Buying Pre-Construction in Ontario: A Buyer's Guide

Buying a home before it is built can be an excellent way to secure a new home at today's pricing, choose your layout early, and move into a brand-new property with a builder warranty. It also works differently from buying a resale home. This guide walks through how pre-construction purchases work in Ontario, what to expect at each stage, and what to ask before you sign.

What Does "Pre-Construction" Mean?

A pre-construction home is one you purchase from a builder before construction is complete, often before it has started. You buy based on floor plans, renderings, and a specifications list rather than walking through a finished home. Your purchase is made under an Agreement of Purchase and Sale with the builder, and you close once the home is built and ready.

Pre-construction homes can be condominiums, freehold townhomes, or detached homes. The type of home affects some of the details below, so confirm the specifics for the project you are considering.

The Pre-Construction Buying Process, Step by Step

1. Register your interest

Most projects start with a registration period. Registering gets you project updates, floor plans, pricing, and often early access to the best available homes before general release.

2. Review pricing, floor plans, and the disclosure documents

Compare the available layouts, the price list, and what is included in the base price. Ask for the full list of finishes and features, and make sure you understand which upgrades cost extra.

3. Have a real estate lawyer review your agreement

This is the most important step. A lawyer experienced in new-home purchases should review the Agreement of Purchase and Sale and any disclosure statement before you sign. Pre-construction agreements are long and builder-drafted, and details such as closing dates, adjustments, and termination rights matter.

4. Sign and pay your deposits

Deposits are normally paid in instalments rather than all at once. A common structure is an initial deposit on signing followed by further instalments at set dates. The exact schedule varies by project, so review the deposit structure in your agreement.

5. Choose finishes and upgrades

After signing, buyers are typically invited to a finish selection appointment. Upgrades are usually priced individually, so it helps to set an upgrade budget in advance.

6. Construction, then pre-delivery inspection

As the home nears completion, you will be invited to a Pre-Delivery Inspection (PDI) with the builder. This is your chance to document any deficiencies on a list for the builder to correct.

7. Closing and moving in

On closing, your lawyer registers the transaction, you pay the remaining balance and closing costs, and you receive the keys.

Understanding Deposits

Deposits are part of the purchase price, not an extra cost, and they are generally held in trust. Ontario's new-home warranty provider, Tarion, offers deposit protection on eligible new-home purchases up to limits it sets.

Before signing, ask:

• How much is due on signing, and when are the later instalments due?

• Who holds the deposits, and in what type of account?

• What happens to the deposits if the project does not proceed?

The Tarion Warranty

New homes built by registered builders in Ontario are covered by a statutory warranty administered by Tarion. In general, the coverage is staged: a shorter period for workmanship and materials, a longer period for certain building envelope and electrical, plumbing, and heating issues, and the longest period for major structural defects.

One-Year Warranty (begins on your possession date):

• Covers defects in work and materials

• Ensures the home is fit for habitation

• Covers unauthorized substitutions of building materials

• Covers violations of the Ontario Building Code

Two-Year Warranty (begins on your possession date):

• Covers water penetration through the basement or foundation walls

• Covers defects in the electrical, plumbing, and heating delivery systems

• Covers defects in the exterior cladding (such as detachment, displacement, or deterioration)

• Covers health and safety violations of the Ontario Building Code

Seven-Year Warranty (begins on your possession date, covering years 3 through 7):

• Covers major structural defects, which include load-bearing failures, severe foundation movement, major basement cracks, or structural load resistance impairments that render the home unsafe or unfit for residential use

General Exclusions

• Normal wear and tear, or normal shrinkage (such as minor drywall cracking from settling)

• Damage caused by homeowner neglect, lack of maintenance, or improper alterations

• Secondary damage or dampness/condensation resulting from improper homeowner ventilation

• Acts of God, severe weather, or natural disasters

• Appliances (unless specifically warranted by the builder) and normal landscaping

The warranty is a major advantage of buying new, and it is a good reason to confirm that any builder you buy from is registered with Tarion. You can check a builder's record through Tarion's public Ontario Builder Directory.

Closing Costs to Plan For

Pre-construction closing costs are different from resale costs. Plan for the following, and confirm each with your lawyer:

• Legal fees and disbursements

• HST, which applies to new homes. The purchase price may or may not be quoted "plus HST," so check. Rebates may be available depending on your circumstances and the home's price.

• Land transfer tax, which applies to Ontario purchases

• Tarion enrolment fee, which is often passed on to the buyer

• Utility connection and hook-up fees

• Adjustments, such as property tax and other prepaid items

• Development charges, which may already be included in the price or charged separately.

Closing Dates and Possible Delays

Pre-construction closing dates are an estimate, and construction can run late. Ontario's rules and the Tarion framework set out how a builder must give notice of a delayed closing and, in some cases, what compensation may be available to buyers. Read the closing date and delay provisions in your agreement closely, and ask your lawyer to explain them.

Pre-Construction vs. Resale: Quick Comparison

Questions to Ask Before You Buy

1. What is the estimated occupancy or closing date, and what happens if it is delayed?

2. What is included in the price, and what are the common additional costs?

3. How are deposits structured and protected?

4. Is the builder registered with Tarion, and what is their track record?

5. Are there restrictions on assigning the agreement or renting the home?

6. What do the maintenance fees or monthly costs look like, if applicable?

Considering The Residences at Bayview?

The Residence at Bayview offers pre-construction beachfront townhomes in Wasaga Beach by Skycon Developments. 22 boutique townhomes, ranging in size from 2,020 to 2,374 square feet, starting at just $973,000 (not including HST), with immediate occupancy.

Next steps: View floor plans · See the price list · Register your interest · Schedule a viewing

This guide is general information only and is not legal or financial advice. Speak with a licensed Ontario real estate lawyer before signing any agreement.

Contact

Reach out to schedule your viewing today

info@bayviewwasaga.com

905-660-7700

© 2026. All rights reserved.

The Residences at Bayview