Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Before buying pre-construction in 2027, ask: is the builder licensed by HCRA, how is my deposit protected (Tarion covers up to $20,000 per condo), what are the critical and outside dates, what will closing really cost, and how can I get out. New condo buyers in Ontario can cancel within 10 days under the Condominium Act.
This is for anyone in the GTA thinking about buying a pre-construction condo or new house in 2027. You get the five questions I would ask before signing, what Ontario’s rules actually promise on each one, and how resale prices since 2024 change the risk.
Is pre-construction safe in Ontario in 2027?
It can be, but only if you understand what is protected and what is not. Ontario has real safeguards. Builders and sellers of new homes must be licensed. Tarion protects deposits up to set limits and pays fixed compensation for some delays. New condo buyers get a 10-day window to cancel after signing.
Those rules do not protect you from everything. They do not stop prices from falling before you close. They do not cap every closing cost. They do not guarantee you can sell your contract if your plans change. Some projects have been cancelled outright, which I cover in what a cancelled pre-construction project means for your deposit.
So the useful question is not “is it safe” in general. It is whether this builder, this contract and this price are safe for you. The five questions below get you there.
How have resale condo prices changed since 2024?
This matters because a pre-construction unit is priced today and valued again at closing, often years later. Here is what happened to resale condo apartments in the last two years.
| Condo apartment, Jan–Oct | 2024 median | 2025 median | 2026 median | Change since 2024 |
|---|---|---|---|---|
| Toronto C01 (downtown) | $680,000 | $642,650 | $600,000 | −11.8% |
| Toronto C08 (downtown east) | $657,750 | $610,000 | $565,000 | −14.1% |
| Mississauga | $583,000 | $535,000 | $485,000 | −16.8% |
| Vaughan | $635,000 | $595,000 | $530,000 | −16.5% |
| Richmond Hill | $637,500 | $580,000 | $529,250 | −17.0% |
| Markham | $700,000 | $643,000 | $558,000 | −20.3% |
| Brampton | $540,000 | $475,000 | $415,000 | −23.1% |
Source: TRREB MLS data via REALM, January–October of 2024, 2025 and 2026. Median sold prices for resale condo apartments by municipality or Toronto district (C01 and C08). Not neighbourhood figures and not forecasts.
A buyer who signed in 2024 at a price close to resale values could now face a gap at closing. Nobody knows where prices will be in 2029 or 2030, when units sold in 2027 may close. That uncertainty is the reason to ask hard questions now.
1. Is the builder licensed, and what is its track record?
The Home Construction Regulatory Authority (HCRA) licenses new home builders and sellers in Ontario. HCRA says all of them must be licensed, and that a builder not listed in its Ontario Builder Directory is likely not operating legally. Do not buy from an unlicensed builder.
The Directory shows a builder’s licensing status, years of activity and number of homes built. It also lists regulatory actions by HCRA, including conduct concerns, charges and convictions. You can filter by insolvency status and search by the name of a company director or officer, which helps if the vendor on your agreement is a company name you do not recognize.
Questions to ask the sales team:
- What is the exact name of the vendor on the agreement, and is it in the Directory?
- Which projects have you finished in the GTA, and did they close near their first tentative date?
- Has this project got its zoning approval and building permit, and has construction started?
I walk through the search screen by screen in how to check a builder in the HCRA directory.
2. How is my deposit protected?
For a condo, Ontario’s Condominium Act requires the builder to have your deposit money held in trust by a prescribed trustee or the builder’s lawyer. Tarion adds deposit protection of up to $20,000 per condo unit if the builder does not return your deposit after the agreement ends. For freehold homes, Tarion’s limits depend on the price.
| Type of purchase | Tarion deposit protection |
|---|---|
| Condominium unit | Up to $20,000; deposits must also be held in trust under the Condominium Act |
| Freehold, price $600,000 or less (signed on or after 1 Jan 2018) | Up to $60,000 |
| Freehold, price over $600,000 (signed on or after 1 Jan 2018) | 10% of the price, to a maximum of $100,000 |
| Money paid before you sign a purchase agreement | Not covered |
Source: Tarion, deposit protection pages (accessed November 2026). Coverage applies in set situations, such as builder bankruptcy, a fundamental breach of the agreement, or a legal right to treat the agreement as ended.
GTA condo deposits are often well above $20,000, so ask who holds the money in trust and how any amount above Tarion’s limit is protected. Get the answer in writing, and have your lawyer confirm it during the cooling-off period.
Condo Valuation
What’s your condo
worth today?
Three quick steps. Condos don’t price like houses — your floor, your view, and whether you own parking move the number more than anything else. This weighs all of them.
Reading recent condo sales…
Estimated market value
—
$0–$0
Most likely $0 · about $0 per square foot
What moved the number
Starting from what comparable units in your area sell for, here’s what your specifics added or subtracted.
Market context
—
—
Two units, same floor plan,
$90,000 apart.
That happens constantly in condos — one has the parking, the right exposure, or a board that keeps the reserve fund healthy. A model can’t see your status certificate. I can.
3. What are the critical dates, and what if the project is delayed?
A new home agreement in Ontario comes with the Tarion Addendum. Its first page is the Statement of Critical Dates, signed by you and the builder. Read it before anything else.
For condos, Tarion describes these key dates:
- First Tentative Occupancy Date: when the builder expects the unit to be ready.
- Final Tentative Occupancy Date: must be set within 30 days of roof completion.
- Firm Occupancy Date: the date you can rely on. Each extension of a tentative date needs 90 days’ notice.
- Outside Occupancy Date: the latest date the builder agreed to give you the unit. If it is not ready by then, you have 30 days to end the agreement and get a full refund of what you paid, plus interest.
If a firm date is missed, Tarion’s compensation is a fixed $150 a day for living expenses, with total delayed occupancy compensation up to $7,500. If the builder does not give 10 days’ notice of a delay, you get $1,500. Freehold buyers have similar terms, with an Outside Closing Date of 365 days after the earlier of the Second Tentative Closing Date and the Firm Closing Date.
Ask the builder: what are the first tentative and outside dates, and how far apart are they? A wide gap tells you how long you could be waiting.
4. What will closing really cost me?
The price on the agreement is not the total. Before you sign, ask for every cost you will pay between now and the final closing.
Interim occupancy for condos
Many condo buyers move in before the building is registered and they get title. The Condominium Act caps the monthly occupancy fee at the total of interest on your unpaid balance at the prescribed rate, an estimate of municipal taxes, and the projected common expenses. None of that pays down a mortgage. My guide to interim occupancy fees shows how it adds up.
Closing adjustments
Ask for a written list of every adjustment in the agreement, and whether charges such as development charges and levies are capped. Uncapped charges are a common surprise at final closing.
HST and rebates
The Canada Revenue Agency says the federal first-time home buyers’ rebate covers 100% of the GST, or the federal part of the HST, on new homes up to $1 million, with partial relief up to $1.5 million. It applies to agreements signed on or after 20 March 2025 and before 2031, up to $50,000, for buyers who meet the first-time and first-occupant rules. CRA’s page, updated June 2026, also lists an Ontario first-time home buyers’ rebate of up to $80,000 of the provincial part of the HST that follows the federal conditions. Have your lawyer confirm what applies to your agreement date and price.
The appraisal gap
Your lender bases the mortgage on the home’s value at closing, not on the price you agreed years earlier. If a $650,000 unit appraises at $600,000, you cover the $50,000 difference in cash on top of your down payment. With resale condo medians down 12% to 23% since 2024 in the areas above, plan for this possibility.
5. Can I get out, or assign, if my plans change?
For a new condo, yes, briefly. Under section 73 of the Condominium Act, you can cancel by written notice that the builder or its lawyer receives within 10 days of the latest of three dates: when you got the disclosure statement, the condominium guide, or a copy of the agreement signed by both sides. The builder must refund your money promptly, without penalty, with interest. If the builder later makes a material change to the disclosure statement, you get another 10 days from receiving the revised statement to cancel.
After that, your main exit is an assignment, where you sell your contract to another buyer before closing. Ask whether the agreement allows it, what the builder charges, and whether there are limits on advertising it. The tax side is complicated, which I explain in my assignment sales guide.
If you cannot close and cannot assign, you risk losing your deposit and being pursued for the builder’s losses. Your lawyer can explain what your agreement says.
Pre-construction can still make sense in 2027 for an end user who plans to live in the home for years and can carry the risk of a lower value at closing. It makes much less sense if you are counting on a quick profit or on assigning the unit. Before I let a client sign, I compare the price per square foot with similar resale units nearby. If the new unit costs a lot more, I want a clear reason, such as a better layout or location, not just new finishes. My fuller view is in whether a pre-construction condo is a good investment in 2027.
Do not let a sales centre rush you with a “today only” price. Sign, then use the 10-day cooling-off period to have a real estate lawyer review the full agreement, the disclosure statement and the Tarion Addendum. If anything is unclear, cancel in writing before day 10.
What to do next
- Look up the vendor named on the agreement in HCRA’s Ontario Builder Directory.
- Ask in writing who holds your deposit in trust and how amounts above $20,000 are protected.
- Read the Statement of Critical Dates and note the outside occupancy or closing date.
- Get a full list of closing adjustments and model a lower appraisal with the condo value tool on this page.
- Book your lawyer before you sign so the 10-day review actually happens.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Is pre-construction safe in Ontario?
It can be, if you check the builder and the contract. Ontario requires new home builders and sellers to be licensed by HCRA, Tarion protects condo deposits up to $20,000 and pays set delay compensation, and condo buyers get a 10-day cooling-off period. But in 2026 resale condo medians were 12% to 23% below 2024 in many GTA areas, so value at closing is a real risk.
What questions should I ask a builder before buying pre-construction?
Ask five things: is the vendor licensed and listed in HCRA’s Ontario Builder Directory; who holds my deposit in trust and how it is protected; what are the tentative, firm and outside occupancy dates; what closing adjustments and occupancy fees will I pay; and can I assign the agreement, and for what fee. Get the answers in writing before your 10-day review ends.
How much of my condo deposit does Tarion protect?
Up to $20,000 per condo unit. Tarion pays if the builder does not return your deposit after the agreement ends in set situations, such as bankruptcy or a fundamental breach. Ontario’s Condominium Act also requires condo deposits to be held in trust. Since GTA deposits often exceed $20,000, ask how the rest of your money is protected before you sign in 2027.
Is there a cooling-off period for pre-construction condos in Ontario?
Yes, 10 days. Under section 73 of Ontario’s Condominium Act, a buyer of a new condo can cancel by written notice received by the builder or its lawyer within 10 days of the latest of receiving the disclosure statement, the condominium guide, or the fully signed agreement. The builder must refund the money promptly, without penalty, with interest.
What compensation do I get if my pre-construction condo is delayed in Ontario?
Up to $7,500 under the Tarion warranty. If a firm occupancy date is missed, Tarion’s condo rules provide a fixed $150 a day for living expenses within that $7,500 total, plus $1,500 if the builder did not give 10 days’ notice of the delay. If the unit is not ready by the outside occupancy date, you have 30 days to end the agreement for a full refund with interest.
How do I check if a builder is licensed in Ontario?
Search HCRA’s Ontario Builder Directory. It shows a builder’s licensing status, years of activity and number of homes built, plus HCRA regulatory actions such as conduct concerns, charges and convictions. You can also filter by insolvency status and search by director or officer name. HCRA says builders not in the Directory are likely not operating legally in Ontario.
What is included in an interim occupancy fee in Ontario?
Three things at most. Ontario’s Condominium Act caps the monthly occupancy fee at interest on your unpaid balance at the prescribed rate, an estimate of municipal taxes for the unit, and the projected monthly common expenses. You pay it while living in the unit before the building is registered and you get title, so none of it reduces a mortgage balance.
What happens if my pre-construction condo appraises for less than I paid?
You usually cover the gap in cash. Lenders base the mortgage on the home’s value at closing, so if a $650,000 unit appraises at $600,000, you pay the $50,000 difference on top of your down payment. With GTA resale condo medians down 12% to 23% between 2024 and 2026 in many areas, plan for this before you sign.
Do first-time buyers get a GST rebate on new homes in Ontario?
Yes, if they qualify. The federal first-time home buyers’ rebate covers the GST, or federal part of the HST, on new homes up to $1 million, with partial relief to $1.5 million, for agreements signed on or after 20 March 2025 and before 2031, up to $50,000. CRA’s page, updated June 2026, also lists an Ontario rebate of up to $80,000. Confirm eligibility with your lawyer.
Sources
- HCRA – Ontario Builder Directory
- Tarion – Deposit protection (coverage and claims before you move in)
- Tarion – Condo units: coverage for occupancy dates, delays and cancellations
- Tarion – Freehold: coverage for closing dates and delays
- Condominium Act, 1998 (e-Laws)
- Canada Revenue Agency – First-time home buyers’ (FTHB) GST/HST rebate
- FCAC – Getting preapproved for a mortgage
Related reading
- Top 5 Best Neighbourhoods to Live in Mississauga in 2027
- Top 5 Best Neighbourhoods to Live in Brampton in 2027
- Top 5 Best Neighbourhoods to Live in Markham in 2027
- Top 5 Best Neighbourhoods to Live in Oakville in 2027
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.