Pre-Construction and New Homes: What to Know Before You Buy

Buying a brand-new home or a pre-construction condo can be exciting. You may be able to choose your finishes, and you will be the first person to live in the home. There are also important differences from buying a resale home, and I want to make sure you understand them before we move forward.

1. Deposits are paid over time

With pre-construction, you usually pay your deposit in instalments over months or years before the home is completed. Make sure the deposit schedule fits your budget, and ask your lawyer how your deposits are protected.

2. The 10-day cooling-off period for new condos

For new condominium purchases in Ontario, the Condominium Act gives buyers a 10-day period after signing to cancel the agreement and get their deposit back. This is a valuable window to have a lawyer review the agreement and the disclosure documents. Freehold new homes do not have the same cooling-off period, so a lawyer's review before signing is especially important.

3. Tarion warranty protection

New homes in Ontario are covered by warranty protection administered by Tarion, which includes coverage for certain defects and, in some cases, delayed closings and deposits. Your lawyer can explain what applies to your purchase.

4. Understand occupancy and final closing

With new condos, there is often an interim occupancy period, when you move in and pay an occupancy fee before the building is registered and your purchase closes. Timelines can also change, so it is important to plan with some flexibility.

5. Watch for extra closing costs

Builder agreements can include additional costs on closing, such as development charges, utility hookup fees and HST adjustments. A lawyer's review before you sign will help you understand these costs in advance.

6. Resale vs. new: which is right for you?

A resale home lets you see exactly what you are buying and move in sooner. A new home offers modern finishes and warranty coverage. I will help you compare both options within your budget and timeline.

If you are considering a new home or pre-construction condo, I'm here to help you ask the right questions before you commit.

This guide is general information, not legal, tax or financial advice. Rules and programs can change, so please confirm the details for your situation with your lawyer, lender or accountant.

If you have any questions, please don't hesitate to reach out. I'm always happy to assist.

Anis Khairkhwa, Broker · eXp Realty
(647) 648-4552 · anis.khairkhwa@gmail.com