How to Buy a Pre-Construction Condo in Ontario (2026 Guide)

Buying a pre-construction condo in Ontario runs on a fixed sequence. You register with the builder or a sales rep, receive a floor plan and price list, sign an Agreement of Purchase and Sale (APS) with a Tarion Addendum, use the mandatory ten-day cooling-off period to have a lawyer review the deal, pay the deposit schedule over time, wait for the builder to finish construction, take interim occupancy, and then close on title once the condominium corporation registers. From reservation to keys typically takes 24 to 60 months. Owner-occupiers, investors, and end-users follow the same legal path but should approach the deposit, HST, and lender approvals differently.

Key takeaways

Ontario law gives you a ten-day cooling-off period after signing a pre-construction condo APS. During this window your lawyer can propose amendments, and you can walk away without penalty.
The deposit is usually 15% to 20% of the purchase price paid in scheduled instalments over 12 to 24 months. All deposits sit in a builder trust account under the Condominium Act, 1998 and are further protected up to prescribed limits by Tarion.
Pre-construction closes twice: interim occupancy first (monthly fee only), then final closing when title transfers and the mortgage funds.
The APS almost always contains uncapped adjustments (development charges, education levies, hookups, Tarion) that the buyer will owe on final closing. Understanding these before you sign avoids most closing-day disputes.
Mortgage approval at signing is preliminary. The lender re-underwrites at closing, sometimes two to four years later, using the qualifying rate and appraisal in effect at that time.

Step 1: Register for platinum or public access
Step 2: Choose the suite and sign the APS
Step 3: Use the ten-day cooling-off period
Step 4: Pay the deposit schedule
Step 5: Wait through construction and communicate with the builder
Step 6: Complete the Pre-Delivery Inspection and take interim occupancy
Step 7: Final closing and title transfer
Investor path vs end-user path
Common risks and misunderstandings
Pre-construction buyer checklist
Frequently asked questions

Step 1: Register for platinum or public access

Most Toronto and GTA developers sell in tiers. The earliest tier is "platinum," which is limited to a small group of realtor networks the builder trusts to close early inventory. Below platinum comes VIP, then friends-and-family, then public launch, then general availability. The earlier the tier, the lower the price relative to public launch and the wider the selection of suites and floor plans.

Registering with the builder's website will put you on the public launch mailing list. Registering with a realtor who is invited to the platinum group typically means earlier price and floor-plan access, incentive stacking (parking credit, decor voucher, capped levies), and the ability to reserve a specific suite instead of picking from what remains at public launch.

Registration does not create a purchase obligation. You are simply telling the builder that you would like to be shown pricing and to reserve a spot in the sales queue.

Registering across several developers is normal. So is comparing several projects side by side. See the Toronto pre-construction condo listings for currently registering and currently selling projects across the GTA.

Step 2: Choose the suite and sign the APS

Once the sales appointment happens, the builder will show you:

A price list keyed to floor number, exposure, and suite type.
A features and finishes brochure.
A deposit schedule.
An estimated occupancy date.
A disclosure statement (required under the Condominium Act, 1998, section 72 for condominium corporations).
A blank Agreement of Purchase and Sale with a Tarion Statement of Critical Dates Addendum.

You choose a suite, complete the worksheet, and sign the APS along with a cheque or wire for the initial deposit (typically 5% on signing). The APS is binding at this point subject to the ten-day cooling-off period.

Non-negotiable to check before signing:

Suite number, floor, and exposure match the worksheet.
The purchase price matches the price list you were quoted.
The deposit schedule lists specific dates or triggers you can plan around.
The Tarion Addendum Statement of Critical Dates is complete (see the pre-construction delays and Tarion rights guide).
Adjustment caps on development charges, education levies, and Tarion enrolment are stated in dollars, not "at builder's cost."
Assignment rights, if you might want to assign, are clearly permitted and the consent fee is stated.

Step 3: Use the ten-day cooling-off period

The Condominium Act, 1998 section 73 gives every purchaser of a new residential condominium unit a ten-day rescission period after receiving both the APS and the disclosure statement. During those ten days:

You can rescind the deal in writing for any reason and receive back all deposits, without penalty.
Your lawyer can raise substantive concerns with the builder's lawyer. Most builders will accept minor amendments if requested during this window (for example, raising a low DC cap, clarifying an ambiguous parking or locker clause, adjusting an occupancy-date estimate for a specific reason).
Your lawyer can confirm that the disclosure statement is complete and that the Tarion Addendum is filled out correctly.

For the mechanics, see the Ontario condo cooling-off period guide.

The lawyer should be a Toronto-area real estate lawyer who reviews pre-construction agreements regularly, not the same lawyer who wrote your will or handled your resale purchase last year. Pre-construction agreements run 60 to 200 pages and use language that has developed over decades in this specific market.

[TAL'S PRACTICAL NOTE: Add a two-to-four-sentence example of a specific clause you have negotiated during a cooling-off period on a Toronto pre-construction deal, and what the builder agreed to.]

Step 4: Pay the deposit schedule

Deposits on a Toronto pre-construction condo typically total 15% to 20% of the purchase price for Canadian residents. Non-residents commonly pay 35%. A representative Canadian-resident schedule looks like:

5% on signing.
5% in 30 days.
5% in 180 days.
5% in 365 days.
Optional additional 5% at interim occupancy.

Each instalment is paid by cheque or wire to the builder's real estate lawyer, who holds the funds in trust under section 81 of the Condominium Act, 1998. The Act requires deposit funds for residential condominium units to be either held in a trust account or covered by an approved security (letter of credit, bond, or Tarion excess-deposit insurance).

Tarion provides additional deposit protection on Ontario new-condominium purchases up to a prescribed limit. Confirm the current maximum on the Tarion website. Deposits above the Tarion limit should be verified with your lawyer as either being held in trust or covered by an excess-deposit insurance certificate provided by the builder.

Deposit financing is possible but expensive. Some buyers use a home-equity line of credit against another property to fund the deposit schedule. This is a personal-finance decision and should be discussed with a mortgage broker.

See the pre-construction condo deposit structures guide for how deposits vary between developers and how deposit protection works.

Step 5: Wait through construction and communicate with the builder

The construction phase takes anywhere from 18 to 48 months from the first shovel. Buyers should:

Read every notice from the builder's customer-service portal, especially Tarion Statement of Critical Dates updates. Occupancy dates can move.
Attend colour and finish appointments on schedule. Missing an appointment usually forfeits the ability to select and leaves you with builder-default finishes.
Update the builder if you change your name, address, or marital status.
Communicate any assignment intention early. See the Ontario assignment sale guide for the process.
Get a mortgage pre-approval that is renewable, and start monitoring rates in the 12 months before the estimated final closing.

Extensions are common. Under the Tarion Addendum, the builder may extend both the tentative occupancy date and the outside occupancy date on written notice under the Addendum rules. Not every extension entitles the buyer to compensation. The specific compensation and rescission rights turn on which milestone was missed and how much notice was given.

Step 6: Complete the Pre-Delivery Inspection and take interim occupancy

Approximately three to six weeks before your interim occupancy date, the builder will schedule a Pre-Delivery Inspection (PDI). The PDI is your opportunity to walk the suite, list any deficiencies, and put them on the Tarion Certificate of Completion and Possession. Tarion recommends bringing a checklist, testing all appliances and outlets, and taking photos.

Once the building has interim occupancy status from the City of Toronto, you take possession of the unit and start paying the monthly occupancy fee. Title has not transferred yet. See the interim occupancy fees in Ontario guide for the fee mechanics.

During interim occupancy:

Do not renovate or make structural changes. Warranty coverage applies to the condition at possession.
Report any 30-day and one-year warranty items to Tarion within the statutory windows.
Continue to plan for final closing costs (see the pre-construction condo closing costs guide).

Step 7: Final closing and title transfer

Final closing occurs when the condominium corporation registers on title with the Land Registry Office. This can be one month to over a year after interim occupancy in a large or phased project.

At final closing:

Your lender advances the mortgage.
You pay Ontario and Toronto Municipal Land Transfer Tax through your lawyer.
You pay HST if you are an investor buyer who did not qualify to assign the New Housing Rebate.
You pay builder adjustments (development charges, education levies, Tarion, hookups, reserve-fund contribution).
You sign the transfer and the mortgage documents.
The lawyer registers the transfer and the mortgage.
The interim occupancy period ends and your monthly obligation switches to mortgage payments plus common expenses plus realty tax.

If the mortgage rate at final closing is materially different from the rate you were pre-approved at, the payment will be different. Some buyers renegotiate with the same lender; others shop the mortgage in the 120 days before closing.

[TAL'S PRACTICAL NOTE: Add a two-to-four-sentence observation on what buyers usually forget to verify at final closing that later becomes a title or warranty issue.]

Investor path vs end-user path

Both paths use the same seven-step legal sequence. The critical differences:

| Consideration | End-user (owner-occupier) | Investor (rental) | | --- | --- | --- | | HST at closing | Included in price via New Housing Rebate assignment | Paid in full at closing; NRRP rebate claimed after via CRA Form GST524 | | Land transfer tax rebate (FTHB) | Eligible if first-time buyer | Not eligible | | Occupancy fee treatment | Living cost | Investment carrying cost, not tax-deductible against principal residence exemption | | Mortgage approval | Personal insurable or conventional | Conventional; some lenders decline pre-construction rental purchases | | Assignment considerations | Usually intending to close | May consider assignment closer to occupancy | | Rental-market planning | Not required | Required; assess vacancy, comparable rents, and cash-flow |

For a full comparison, see the pre-construction vs resale condos in Toronto guide.

Common risks and misunderstandings

"The sales rep said the price is all-in." Verify in writing. Adjustments are usually written into the standard APS clauses and are not part of the "sticker price."
"My existing lawyer can review it." Only if that lawyer does Ontario pre-construction work. Non-specialists routinely miss cost caps, occupancy-date clauses, and assignment rules.
"I'll get a mortgage closer to closing." True, but the lender will apply the qualifying rate and appraisal in effect at closing, not at signing. A market downturn or rate increase two years later can meaningfully change the mortgage math.
"The builder can't delay occupancy." They can, subject to the Tarion Addendum notice rules. Delayed-occupancy compensation is prescribed and may be lower than actual out-of-pocket costs from the delay.
"I can cancel any time before closing." Only within the ten-day cooling-off period, or if the builder triggers a Tarion rescission right under the Addendum, or if the builder cancels the project.
"HST is only on investors." HST applies to every new condominium purchase. Owner-occupiers rarely notice it because the rebate is assigned to the builder inside the sticker price.

Pre-construction buyer checklist

[ ] Registered with several relevant developers and one platinum-access realtor.
[ ] Reviewed the deposit schedule against your savings and financing plan.
[ ] Confirmed the Tarion Statement of Critical Dates is complete on the APS.
[ ] Identified the specific dollar caps on development charges, education levies, and utility hookups.
[ ] Booked a real estate lawyer for the ten-day cooling-off period before signing.
[ ] Obtained a mortgage pre-approval and understand that it is preliminary.
[ ] Reserved cash for legal fees, HST (if investor), reserve-fund contribution, and moving costs.
[ ] Diarized the deposit dates and colour appointments.
[ ] Confirmed assignment rights and consent fees in the APS.
[ ] Confirmed how the builder will notify you of critical date changes and how you must respond.

Frequently asked questions

How long does a pre-construction condo purchase take from start to finish?

Usually 24 to 60 months from signing to final closing, sometimes longer for larger or phased projects. Interim occupancy begins earlier than final closing, so you may move in months to over a year before title transfers.

How much deposit does a Canadian resident need for a Toronto pre-construction condo?

Most builders require 15% to 20% total, paid in scheduled instalments over 12 to 24 months. Non-residents typically pay 35%.

Are deposits safe if the builder cancels the project?

Deposits are held in trust under the Condominium Act, 1998 and are covered up to Tarion's prescribed limits. Amounts above the Tarion limit should be verified as being held in trust or covered by an excess-deposit insurance certificate.

Do I get a mortgage now or at closing?

A pre-approval is useful for planning. Final approval and funding happen shortly before closing, using the rate and appraisal in effect at that time.

Can I walk away after signing the APS?

Without penalty only during the ten-day cooling-off period. After that, cancellation is limited to specific rights in the Tarion Addendum or in your APS (for example, a mortgage-approval condition, though most builder-form APSs do not include one).

Do I have to use the builder's lawyer?

No. You should retain your own real estate lawyer to review the APS and to close for you. The builder has its own counsel who represents the builder's interests, not yours.

What is the difference between interim occupancy and final closing?

Interim occupancy is when you move in but title has not transferred. You pay a monthly occupancy fee to the builder. Final closing is when the condominium corporation registers, title transfers, and your mortgage funds.

Can I change my mind about which suite after signing?

Some builders will allow a suite swap for a fee if the new suite is available. Most will not, once the APS is signed and the cooling-off period has ended.

Conclusion

Ontario pre-construction condominium purchases follow the same seven-step legal process for every buyer. The differences are in the details of the APS and in the buyer's financial plan. The most valuable steps a buyer can take are choosing the right lawyer for the ten-day cooling-off period, reading the deposit schedule and the caps on adjustments before signing, and treating any mortgage pre-approval as preliminary until the loan actually funds at closing.

Call to action

Ready to compare Toronto pre-construction projects side by side? Browse the Toronto pre-construction condo listings, review developer track records, or contact the CondoWizard team to be introduced to a lawyer who reviews Ontario pre-construction agreements.

Sources and last reviewed

Government of Ontario. Condominium Act, 1998. https://www.ontario.ca/laws/statute/98c19
Tarion. Statement of Critical Dates and deposit protection. https://www.tarion.com
Condominium Authority of Ontario. Buyer protections and disclosure. https://www.condoauthorityontario.ca
Canada Revenue Agency. GST/HST New Housing Rebate. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028.html
Home Construction Regulatory Authority. Builder and vendor licensing. https://www.hcraontario.ca

Last reviewed: 2026-07-25. Rules and project terms can change. Buyers should verify current information with the appropriate professional and official authority.

How Buying a Pre-Construction Condo Works in Ontario