Published 16 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Resale gives you a known product, a firm closing date and prices set by recent sales. New construction gives a warranty, modern layouts and a long timeline, but adds deposits, development charges and closing adjustments, possible occupancy fees on condos, HST treatment differences, and the risk that values or your financing change before closing. Match the choice to your timeline and risk tolerance.
Side by side
| New construction | Resale | |
|---|---|---|
| Price certainty | Set early, costs can be added at closing | Set by negotiation on current sales |
| Timeline | Months to years | 30–90 days typically |
| Warranty | Tarion coverage | As-is, inspection recommended |
| Deposits | Staged, often substantial | Usually a single deposit |
| Closing costs | Development charges and adjustments can be large unless capped | Standard land transfer tax and legal |
| Condition risk | Construction defects, delays | Age and maintenance history |
| Financing | Must qualify at closing, years later | Qualify now |
What buyers underestimate
- Uncapped development charges and adjustments on new builds.
- Interim occupancy fees on condos before final closing.
- Appraisal gaps if values fall before closing.
- HST treatment and rebates on new homes versus exempt resale sales. See HST when selling.
Check you will qualify at closing
For a new build, run your budget at a conservative rate.
Free tool — what can you actually afford here?
Who each suits
- New construction: buyers with time, flexibility and a cash cushion who want a warranty and modern layouts.
- Resale: buyers who need to move on a date, want price certainty and can inspect what they are buying.
See pre-construction guidance.
Where I fit
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty. I work both sides across Toronto and the GTA and will run the two scenarios with your numbers rather than a sales-centre pitch.
The takeaway
Resale means price certainty, a known condition and a near-term close. New construction means warranty and modern design but staged deposits, closing adjustments, occupancy fees and the risk of qualifying years from now. Choose by timeline, cash cushion and risk tolerance.
Talk it through with me
Comparing a new build with a resale?
Send both options. I will compare total cost, timing and risk side by side.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Is it better to buy new construction or resale in Toronto?
Resale offers price certainty and a fast close; new construction offers warranty and modern layouts with longer timelines and extra closing costs.
What extra costs come with a new build?
Development charges, closing adjustments, possible occupancy fees on condos, and HST treatment differences.
Do new homes come with a warranty in Ontario?
Yes, through Tarion, with coverage limits and timeframes.
Can I get out of a new construction contract?
New condominium purchases from a developer have a 10-day rescission period. Freehold contracts differ, so get legal advice.
Do I pay HST on a new home?
New homes are generally subject to HST, often with rebates built into the price. Resale homes are usually exempt.
What if my new build appraises low at closing?
You may need additional cash to close, so plan a cushion.
Sources
- Tarion — Ontario’s new home warranty and deposit protection program. Accessed 16 September 2026.
- Condominium Act, 1998 — including the 10-day rescission period for new condominium units bought from a developer. Accessed 16 September 2026.
- TRREB Market Watch, August 2026 — district tables W06, W07 and W08 for all home types, detached and condo apartment, plus the MLS® HPI benchmark page. Accessed 16 September 2026.
Related reading
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, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.