Ontario pre-construction buyer guide 2026: rules, rebates and red flags

At a glance: before you sign for a new condo or house, check the builder on the HCRA directory, know your deposit protection, use the cooling-off period, read the Statement of Critical Dates, and confirm which HST rebates you qualify for. The rules below are from HCRA, Tarion, the Condo Authority and the CRA.

Checked on 3 October 2026.

1. Check the builder before anything else

Search the builder and vendor on the HCRA Ontario Builder Directory. It shows licence status, homes built, regulatory actions, convictions, claims paid and past cancelled condo projects. A builder with cancelled projects or conciliations is a reason to slow down.

2. How much of your deposit is protected

New for freeholds: buyers who register with Tarion within 45 days of signing get the full coverage; this change takes effect 1 Jan 2027. Tarion

Anything you pay above the protected amount is at risk if the builder fails. Structure deposits accordingly.

3. The cooling-off period

• New condos: 10 calendar days to cancel with a full refund, starting once you have the signed agreement, the disclosure statement and the Condo Buyers’ Guide. HCRA
• New freeholds: a 10-day cooling-off period applies to agreements signed on or after 1 Jan 2027. Agreements signed before then generally have none. HCRA

Use the 10 days to have a real estate lawyer review the agreement, especially the price adjustments in Schedule B.

4. Delays, dates and compensation

• The Statement of Critical Dates (first page of the Tarion Addendum) sets the firm and outside dates. The Addendum overrides conflicting clauses.
• If a firm date is missed, compensation is up to $7,500: $150 a day for living costs, plus receipted moving and storage. Less than 10 days’ notice of a delay pays $1,500.
• If the home is not ready by the outside date, you get a 30-day window to cancel with a full refund plus interest.

5. Condo interim occupancy fees

If you move in before the condo is registered, you pay an interim occupancy fee: interest on the unpaid balance, estimated property tax and common expenses. It does not reduce your purchase price. Condo Authority of Ontario

6. Development charges and “capped” levies

Only items listed in Schedule B can be added to your price on closing. In plain terms, a levy is “capped” only if its dollar amount is fixed in Schedule B Part I of your agreement. Have your lawyer confirm before you sign. HCRA Addendum (condo)

7. HST rebates on new homes in 2026

Confirm your eligibility and the exact phase-outs with CRA and your lawyer before relying on any amount. CRA: First-time home buyers’ GST/HST rebate · CRA: Ontario enhanced new housing rebate

8. Assignments and the 365-day rule

• Since 7 May 2022, all assignment sales of new homes are subject to GST/HST. CRA GI-120
• Selling a home or an assignment you held for under 365 days is generally taxed as business income, with no principal residence exemption, unless a life event applies. CRA flipping rule
• Builders can require consent and charge an assignment fee; it is set by your agreement.

Where the approved projects are

See the GTA developments tracker for permitted and approved projects, and each city guide for local detail.

Read next: GTA developments 2026–2028: what’s approved and being built

General information only, not legal or tax advice. Have a real estate lawyer review any agreement of purchase and sale, and confirm rebates with the CRA. Inderpal Sidhu, Salesperson · HomeLife Silvercity Realty Inc., Brokerage.

Speak with Inderpal Sidhu
Direct: (647) 338-6875 · Office: (647) 931-5918
WhatsApp · Talk to me first
Inderpal Sidhu, Salesperson · HomeLife Silvercity Realty Inc., Brokerage. Not intended to solicit properties or clients already under contract with another brokerage.