Question 1

What adjustments will my lawyer bill me for on closing?

Accepted Answer

The statement of adjustments lists everything added to your purchase price at closing: development levies, utility connections, meter installations, Tarion enrolment, grading deposits, prepaid property taxes and the builder's administrative and legal fees. On a $1.1 million home this commonly runs $10,000 to $30,000.

Question 2

Do I get the HST rebate if I bought an assignment?

Accepted Answer

Often not the enhanced rebates. For the Ontario ENHR, both the original agreement and the assignment agreement generally need to fall inside the April 2026 to March 2027 window. Buying an assignment of an older agreement does not pull it into the program. Verify before you pay for the assignment.

Question 3

Can I assign a freehold pre-construction home before closing?

Accepted Answer

Only if your agreement permits it, and most low-rise agreements restrict or prohibit assignment or require the builder's consent plus a fee. Where it is allowed, it is often the best exit for a buyer who cannot close, but the HST and tax consequences are significant.

Question 4

What is bridge financing and will I need it?

Accepted Answer

Bridge financing covers the gap when your new home closes before your existing home sells or closes. On new construction it is harder to arrange than on resale, because builder closing dates move and lenders want firm dates on both sides.

Question 5

What are builder amendments and can I negotiate them?

Accepted Answer

Amendments are changes attached to the builder's standard agreement, capping levies, adding a deposit date, confirming an incentive, adjusting a closing provision. Some are negotiable, particularly on levy caps and incentives. What is negotiable depends on the project's sales position, not on how firmly you ask.

Question 6

What happens if the builder cancels the project?

Accepted Answer

Your deposit should be returned, and Tarion deposit protection covers it within limits, 10% of the price up to $100,000 on freehold homes over $600,000. You get your money back but not your opportunity: prices may have risen substantially while you waited.

Question 7

Why does my builder keep my HST rebate?

Accepted Answer

Most Ontario builder agreements price the home as HST-inclusive and require you to assign the rebate to the builder at closing. The builder credits the rebate against your price up front and claims it from CRA. If you turn out not to qualify, the builder bills you for the full amount on closing day.

Question 8

Are builder upgrades worth the money?

Accepted Answer

Structural upgrades that cannot be added later, rough-ins, extra windows, raised ceilings, a side door, are usually worth it. Cosmetic upgrades like flooring, cabinets and backsplashes are commonly priced well above what the same work costs after closing.

Question 9

Can I buy Ontario pre-construction from out of province or abroad?

Accepted Answer

Yes, though builders often require larger deposits from buyers who are not residents of Canada, and the HST rebates require the home to be a primary residence for you or a relation. Non-resident purchasers may also face additional taxes and restrictions.

Question 10

Can I cancel a pre-construction purchase agreement?

Accepted Answer

On a freehold home, generally not. There is no statutory cooling-off period, so you can only exit through a right written into your agreement or a builder default. Condominium purchases have a 10-day rescission right. Walking away without a legal basis risks your deposit and more.

Question 11

Can I claim the federal and Ontario HST rebates together?

Accepted Answer

Yes. The federal first-time buyer GST rebate and the Ontario Enhanced New Housing Rebate are separate programs covering different portions of the HST, and an eligible buyer can claim both. The Ontario top-up also rides along with the ENHR, but it is reduced by whatever federal rebate you claim.

Question 12

What are the closing costs on a new construction home in Ontario?

Accepted Answer

Budget roughly 2% to 4% of the purchase price. On a $1,100,000 freehold home outside Toronto, expect about $30,000 to $45,000: land transfer tax of roughly $18,475, development levies, utility connections, Tarion enrolment, legal fees and grading deposits.

Question 13

What happens if my pre-construction closing gets delayed?

Accepted Answer

Delays are normal and the agreement usually permits the builder to extend. Tarion's delayed closing compensation can provide up to $7,500 in total, including living expenses at $150 per day, but the claim must be made to the builder within 180 days and the statutory notice rules must have been met.

Question 14

Can I make a pre-construction offer conditional on financing?

Accepted Answer

Rarely on a builder purchase. Most Ontario builder agreements for new low-rise are firm, with no financing condition, and builders resist adding one. Instead you are typically required to satisfy the builder of your qualification up front, which is not the same as protection.

Question 15

Why do condo buyers get 10 days and freehold buyers get none?

Accepted Answer

Condominium purchases are governed by the Condominium Act, which grants a 10-day rescission period because buyers need time to review the disclosure statement. Freehold homes fall outside that Act, so no equivalent right exists. The difference is which statute applies, not the size of the purchase.

Question 16

Is there a cooling-off period on a freehold home in Ontario?

Accepted Answer

No. Ontario law gives no statutory cooling-off period on a freehold detached home, semi or townhome. The agreement binds you the moment it is signed and accepted. The 10-day rescission period people have heard about applies to condominium purchases, not freehold ones.

Question 17

What happens to my deposit if I can't close?

Accepted Answer

Failing to close is a breach of contract, not a cancellation. The builder can retain your deposit and may pursue you for further damages if the home resells for less. Tarion deposit protection covers builder failure, not buyer default.

Question 18

Detached, semi or townhome, what is the real difference?

Accepted Answer

Detached homes stand alone, semis share one wall, and townhomes share one or both. The practical differences are price, lot size, noise transmission and resale liquidity. In most GTA markets the step from townhome to semi costs less than the step from semi to detached.

Question 19

What are development charges and can they be capped?

Accepted Answer

Development charges are municipal fees on new housing that builders pass through to buyers at closing. Standard agreements allow uncapped increases between signing and closing. A capped levy amendment fixes your exposure at a stated figure and is the most valuable amendment to negotiate.

Question 20

Do I have to be a first-time buyer to get the Ontario HST rebate?

Accepted Answer

No. The Ontario Enhanced New Housing Rebate of up to $80,000 is not restricted to first-time buyers, any eligible individual buying a new home as a primary residence can claim it. Only the federal GST rebate of up to $50,000 has a first-time buyer test. This is the single most common misconception.

Question 21

Do I need a realtor to buy pre-construction?

Accepted Answer

You are not required to have one, but the builder budgets a co-operating commission whether or not you bring representation. If you walk in unrepresented, the builder keeps it, the price does not drop. Having your own broker costs you nothing and gives you someone whose duty is to you.

Question 22

Does using a realtor cost more when buying pre-construction?

Accepted Answer

No. The builder pays the co-operating brokerage commission out of a budget already built into the price. Your purchase price is the same whether you are represented or not. Buying unrepresented does not save you money, it just means the builder retains the commission.

Question 23

What is the federal First-Time Home Buyers' GST Rebate?

Accepted Answer

The federal First-Time Home Buyers' GST Rebate refunds the full 5% GST on a qualifying new home, up to $50,000. It covers agreements signed on or after March 20, 2025 and before 2031. The full rebate applies up to $1,000,000, phasing out to zero at $1,500,000. New construction only.

Question 24

When do grading, sodding and the driveway get done?

Accepted Answer

Usually after you move in, often a season or two later. Final grading, sod and paving depend on weather, municipal inspection and the construction stage of neighbouring lots. Builders commonly hold a deposit for this work and return it once it is completed and approved.

Question 25

How much HST rebate can I get on a new home in Ontario?

Accepted Answer

An eligible Ontario buyer can currently recover up to about $130,000 in combined federal and provincial relief on a qualifying new home. That is up to $50,000 from the federal first-time buyer GST rebate, up to $80,000 from the Ontario Enhanced New Housing Rebate, plus a provincial top-up. Most buyers qualify for less.

Question 26

How much money do I actually need to buy pre-construction?

Accepted Answer

Budget the deposit, commonly 10% to 20% over the first year or two, plus closing costs of roughly 2% to 4% of the price for land transfer tax, levies, adjustments and legal fees. On a $1.1 million freehold home, that is often $110,000 in deposits and a further $30,000 to $45,000 at closing.

Question 27

How does buying pre-construction actually work in Ontario?

Accepted Answer

You register with a broker, get early access to a release, choose a lot and model, sign a firm agreement with a bank draft, pay deposits over 12 to 24 months, make décor selections, then close two to four years later after a pre-delivery inspection. There is no cooling-off period on freehold.

Question 28

How do I claim the HST rebate on a new home?

Accepted Answer

In most cases you do not claim it directly, you sign the rebate forms at closing and assign the claim to the builder, who already credited it against your price. If the rebate was not assigned, you file with CRA yourself after closing using the new housing rebate forms.

Question 29

What is the $24,000 Ontario new housing rebate?

Accepted Answer

It is the long-standing Ontario new housing rebate: 75% of the 8% provincial portion of HST, capped at $24,000. It has no first-time buyer requirement and no temporary window. It is the fallback once the enhanced programs do not apply, including on homes above $1,850,000.

Question 30

How long after closing can I claim the HST rebate?

Accepted Answer

Generally two years from taking ownership or from the substantial completion of construction, depending on the program and your circumstances. If the rebate was assigned to your builder, the filing is theirs and the deadline is not yours to miss. Rental claims have their own timing.

Question 31

When is the Ontario HST rebate deadline?

Accepted Answer

The Ontario Enhanced New Housing Rebate requires an agreement of purchase and sale signed between April 1, 2026 and March 31, 2027. The signing date is what counts, not the closing date. The federal first-time buyer GST rebate runs longer, agreements signed before January 1, 2031.

Question 32

What happens to my HST rebate above $1.5 million?

Accepted Answer

Above $1,500,000 the federal first-time buyer GST rebate is zero. The Ontario ENHR continues as a partial rebate up to $1,850,000, above which only the long-standing $24,000 Ontario new housing rebate remains. Two different cliffs at two different prices.

Question 33

Does the home have to be my primary residence for the HST rebate?

Accepted Answer

Yes, for both enhanced rebates. The home must be the primary place of residence of you or a qualifying relation, and you must be its first occupant. Intending to live there and then renting it out instead costs you the rebate and triggers a bill from your builder at closing.

Question 34

Can I get the HST rebate if I rent the home out?

Accepted Answer

Not the owner-occupied rebates. If you rent the home out you must pay the full HST amount at closing and then claim the New Residential Rental Property rebate from CRA yourself afterward. Builders will not assign it. This changes your cash required at closing substantially.

Question 35

Is my deposit protected on a freehold pre-construction home?

Accepted Answer

Partly. Tarion protects freehold deposits up to 10% of the purchase price to a maximum of $100,000 on homes over $600,000, or $60,000 on homes at or below that. A 20% deposit on a $1.2 million home therefore leaves a substantial uninsured balance.

Question 36

How much land transfer tax will I pay on a new home in Ontario?

Accepted Answer

On a $1,100,000 home the Ontario land transfer tax is about $18,475. Inside the City of Toronto a municipal land transfer tax of roughly the same amount applies again. First-time buyers can claim up to $4,000 provincially and up to $4,475 in Toronto.

Question 37

Should a lawyer review my pre-construction agreement before I sign?

Accepted Answer

Yes, and on a freehold home it has to be before you sign rather than after, because there is no cooling-off period to fall back on. Expect a few hundred dollars for a review of an agreement that commits you to a million dollars or more with no exit.

Question 38

What are lot premiums and are they worth paying?

Accepted Answer

Lot premiums are extra charges for more desirable lots, larger, corner, walkout, ravine or park-backing, ranging from a few thousand to over $150,000. Premiums for permanent advantages like a walkout or a protected rear view tend to hold value; premiums for modest size differences often do not.

Question 39

Will my mortgage still be approved when the home closes years later?

Accepted Answer

Not guaranteed. Your mortgage is underwritten in the months before closing, on the rates, rules, income and appraised value that exist then, not when you signed. If the home appraises below your purchase price, you must cover the shortfall in cash.

Question 40

Do I need a mortgage pre-approval to buy pre-construction?

Accepted Answer

Builders usually require a mortgage pre-qualification letter within days of signing. It satisfies the builder, not you. It is not a financing condition and gives you no right to exit. Final approval happens close to your actual closing, years later.

Question 41

What is the New Residential Rental Property rebate?

Accepted Answer

The NRRP rebate is the HST rebate available to buyers who rent out a new home rather than living in it. You pay the HST at closing and claim it back from CRA yourself, with a signed one-year lease as support. Builders cannot assign it on your behalf.

Question 42

Is there interim occupancy on a freehold home?

Accepted Answer

No. Interim occupancy and occupancy fees are a condominium feature, caused by the time between a building being habitable and the corporation being registered. On a freehold home there is a single closing, you take title and possession on the same day.

Question 43

What is the Ontario Enhanced New Housing Rebate?

Accepted Answer

The Ontario Enhanced New Housing Rebate (ENHR) rebates the 8% provincial portion of HST on a new home, up to $80,000. It applies to agreements signed between April 1, 2026 and March 31, 2027, for a home you or a relation will live in. It is not limited to first-time buyers.

Question 44

What is the Ontario new home affordability payment?

Accepted Answer

It is a provincial payment of up to $50,000, equivalent to the 5% federal portion of HST, for buyers who receive the Ontario Enhanced New Housing Rebate. It is reduced by any federal GST rebate you claim, so it mainly benefits buyers who do not qualify federally. No separate application is needed.

Question 45

What is a POTL and why do I pay a fee on a freehold home?

Accepted Answer

A POTL, parcel of tied land, is a freehold home tied to a common elements condominium corporation that maintains shared private infrastructure like a laneway, visitor parking or a park block. You own your home freehold and pay a modest monthly fee for the shared parts.

Question 46

Is pre-construction better than buying resale?

Accepted Answer

Neither is universally better. Pre-construction offers a new home, warranty coverage, current rebates worth up to about $130,000, and a long runway to save, at the cost of a firm commitment with no cooling-off period and financing you cannot lock in today.

Question 47

What is a pre-delivery inspection and how should I prepare?

Accepted Answer

The PDI is your walkthrough with the builder shortly before closing, where you record the home's condition on a form that becomes the baseline for warranty claims. Anything missing or damaged must be written on the form. Allow two to three hours and do not rush it.

Question 48

What does "price net of HST rebate" mean?

Accepted Answer

It means the advertised price already has the HST rebate subtracted from it, on the assumption that you qualify. You are seeing the discounted number. If you do not qualify, the rebate amount gets added back and billed to you at closing, so the real price is higher than advertised.

Question 49

Will the park, school and trails on the builder's site plan actually get built?

Accepted Answer

Not necessarily. A community site plan shows a draft plan of subdivision, and in Ontario the conditions of draft approval can be changed right up until final approval and registration. A park block is usually secured through parkland dedication under the Planning Act, but a school block only becomes a school if the school board decides to acquire and build on it, which is not the builder's decision to make.

Question 50

My spouse owned a home before. Am I still a first-time buyer?

Accepted Answer

Possibly not. For the federal GST rebate, you are disqualified if you lived in a home your spouse or common-law partner owned during the current calendar year or the four preceding years. Only one spouse needs to qualify, but if you occupied their home, neither of you does. This trap catches many buyers.

Question 51

What does the Tarion warranty cover on a new home?

Accepted Answer

Tarion provides a statutory warranty on new Ontario homes: one year for defects in work and materials, two years for major systems and water penetration, and seven years for major structural defects. It also covers deposit protection and delayed closing compensation, each subject to limits.

Question 52

What is a typical deposit structure for pre-construction in Ontario?

Accepted Answer

New low-rise in the GTA typically requires 10% to 20% of the price, paid in instalments over 12 to 24 months. A common structure is a bank draft on signing, then further amounts at 30, 90, 180 and 365 days. Freehold deposits are often lower than condo deposits.

Question 53

What is a freehold townhome?

Accepted Answer

A freehold townhome is an attached house where you own the land and the building outright, with no condominium corporation and no monthly maintenance fee. You are responsible for your own roof, windows and exterior, unlike a condo townhome, where the corporation handles them.

Question 54

What is in a pre-construction agreement of purchase and sale?

Accepted Answer

A builder's agreement typically runs 40 to 80 pages: the price and deposit schedule, closing date provisions, HST rebate assignment, closing adjustments and levies, the builder's rights to substitute and extend, and the specifications. It is drafted by the builder's lawyers, for the builder.

Question 55

What is included in the base price of a new home?

Accepted Answer

The specifications schedule attached to your agreement defines what you get, not the model home. Base pricing typically excludes appliances, window coverings, central air in some cases, finished basements, decks, fences and landscaping beyond basic sod.

Question 56

What is platinum or VIP access in pre-construction?

Accepted Answer

Platinum access is the earliest sales allocation a builder releases, distributed through selected brokerages before public opening. It typically means an earlier choice of lots and models, the opening price list, and sometimes better incentives or deposit terms than the public release.

Everything buyers ask about Ontario pre-construction

HST & GST rebates

Contracts & cooling-off

Deposits & financing

Closing & occupancy

Buying process

Low-rise specifics