Quick answer: Buying pre-construction in Ontario follows this order:
- Get a mortgage pre-approval.
- Register a buyer's agent with the builder (free to you).
- Choose a project and unit.
- Sign the agreement of purchase and sale and pay the first deposit.
- Have a lawyer review it within the 10-day cooling-off period.
- Pay deposits on schedule.
- Choose finishes.
- Do your pre-delivery inspection (PDI).
- Close. Condos close in two stages: occupancy, then final closing.
Below are answers to the questions buyers ask most.
Part of our Pre-Construction Investing & Buying Guide. For a full walkthrough, see How to Buy Pre-Construction in Ontario.
Getting started
What is a pre-construction home?
A home you buy directly from a builder before it's built, or while it's being built. You sign the agreement and pay deposits now, and you close when the home is finished. It can be a condo, townhome, semi or detached home.
Do I need a realtor to buy pre-construction?
You don't need one, but it costs you nothing. The builder pays the agent's commission. The sales team at the presentation centre represents the builder. Your own agent represents you, gets you early access, and negotiates on your behalf. Register your agent on your first visit, because some builders won't recognize an agent added later.
What is VIP or platinum access?
An early sales phase for agents and their clients, before the public launch. It usually offers first pick of floor plans and views, launch pricing and sometimes better incentives.
What is a worksheet?
A form you submit through your agent to request specific units (usually your first, second and third choice) during a launch. It's not a binding agreement. If the builder allocates you a unit, you're invited to sign the agreement of purchase and sale.
What do I need to bring to sign?
Usually government-issued photo ID, your first deposit cheque or bank draft, a void cheque or post-dated cheques for later deposits (depending on the builder), and your lawyer's contact information.
The agreement and cooling-off period
What is the agreement of purchase and sale (APS)?
The binding contract between you and the builder. It sets the price, deposit schedule, occupancy dates, closing costs, assignment rules and much more. Pre-construction agreements are long and builder-friendly, so they need a lawyer's review.
Is there a cooling-off period on pre-construction?
For condos, yes: 10 days under the Condominium Act. For new freehold homes, a 10-day cooling-off period starts on January 1, 2027. You can cancel within the period for any reason by giving written notice, and your deposit is returned. Read more in our freehold cooling-off guide.
When does the 10 days start?
For condos, on the later of the day you receive the fully signed agreement, the disclosure statement and the Condominium Buyers' Guide. For freehold homes from 2027, once you've received the signed agreement and the new prescribed information sheet and addendum.
Can I change my mind after the cooling-off period?
Generally not without losing your deposit. Your options are an assignment (if allowed), a negotiated release with the builder, or termination rights if the builder misses deadlines or makes material changes.
Deposits and upgrades
How much is the deposit?
Condos commonly need 15–20%, paid in instalments over one to two years. Freehold homes often need 5–10%. See our deposit guide for how deposits are protected.
Can I pay the deposit with a credit card?
Almost never. Builders typically accept bank drafts, certified cheques or post-dated cheques.
When do I choose finishes and upgrades?
At a décor or design centre appointment, usually months or years after signing. You choose from standard finishes and paid upgrades. Upgrades are often charged with HST and payable in advance. For freehold homes, they count toward your Tarion deposit protection limit.
Timing and construction
How long does pre-construction take?
Freehold homes often take 1.5–3 years. Mid-rise condos often take 3–4 years, and high-rise condos 4–5 years or more.
Can the builder delay my closing?
Yes, within limits set by the Tarion Addendum. The builder can set tentative dates and extend them with proper notice up to an outside date. If the builder misses the firm date without proper notice, you may be entitled to delayed-closing compensation from Tarion.
Can I visit the site during construction?
Usually not, for safety reasons. Most builders offer progress updates by email, and some hold scheduled walkthroughs.
Can the builder change my unit?
Most agreements allow minor changes to size, layout or materials. Read the clause carefully. Major changes may give you rights under the Condominium Act or your agreement.
Moving in
What is a PDI?
The pre-delivery inspection. Before you take possession, you walk through the home with the builder's representative and record anything damaged, incomplete or not working. It's the starting point for your warranty claims, so be thorough and take photos.
What's the difference between occupancy and closing for a condo?
At occupancy, you move in and start paying a monthly occupancy fee to the builder. At final closing, after the building is registered, you take legal ownership and your mortgage starts. See our occupancy and closing FAQ.
More FAQs: Financing · Occupancy & Closing · Legal Questions
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 advice. Every agreement is different. Have a real estate lawyer review yours before your cooling-off period ends. Sources: Tarion; Condominium Act, 1998; Homeowner Protection Act, 2024.
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