Updated September 2026
New subdivisions and condo buildings keep going up across our area, from East Gwillimbury and Bradford to Innisfil and Barrie. Buying from a builder is a different process from buying a resale home. The contract is the builder's own, closing can be months or years away, and your protection comes from a mix of Tarion, the Condominium Act and tax rules. Here is what Ontario buyers should know before signing.
Check the builder first
Every new home builder and vendor in Ontario must be licensed by the Home Construction Regulatory Authority (HCRA). Look the builder up in the HCRA's Ontario Builder Directory before you sign. It shows whether the builder is licensed, how many homes it has built, its warranty history and any convictions. Then visit homes the builder has already finished, and talk to people who live in them if you can.
The agreement is the builder's, not a standard form
A resale purchase in Ontario usually uses a standard real estate association form. A builder's agreement is written by the builder's lawyers, and it favours the builder. Have a real estate lawyer review it before you are bound by it. Pay particular attention to:
the Tarion Addendum and its Statement of Critical Dates, which sets out your closing or occupancy dates and how they can change
closing adjustments, which are extra charges added at closing. Ask for a list of every one and whether any are capped
what is included in the price, and what counts as an upgrade
whether you can assign the agreement, and what that would cost
The sales staff at a builder's office work for the builder. You can bring your own agent to represent you.
Cooling-off periods
If you are buying a new condo, the Condominium Act gives you 10 days to cancel after you receive both the disclosure statement and a copy of the agreement signed by you and the builder. Cancel in writing, within that window, and your deposit comes back.
New freehold homes (detached, semi-detached and freehold townhouses) have had no equivalent right. Ontario has set a 10-day cooling-off period for new freehold homes that applies to agreements signed on or after January 1, 2027. If you sign before then, ask for a lawyer review condition before the agreement becomes firm.
Deposits and how they are protected
New home deposits are often paid in instalments over many months, so it matters how they are protected. According to Tarion, for agreements signed on or after January 1, 2018:
Freehold homes: deposits are protected up to $60,000 on homes priced up to $600,000. Above that, protection is 10% of the purchase price, up to $100,000.
Condos: deposits are protected up to $20,000, plus a limited amount of interest.
Payments for upgrades and extras count toward that protection.
Condo deposits above Tarion's limit are covered by separate rules under the Condominium Act. Ask your lawyer how every dollar you pay will be protected.
Delays
Construction delays are common, so read the Statement of Critical Dates closely. If your closing (or, for a condo, your occupancy) is delayed past the firm date and no exception applies, Tarion says you can be paid $150 a day for living expenses, plus other costs you can show receipts for, up to $7,500. If the builder doesn't give you at least 10 days' notice of a delay, you are owed $1,500.
If you are selling your current home to buy, plan for delays. Line up your sale and your financing so that a later closing date doesn't leave you stranded. Our guide to buying before you sell covers the options.
Interim occupancy for new condos
With most new condos, you move in before the building is registered and before you take ownership. During that interim occupancy, you pay a monthly occupancy fee made up of interest on the unpaid balance, estimated common expenses and estimated property taxes. None of it goes toward your purchase price, so budget for it.
The pre-delivery inspection and your warranty
Before you take possession, the builder walks you through the home in a pre-delivery inspection (PDI). Note every problem on the PDI form. Once you move in, Tarion's warranty runs for set periods:
One year: defects in work and materials, Ontario Building Code violations and unauthorized substitutions. The home must also be fit to live in.
Two years: water coming through the basement or foundation walls, defects in the exterior cladding, defects in the electrical, plumbing and heating systems, and Building Code violations that affect health and safety.
Seven years: major structural defects.
Warranty claims are made on Tarion forms within set windows, including one in your first 30 days and one near the end of your first year. Put the deadlines in your calendar the day you move in. Many buyers also hire an independent home inspector before the one-year warranty ends.
HST rebates on new homes
HST applies to new homes. Most builder prices include it, with any rebates you qualify for assigned to the builder, so ask exactly how each rebate is being credited to you.
Federal: the First-Time Home Buyers' GST rebate removes up to $50,000 of GST for first-time buyers on new homes up to $1 million, phasing out between $1 million and $1.5 million. It applies to agreements signed on or after May 27, 2025.
Ontario: the regular Ontario new housing rebate is up to $24,000. The 2026 Ontario Budget announced an enhanced rebate of up to $80,000 for all eligible buyers of a new home they will live in, not just first-time buyers, on agreements signed between April 1, 2026 and March 31, 2027. It covers the full 8% provincial portion of the HST on homes up to $1 million, stays at $80,000 up to $1.5 million, and phases down to $24,000 at $1.85 million.
Eligibility rules are detailed, so confirm the current status of each rebate with your lawyer before you count on it.
Selling before you close: assignment sales
If your plans change before closing, you may be able to assign your agreement to another buyer. Most builder agreements require the builder's consent and charge a fee. Since May 7, 2022, GST/HST applies to assignment sales of new homes. Under the federal property flipping rule, a profit on a home or an agreement held for less than 365 days can be taxed as business income unless an exception applies. Speak to an accountant before you list an assignment.
Three common assumptions to check
"The price on the sign is the final price." Upgrades, closing adjustments and interim occupancy fees can add to it.
"I don't need my own agent at a sales office." The builder's staff represent the builder. Your own agent can compare the new home with resale homes nearby and help you review the terms.
"A brand-new home doesn't need an inspection." The PDI and warranty forms are where problems get recorded. An independent inspection before your warranty windows close can catch what you might miss.
Talk to us
Our team has helped buyers and sellers across York Region, Simcoe County and Durham since 1989. If you are weighing a new build against a resale home, or need to sell your current home first, call us at (905) 830-9111.
