarborough buyers pay Toronto's as well as Ontario's), legal fees, and the builder's closing adjustments: things like development charge increases, utility meter and hook-up fees and the Tarion enrolment fee. They're listed in Schedule B of the Tarion Addendum, so ask for caps before you sign. The mortgage calculator works out your land transfer tax.

Yes, with care on timing. The RRSP Home Buyers' Plan lets you withdraw up to $60,000, and the FHSA lets you save up to $8,000 a year ($40,000 lifetime) tax-free. Both generally need the home to be bought or built by October 1 of the year after you withdraw, so with a closing years away, buyers usually withdraw closer to closing. Check with your accountant before you withdraw.

You don't get your final mortgage until close to closing, but a pre-approval from a lender or mortgage specialist tells you your budget, and some builders ask for one. Pre-approvals usually last 90–120 days, so expect to re-qualify before closing. The mortgage calculator gives you a quick estimate first.

Your mortgage is approved and priced near closing, so the rates and rules at that time apply. Leave room in your budget. Some lenders offer longer rate holds for new construction. The calculator shows today's rates from the Bank of Canada so you can test a higher rate.

At least 5% of the first $500,000 and 10% of the rest, up to $1.5M. From $1.5M you need 20%. With less than 20% down you'll pay mortgage insurance, which is added to your mortgage. Your deposits to the builder count toward your down payment.

Lenders lend based on the appraised value at closing. If it comes in below your price, you cover the difference in cash. It's one reason to keep a cushion and to buy from established builders in strong locations.

Condos: yes, within a 10-day cooling-off period after you receive the signed agreement, the disclosure statement and the Condo Buyers' Guide. Freehold: a 10-day cooling-off period starts January 1, 2027. Until then, freehold agreements are usually firm when signed, so ask the builder for a lawyer-review condition before you hand over a deposit.

Yes. Have a real estate lawyer review the agreement before it becomes firm, especially the early termination conditions, the closing cost schedule and caps, and the assignment clause.

A builder can only cancel for the reasons allowed in the Tarion Addendum (like a planning approval not coming through), and must then refund your deposits with interest. If the builder misses the firm closing or occupancy date, you're entitled to compensation of $150 a day for living expenses plus receipted costs, up to $7,500, and $1,500 more if you got less than 10 days' notice.

You may move into a new condo before the building is registered. During that time you pay a monthly occupancy fee made up of interest on the unpaid balance, estimated property taxes and the projected condo fees. It doesn't go toward your price, and it lasts until the building registers, which can take a few weeks to over a year.

There are restrictions. The federal ban on non-Canadians buying residential property runs until January 1, 2027 (with some exceptions), and Ontario charges a 25% Non-Resident Speculation Tax on foreign buyers. Speak with a lawyer before you sign.

Often, but it depends on your agreement: most builders require their consent and charge an assignment fee. Since 2022, HST applies to assignment sales, and profit on a property held less than 365 days is generally taxed as business income. Talk to your lawyer and accountant first.

A walk-through with the builder just before you get the keys. You note anything unfinished or damaged on the form. After you move in, you can report issues to the builder on Tarion's 30-Day Form and Year-End Form.

Tarion's warranty: 1 year on workmanship and materials, 2 years on water penetration, electrical, plumbing and heating systems, and 7 years on major structural defects.