Pre-Construction Homes Closing in 2027: What GTA Buyers Need to Know

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — A plain guide for GTA buyers whose pre-construction condo or house closes in 2027: dates, mortgage, appraisal gap, rebates and cash needed.

This guide is for GTA buyers who signed for a pre-construction condo, townhouse or house years ago and expect to close in 2027. You will get the steps between now and the keys, the money questions that catch people out, and the rules and rebates that apply to a 2027 closing.

What does closing on a pre-construction home in 2027 involve?

It depends on what you bought.

• A freehold house or townhouse usually has one closing. You pay the balance, the deed is registered in your name, and you get the keys the same day.
• A condo usually has two stages. First comes interim occupancy: you move in, or take the keys, before the building is registered as a condominium, and you pay the builder a monthly occupancy fee. Then comes final closing, after registration, when your mortgage funds and the unit is transferred to you.

Ontario’s Condominium Act caps the occupancy fee at the total of three things: interest on the unpaid balance at a prescribed rate, an estimate of property tax, and the projected monthly common expenses. None of it reduces what you owe. The builder must tell you in writing within 30 days after the condominium is registered, unless you get the deed in that time. The details, including the prescribed rate, are in interim occupancy and the appraisal gap.

How many GTA condos are closing in 2027?

Fewer than in recent years, but still a lot. Urbanation’s third-quarter 2026 report counts 20,868 condo completions scheduled across the Greater Toronto and Hamilton Area in 2026, falling to 15,825 in 2027, 12,065 in 2028 and 4,213 in 2029. Completed but unsold new units stood at 5,127 in the third quarter, still 40% higher than a year earlier.

Why it matters to you: if your building closes in 2027, other owners in the same building may be trying to sell or rent at the same moment. Urbanation also reported that bulk buyers of unsold new units paid on average 40% less than the original prices in the same buildings. Those sales can show up in your appraisal.

When will my closing date actually be?

Check your Tarion Addendum, the warranty schedule attached to every new home agreement. For condos, Tarion explains two kinds of dates:

• Firm Occupancy Date. The builder commits to it. If it is missed, the builder must set a Delayed Occupancy Date and pay compensation.
• Tentative Occupancy Dates. Used when the builder cannot yet commit, often before construction starts. They must eventually become a firm date.
• Outside Occupancy Date. The latest date the builder agreed to. If you have no occupancy by then, you have 30 days to end the agreement and get your money back with interest.

Delay compensation can reach $7,500, including $150 a day for living costs without receipts. Tarion says that as a general rule at least 90 days’ written notice is needed to change a closing date, and that agreeing to a new date can mean giving up compensation, so read any amendment before you sign it.

Will my mortgage still be approved at closing?

Not automatically. A pre-approval from the year you signed is long gone. Your lender will check your income, debts and credit again, and will order an appraisal close to closing. You must pass the stress test at the higher of your contract rate plus two points or 5.25%.

Rates have moved since most 2027 closers signed. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026 and said a further increase could be needed. TRREB listed a five-year mortgage rate of 6.19% in October 2026, against 4.79% in February 2022.

Two federal changes from 15 December 2024 can help: the cap on insured mortgages rose to $1.5 million, and 30-year amortizations on insured mortgages opened to all first-time buyers and all buyers of new builds. A longer amortization lowers the payment, which helps you qualify, though it costs more interest over time.

What if the appraisal comes in below my purchase price?

This is the biggest 2027 risk. Urbanation describes high-rise construction timelines of four to five years, so most 2027 closings were sold around 2021 to 2023, near the peak. Here is how far values have moved since.

Source: TRREB Market Watch February 2022 and October 2026; Urbanation Q3 2026 condo market survey; TRREB MLS data via REALM, January–October 2024 vs 2026. Percentages are my arithmetic.

In my experience, when the appraisal is lower than the price, the lender lends against the appraisal and you cover the difference in cash. A simple example: you agreed to $700,000 and paid $140,000 in deposits. The unit appraises at $600,000 and your lender will lend 80% of that, $480,000. You now need $80,000 more, before closing costs. More on what you can and cannot do is in when the appraisal comes in low.

What closing costs should I budget for in 2027?

Expect more than on a resale. The main items:

• Land transfer tax. Ontario’s tax applies everywhere, and Toronto adds its own municipal tax. First-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto. See land transfer tax in Toronto.
• Builder adjustments. Your agreement lists the charges the builder can add to the price at closing, and some can be large. Ask your lawyer for the list now, while there is time to budget. The common ones are in closing costs on a new build in Ontario.
• Occupancy fees for condo buyers, for every month between occupancy and final closing.
• Legal fees, title insurance and mortgage costs, including the CMHC premium if your down payment is under 20%.

The Condominium Act also requires the builder to refund any property tax you paid through occupancy fees above what was actually assessed, and lets the builder charge you if it was too little. Either way it shows up on your statement of adjustments.

Which HST rebates apply to a home closing in 2027?

This is where the date you signed matters more than the date you close.

• Ontario’s enhanced new housing rebate (up to $80,000 of the provincial HST) applies to agreements signed from 1 April 2026 to 31 March 2027. CRA says a later amendment or assignment does not make an older agreement eligible. Most 2027 closings were signed long before, so most will not qualify.
• The federal first-time home buyers’ GST rebate covers agreements signed on or after 20 March 2025, with full relief on new homes up to $1 million, phased out at $1.5 million. Again, most 2027 closings were signed earlier.
• The regular new housing rebates still apply to owner-occupiers who meet the rules. In my experience many builders build these into the price, on the basis that you will live there.

If you plan to rent the unit out, the owner-occupier rebates do not fit, and a separate rental rebate has its own rules. Ask your lawyer which rebates your agreement assumes. The full rebate picture for newer agreements is in Ontario’s HST rebate on new homes.

What protections do I have before closing?

• Deposit held in trust. For condos, the Condominium Act requires deposits to be held in trust and the builder to pay interest on them at a prescribed rate.
• Tarion deposit protection. Up to $20,000 for a condo unit; for freehold homes up to $60,000 at $600,000 or less, and 10% of the price to a maximum of $100,000 above that.
• The 45-day notice. Freehold buyers who signed on or after 1 April 2026 should register their agreement with Tarion within 45 days; the effect on deposit coverage starts on 1 January 2027. This affects newer contracts more than 2027 closings. See Tarion’s 45-day notice rule.

One date people mix up: the new 10-day cooling-off period for freehold new homes now starts on 1 January 2028, not in 2027, according to Tarion.

Should I close, assign or rent it out in 2027?

If you plan to live there and can close, closing is usually the simplest path. If it was an investment, run the rent numbers honestly. Urbanation’s average GTHA condo rent in the third quarter of 2026 was $2,604 for 681 square feet. It reported rents rising 2.4% from the second quarter and condo rental listings down 25% from a year earlier, which helps owners who close in 2027.

What to do next

1. Pull out your agreement and Tarion Addendum and write down your firm or tentative dates and your Outside Occupancy Date.
2. Use the condo estimator on this page to see what similar finished units are worth today.
3. Ask a lender or broker to requalify you now at current rates, including a 30-year amortization if you are eligible.
4. Ask your lawyer for the list of closing adjustments and which HST rebates your price assumes.
5. If the numbers do not work, talk to me early about your options, from renting to selling, anywhere in the GTA.

Frequently asked questions

Sources

• Tarion: Condo units, coverage for occupancy dates, delays and cancellations
• Tarion: Pre-possession (deposit) coverage
• Condominium Act, 1998 (e-Laws), ss. 80–82
• Urbanation: GTHA new condo sales double from a year ago in Q3 (19 October 2026)
• Canada Revenue Agency: GST/HST Notice 346, Ontario enhanced new housing rebate (August 2026)
• Department of Finance Canada: mortgage reforms, $1.5M insured cap and 30-year amortizations (September 2024)
• Tarion: Important updates (cooling-off period moved to 1 January 2028)
• Urbanation: Rental recovery begins in the GTHA as vacancy and incentives fall (27 October 2026)

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?