Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A builder inventory home is a finished or nearly finished new home the builder has not sold, usually with a quick closing. In 2027 the key date is 31 March: agreements signed by then can qualify for up to $130,000 in combined HST relief on a new home valued up to $1 million, if it will be your primary residence. Tarion’s warranty still applies from your possession date.
This guide is for GTA buyers who want a brand-new home without waiting years for construction, and who are looking at “move-in ready” or “quick close” homes from builders in 2027. You will learn how inventory homes differ from pre-construction, how the HST rebate and Tarion warranty apply, and how to negotiate.
What is a builder inventory home?
An inventory home is a new house, townhouse or condo unit that is finished, or close to finished, and still owned by the builder. Builders also call them move-in ready, quick close or standing inventory. You buy straight from the builder, but instead of waiting two or three years, you close in weeks or months.
You still get the protections of a new home: the builder must be licensed, the home is covered by the new home warranty, and you get a pre-delivery inspection. What you usually give up is choice. Finishes are already selected, and the lot or unit is fixed.
Why are there so many new homes for sale in the GTA?
Because new home sales are still well below normal. BILD, the GTA builders’ association, reports 949 new home sales in September 2026, 52% below the 10-year average for the month, and 19,957 new homes available for sale across the GTA. That figure counts all unsold units in projects on the market, not only finished homes, but it shows how much choice buyers have.
| GTA new homes, September 2026 | Low-rise (houses and towns) | High-rise (condos and stacked towns) |
|---|---|---|
| Sales in September | 820 | 129 |
| Change vs September 2025 | significant increase | −40% |
| Remaining inventory | 7,048 homes | 12,909 units |
| Months of inventory | about 11 | about 49 |
| Benchmark price (before any HST rebate) | $1,246,764 (−13.3% in 12 months) | $1,031,574 (unchanged) |
Source: BILD and Altus Group, GTA new home sales release, 22 October 2026. Months of inventory are based on average sales over the last 12 months.
Low-rise sales have run above their 10-year average for six months in a row since the HST rebate began in April 2026, and BILD says more than half of September’s sales were semis and townhouses. Condo sales hit a record low for September. In practical terms, house buyers face some competition again, while condo buyers have a large pool of unsold units to choose from.
Can you get the HST rebate on an inventory home?
Often yes, if you act before the deadline. CRA Notice 346 (August 2026) sets out Ontario’s enhanced new housing rebate. It applies to any individual buying a new home from a builder for use as their own or a relation’s primary residence, not only first-time buyers. The agreement of purchase and sale must be signed between 1 April 2026 and 31 March 2027.
| New home value | Ontario enhanced rebate (8% provincial part of HST) |
|---|---|
| Up to $1,000,000 | Full provincial HST, up to $80,000 |
| Over $1,000,000 to $1,500,000 | Flat $80,000 |
| Over $1,500,000 to under $1,850,000 | Partial rebate, phasing out |
| $1,850,000 and above | None; only the regular Ontario new housing rebate of up to $24,000 |
Source: CRA Notice 346, Ontario Enhanced New Housing Rebate, August 2026. Ontario’s New Home Affordability Payment is separate and covers up to $50,000 of the 5% federal part.
On top of that, Ontario’s New Home Affordability Payment can cover up to 100% of the 5% federal part of the HST, up to $50,000. It is reduced by any federal rebate you get, and first-time buyers must claim the federal First-Time Home Buyers’ GST Rebate first. Together, a new home valued at $1 million can see up to $130,000 of HST relief.
For a builder sale, the notice also requires construction to begin by 31 December 2028 and be substantially complete by 31 December 2031. BILD says those deadlines have held back high-rise pre-construction sales. An inventory home already has its construction behind it, but the notice gives no example of a home that was complete when the agreement was signed, so ask your lawyer and the builder to confirm eligibility in writing. My guide to the new-home tax rebates covers the other programs.
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Who gets the rebate: you or the builder?
Often the builder pays or credits it to you on closing. Notice 346 says both of you must confirm you are eligible, and if the builder knew or should have known you were not, both of you can be held liable to repay it. If the builder does not credit it, you apply to the CRA yourself.
This matters if your plans could change. If you intend to rent the home out, it is not your primary residence and you do not qualify. Check what the agreement says you owe the builder in that case, and read that clause with your lawyer before you sign.
What does the Tarion warranty cover on an inventory home?
The same as any new home, and it starts when you take possession, not when the house was finished. Tarion says the one-year and two-year warranties begin on the date of possession, and the seven-year major structural defect warranty ends on the seventh anniversary of that date. Your possession date is set out on the Certificate of Completion and Possession the builder gives you at the pre-delivery inspection.
- Year one: defects in work and materials, Building Code violations, unauthorized substitutions and fitness for habitation.
- Year two: water getting through the basement, foundation or building envelope, cladding problems, and defects in electrical, plumbing and heating systems.
- Years one to seven: major structural defects.
For agreements signed on or after 1 July 2023, Tarion’s maximum warranty coverage is $400,000 for a freehold home and $300,000 for a condo unit. Appliances get only limited coverage: Tarion treats them as personal property, though damage from the builder’s installation falls under the one-year warranty. See my post on the Tarion warranty for how claims work.
How do you check the builder before you sign?
Use the HCRA’s Ontario Builder Directory. The Home Construction Regulatory Authority licenses builders and sellers, and the directory shows whether a builder is licensed, how many years it has been active, how many homes it has built, and any charges or convictions. You can also check warranty information for a specific home. The HCRA calls a builder missing from the directory a serious warning sign. My walkthrough of how to check a builder takes about twenty minutes.
Can you cancel an inventory home purchase?
It depends on the type of home. If the inventory home is a condo unit bought from the builder, the HCRA says you have 10 calendar days to cancel under the Condominium Act and get your deposit back. For a freehold house or townhouse, there is no automatic cooling-off period in Ontario, so the agreement is binding once signed unless it has conditions. Have a lawyer review it before you sign, not after. My post on the cooling-off period for freehold new homes explains the gap.
What should you inspect before closing on a move-in ready home?
Every builder must do a pre-delivery inspection (PDI) with you or your designate before handing over the keys. Tarion says the PDI is used to record anything incomplete, damaged, missing or not working, on a PDI form that becomes the official record of the home’s condition before you move in.
- Bring your purchase agreement and check for unauthorized substitutions of specified finishes.
- Look at tiles, counters, floors, doors and windows inside, and brickwork, siding, screens and grading outside.
- Note anything you cannot inspect because of weather or access, and take photos.
- Ask the builder to show you how the heating, ventilation and plumbing work.
Because an inventory home is already finished, I also suggest hiring your own home inspector to walk it with you before the PDI. A home that sat empty can have issues that only show up when it is used. My PDI checklist covers the walkthrough in detail.
How is your deposit protected on an inventory home?
Tarion protects deposits on new freehold homes up to $60,000 for a price of $600,000 or less, and 10% of the price up to $100,000 above that. Tarion asks freehold buyers to register their purchase agreement within 45 days of signing to qualify for the maximum coverage; it has deferred the change to coverage for late registration until 1 January 2027. Condo deposits must be held in trust, with Tarion backing up to $20,000. With a quick close, your deposit is at risk for a much shorter time than on a pre-construction purchase.
An inventory home in 2027 can be one of the best-value ways into a new house, because you can see exactly what you are buying and still catch the HST rebate. Negotiate on more than price: ask for caps on closing adjustments, included upgrades and a closing date that suits you. A finished home costs a builder money to carry, and BILD’s numbers show many builders are still carrying plenty of unsold stock.
Closing adjustments can add thousands of dollars to a new home. Ask for the full list of adjustments before you sign, including utility connections and any levies or fees the agreement passes on to you. My guide to closing costs on a new build lists the common ones.
What to do next
- Check the builder in the HCRA Ontario Builder Directory.
- Have a lawyer confirm in writing that the home and you qualify for the HST rebates, and sign before 31 March 2027.
- Get the full list of closing adjustments and negotiate caps.
- Book your own inspector, then attend the PDI with your agreement in hand.
- Register your freehold purchase with Tarion within 45 days of signing.
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
What does move-in ready mean for a new home in Ontario?
A move-in ready home, or builder inventory home, is a new house, townhouse or condo unit that is finished or nearly finished and still owned by the builder. In the GTA they are also sold as move-in ready or quick close homes. You buy directly from the builder, close in weeks or months, and still get Tarion warranty coverage and a pre-delivery inspection.
Do inventory homes qualify for the Ontario HST rebate in 2027?
They can. Ontario’s enhanced new housing rebate applies to new homes bought from a builder under agreements signed from 1 April 2026 to 31 March 2027, for use as a primary residence. CRA Notice 346 gives no example of a home already complete at signing, so have your lawyer and builder confirm eligibility in writing before you sign.
How much is the HST rebate on a new home in Ontario?
Up to $130,000 on a new home valued up to $1 million, for agreements signed from 1 April 2026 to 31 March 2027. Ontario’s enhanced rebate covers the full 8% provincial part of the HST, up to $80,000, and its New Home Affordability Payment covers up to $50,000 of the 5% federal part. The home must be your primary residence.
When does the Tarion warranty start on a move-in ready home?
The Tarion warranty starts on your date of possession, not the date the home was finished. Your possession date is recorded on the Certificate of Completion and Possession given at the pre-delivery inspection. The one-year and two-year warranties run from that date, and the major structural defect warranty ends on its seventh anniversary.
Can I cancel a new home purchase in Ontario?
Only a condo purchase from a builder comes with an automatic cooling-off period: the HCRA says buyers have 10 calendar days to cancel under the Condominium Act and get the deposit back. Freehold houses and townhouses have no statutory cooling-off period in Ontario, so the agreement binds you once signed unless it contains conditions.
Can you negotiate the price of a builder inventory home?
Usually, yes. In September 2026, GTA builders had about 11 months of low-rise inventory and 49 months of condo inventory, according to BILD and Altus Group. Builders carrying finished homes have an incentive to sell, so ask about price, included upgrades, caps on closing adjustments and the closing date. Nothing is guaranteed, and popular low-rise models may not move much.
How many unsold new homes are there in the GTA?
19,957 new homes were available for sale across the GTA in September 2026, according to BILD and Altus Group: 7,048 low-rise homes and 12,909 condo and stacked townhouse units. That count includes unsold homes in projects not yet built, not only finished inventory. Condo inventory equalled about 49 months of sales.
Is my deposit protected on an inventory home in Ontario?
Yes. Tarion protects freehold deposits up to $60,000 for homes priced at $600,000 or less, and 10% of the price up to $100,000 above that. Register your agreement with Tarion within 45 days of signing to qualify for the maximum. Condo deposits must be held in trust, with Tarion protection up to $20,000.
How do I check if a builder is licensed in Ontario?
Search the builder’s name in the HCRA’s Ontario Builder Directory, a free online database run by the Home Construction Regulatory Authority. It shows whether the builder is licensed, its years of activity, the number of homes built, any charges or convictions, and warranty information for a home. A builder not listed is a serious warning sign.
Sources
- CRA Notice 346: Ontario Enhanced New Housing Rebate (August 2026)
- BILD: New high-rise sales in the GTA hit record low for September, while low-rise new home sales outperform (22 October 2026)
- HCRA: New to Ontario? What to know before buying a newly built home (28 July 2026)
- Tarion: What is the new home warranty
- Tarion: Coverage for freehold, contract, condo units and condo conversions
- Tarion: Coverage and claims before you move in
- Tarion: The pre-delivery inspection
- HCRA: Before you buy a new home in Ontario
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?
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.