Quick answer: Buying pre-construction in Ontario takes nine steps:
- Get pre-approved for a mortgage.
- Work with a buyer's agent, which costs you nothing.
- Compare projects and builders.
- Get access early through VIP or platinum events.
- Sign the agreement of purchase and sale (APS) and pay the first deposit.
- Have a lawyer review it during the 10-day cooling-off period.
- Pay deposit instalments while the home is built.
- Pick your finishes and do your pre-delivery inspection (PDI).
- Close.
From signing to keys usually takes 2–5 years.
Pre-construction is the only way to buy a brand-new home at today's price and pay for it over several years. It's also a different process from resale, with its own contracts, deposit schedules, taxes and protections. This guide walks through every step, in order, so you know what's coming before you sign anything.
What does "pre-construction" mean?
A pre-construction (or "pre-con") home is one you buy directly from a builder before it's built, sometimes before the shovels are even in the ground. You sign the agreement today, pay a deposit in instalments, and close when the home is finished. It applies to condos, townhomes, semis and detached homes.
| Pre-construction | Resale | |
|---|---|---|
| Who you buy from | The builder | The current owner |
| When you move in | Usually 2–5 years after signing | Usually 30–90 days after signing |
| Deposit | Paid in instalments over time | One deposit, usually within 24 hours |
| Cooling-off period | 10 days for condos (freehold from Jan 1, 2027) | None |
| Warranty | Tarion 1-, 2- and 7-year warranty | None, sold as-is |
| HST | Applies, but 2026 rebates can remove most or all of it | Doesn't apply |
Step 1: Get pre-approved before you shop
A builder doesn't need your mortgage on day one, but you do need to know your budget. Many agreements ask for proof of financing within about 30 days of signing. If you can't produce it after your cooling-off period ends, your deposit can be at risk.
Two pre-construction mortgage facts to know:
- Your lender will re-qualify you at closing. Your income, debts and the interest rate at closing matter more than your approval today. Avoid taking on new debt while you wait.
- The home must appraise at closing. If the appraisal comes in below your purchase price, you cover the gap in cash.
Step 2: Get your own buyer's agent (it's free)
The sales team in the presentation centre works for the builder. A buyer's agent works for you, and the builder pays their commission, so it doesn't cost you anything. A good pre-construction agent gets you:
- Earlier access to floor plans, pricing and the best units
- Comparisons between builders and projects
- Negotiation on deposits, closing cost caps and upgrades
- Help after closing with PDI, warranty claims, and leasing or resale
Many builders only pay an agent if the agent is registered with them on your first visit. Bring your agent before you walk into the sales office.
Step 3: Compare projects and builders
Price per square foot is only the start. Before choosing, compare:
- Builder track record: finished projects, delays and cancellations. Check the builder's licence and history on the Ontario Builder Directory (run by the Home Construction Regulatory Authority).
- Deposit structure: total percentage and how it's spread out.
- Closing cost caps: especially development charges and levies.
- HST terms: whether the price includes the rebate, and what you owe if you don't qualify.
- Occupancy dates: firm and outside (latest) dates.
- Assignment rights: whether you can sell before closing, and the fee.
You can browse current Ontario projects, launches and pricing on the Buyprecon.ca map.
Step 4: Get early access (VIP and platinum)
Most projects release units in phases. Agents with builder relationships get "platinum" or "VIP" access before the public launch. That usually means first pick of floor plans and views, launch pricing, and sometimes better deposit structures or extras. Later phases are often priced higher.
Step 5: Sign the agreement and pay your first deposit
You'll sign the builder's APS and pay the first deposit, often by bank draft. Your package should include:
- The signed agreement and all schedules
- The Tarion Addendum
- For condos, the disclosure statement and Ontario's Condominium Buyers' Guide
Learn how much you'll pay and how it's protected in our guide to pre-construction deposits.
Step 6: Use your 10-day cooling-off period
Condo buyers can cancel for any reason within 10 days and get their deposit back. Starting January 1, 2027, buyers of new freehold homes get the same right. Use the 10 days to:
- Have a pre-construction lawyer review the APS
- Confirm your mortgage pre-approval
- Check the closing cost caps and the HST clause
To cancel, give the builder written notice before the 10 days run out.
Step 7: Pay deposits while the home is built
Deposits come due on the dates in your schedule, often at 30, 90, 180 and 365 days. Put every date in your calendar, because missing one can put you in default. For freehold homes, register your agreement with Tarion within 45 days of signing to protect your full deposit coverage.
Step 8: Choose finishes and do your PDI
You'll book a décor appointment to choose flooring, cabinets, counters and upgrades. Upgrades can add up quickly, so set a budget first. Before you move in, you'll do a pre-delivery inspection (PDI) with the builder to record anything damaged, incomplete or not working. Anything noted on the PDI form is easier to get fixed under warranty.
Step 9: Close
- Freehold homes close in one step. You pay the balance and closing costs, and you get the keys and the title.
- Condos close in two steps. At occupancy you move in and pay a monthly occupancy fee. At final closing, once the building is registered, you take title and your mortgage starts.
See every cost to expect in our pre-construction closing costs checklist.
How long does pre-construction take?
| Home type | Typical time from signing to keys |
|---|---|
| Low-rise (towns, semis, detached) | About 1.5–3 years |
| Mid-rise condo | About 3–4 years |
| High-rise condo | About 4–5+ years |
Typical ranges only. Your agreement lists the builder's firm and outside dates, and Tarion's delayed-closing compensation applies if those are missed.
Is pre-construction right for you?
It suits you if:
- You can wait for your home
- You want to save gradually through the deposit schedule
- You want a new home with a warranty
- You want to take advantage of the 2026 HST rebate
It's a poor fit if:
- You need to move soon
- Your income is uncertain
- You'd struggle to cover a low appraisal or closing costs in cash
Weighing the two options? Read pre-construction vs resale in 2026.
Related reading: Ontario HST Rebate on New Homes · Pre-Construction Deposits in Ontario · Pre-Construction Closing Costs in Ontario
Frequently asked questions
How does buying pre-construction work in Ontario?
You sign an agreement with the builder, pay a deposit in instalments while the home is built, choose your finishes, inspect the home at your PDI, then pay the balance and closing costs at closing. Condo buyers pay a monthly occupancy fee between moving in and final closing.
Do I need a realtor to buy pre-construction?
You don't need one, but it's free. The builder pays the buyer's agent, and the agent represents you rather than the builder. Register your agent with the builder on your first visit.
How much do I need to buy pre-construction?
Condos commonly need 15–20% in deposits spread over 1–2 years. Freehold homes often need 5–10%. You'll also need closing costs and, at closing, the rest of your down payment.
Can I back out of a pre-construction purchase?
Within the 10-day cooling-off period, yes, for any reason. This applies to condos now and to new freehold homes from January 1, 2027. After that, you generally can't cancel without losing your deposit, but you may be able to sell your contract through an assignment.
Is the deposit safe if the builder goes bankrupt?
Condo deposits must be held in trust or insured, and Tarion backs the first $20,000. Freehold deposits are covered by Tarion: up to $60,000 on homes priced $600,000 or less, and up to 10% of the price (maximum $100,000) on more expensive homes.
How long does it take to get the keys?
About 1.5–3 years for low-rise homes, and 3–5+ years for condos, depending on the project.
About the author: Ola Otubu is a REALTOR® with Realty ONE Group Reveal, Real Estate Brokerage, and the founder of Buyprecon.ca. He represents buyers of new construction homes and condos across Ontario, from the first deposit through PDI, closing and warranty claims.
This article is general information, not legal, tax or mortgage advice. Rules and timelines vary by project and can change. Have a real estate lawyer review your agreement before your cooling-off period ends. Sources: Tarion; Home Construction Regulatory Authority; Condominium Act, 1998.
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