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Buyer’s Guide

Buying a pre-construction home in Ontario means signing with a builder today, paying a deposit over several months, and closing when the home is finished, usually one to three years later. This guide walks through each stage for freehold townhomes and detached homes in the GTA, and what protects you along the way.

Last updated: October 2026.

1. Set your budget and get pre-approved

Speak with a mortgage professional before you shop. A pre-approval shows what you can borrow and what monthly payment fits. Remember that you will qualify for the mortgage again closer to closing, so keep your credit and income stable. First-time buyers should also look at the FHSA, Home Buyers’ Plan and HST rebates.

2. Choose the area and home type

Compare cities, commute, schools and price. Back-to-back and traditional townhomes usually offer the lowest entry price; semi-detached and detached homes cost more but come with more space and larger lots. Browse projects by city: Brampton, Mississauga, Bolton, Oakville, Pickering, East Gwillimbury and Niagara Falls.

3. Register early for VIP access

Builders usually release homes to brokers and registered buyers before the public launch, often with lower “VIP” pricing, better lot choice and extra incentives. Registering on a project page gets you the price list, site plan and deposit structure as soon as they are released.

4. Pick your lot and model

Look at the site plan for lot size, orientation, what the home backs onto, and premiums for corner or ravine lots and upgraded elevations. Ask which features are standard and which are upgrades.

5. Sign the agreement of purchase and sale

The builder’s agreement includes the Tarion Addendum, which sets out closing dates, delay rules and allowable adjustments. Have a real estate lawyer review it. Look closely at:

  • the deposit schedule and who the cheques are payable to
  • closing adjustments and any caps on development charges and utility fees
  • how HST and rebates are handled
  • assignment rules, if you might want to sell before closing

Unlike condominiums, which have a 10-day cooling-off period, freehold homes have no automatic cooling-off period in Ontario, so get the review done before you sign or make your offer conditional on it if the builder agrees.

6. Pay your deposits

Freehold deposits are typically 10% of the price, paid in instalments. For example, a builder might ask for $10,000 with the offer and further payments at 30, 90, 150 and 180 days. Tarion protects freehold deposits up to $60,000 on homes priced at $600,000 or less, and up to 10% of the price to a maximum of $100,000 on homes over $600,000. To get full coverage, notify Tarion of your purchase within 45 days of signing.

7. Wait for construction

The builder will contact you to choose colours and finishes at the design studio, where upgrades are priced. You may receive notices about closing dates. Ontario’s Tarion Addendum limits how and when builders can extend closing, and buyers can be compensated for certain delays.

8. Pre-delivery inspection

Before closing, you walk through the finished home with the builder and record anything incomplete or damaged on the pre-delivery inspection form. This list is the starting point for warranty service.

9. Close and move in

Your lawyer receives the builder’s statement of adjustments, collects your down payment balance and closing costs, registers the title and hands you the keys. Budget about 1.5% to 4% of the price for closing costs.

10. Use your warranty

Every new home in Ontario comes with the statutory warranty: one year for workmanship and materials, two years for items such as water penetration and electrical, plumbing and heating systems, and seven years for major structural defects. Submit warranty forms to your builder within the required time windows.

Buyer’s guide questions

How long does it take to build a pre-construction home?

It depends on the project. Many freehold townhome and detached communities close one to three years after signing. The first tentative closing date is set out in your agreement.

Is my deposit safe if the builder goes bankrupt?

Tarion protects freehold deposits up to $60,000 on homes priced at $600,000 or less and up to $100,000 on homes over $600,000, as long as you notify Tarion within 45 days of signing. Deposits above those limits are not covered.

Can I sell my pre-construction home before closing?

Often yes, through an assignment, but builders usually require their consent and charge a fee, and some don’t allow public listing. Check the assignment clause before you sign.

Does it cost more to buy through a broker?

Usually not. On new construction, the builder typically pays the brokerage’s commission, and working with a broker can give you access to VIP pricing and lot selection before the public launch.

Ready to compare projects? Browse all projects, contact UB Realty Inc., Brokerage, or call 647-381-4000. This guide is general information, not legal advice.