Gallery
Caledon · Selling · Townhouse
RealtyGo Demo
Salesperson
XYZ REALTY INC.
123 ABC st
I am real estate agent with prompt
Tarion is Ontario's new home warranty program. Every new home from a registered builder comes with warranty coverage: deposit protection if the builder can't close, one-year coverage for defects in work and materials, two-year coverage for things like plumbing, electrical, and water penetration, and seven-year coverage for major structural defects. Coverage starts at closing and stays with the home even if you sell.
It depends on the price and type of home. For a new freehold home priced at $600,000 or less, up to $60,000 of your deposit is covered — so a $60,000 deposit on a $550,000 home is fully protected. Above $600,000, coverage is 10% of the purchase price to a maximum of $100,000. Condos work differently, with two layers: the Condominium Act requires the builder to hold your deposit in a trust account, and if for any reason it wasn't placed in trust, Tarion adds up to $20,000 in protection on top. One recent change worth knowing: as of April 1, 2026, freehold buyers must register their purchase with Tarion within 45 days of signing to qualify for maximum deposit coverage.
The HCRA (Home Construction Regulatory Authority) is the Ontario regulator that licenses everyone who builds or sells new homes. A builder must be HCRA-licensed and the project enrolled with Tarion before they can legally sell to you. You can look up any builder's licence, history, and past projects for free in the Ontario Builder Directory on the HCRA website.
Search the Ontario Builder Directory (run by the HCRA) for the builder's name. Their profile shows licence status, years active, homes built, and any convictions or conditions. It takes two minutes and I recommend it before signing any pre-construction agreement.
It's the period when your unit is ready to live in but the building isn't legally registered yet, so you can't get a mortgage or take title. You pay the builder a monthly occupancy fee (roughly rent-like: interest on the unpaid balance, estimated taxes, and maintenance) until final closing. Interim occupancy can last several months.
Beyond the purchase price, budget for development charges and levies (often capped in your agreement — ask), Tarion enrolment fee, utility hookups, legal fees, and land transfer tax (Toronto adds a second municipal tax). HST is usually included in the price for personal-use buyers; investors may pay it up front and claim the rental rebate.
For new condos in Ontario, you get a 10-day cooling-off period to cancel for any reason with a full deposit refund. Freehold homes don't get this period. After the cooling-off ends, the agreement is binding — this is why a lawyer review during those 10 days is essential.
Delays are common, and your agreement sets out permitted extensions with required notice. If the builder misses deadlines beyond those limits, Tarion's delayed-closing coverage may entitle you to compensation. If a project is cancelled outright, your deposit may be returned with interest, subject to Tarion's deposit protection rules and the terms of your agreement.
Possibly — two temporary programs are in place. If you sign a purchase agreement between April 1, 2026 and March 31, 2027, you may qualify for a rebate of the full 13% HST on a new home valued up to $1 million — up to $130,000 in combined provincial and federal relief — with the maximum held at $130,000 for homes up to $1.5 million and reduced amounts up to $1.85 million. Eligibility rules apply, so confirm what you qualify for with your lawyer or accountant before counting on the rebate.