Pre Construction | What to Know Before Signing in York Region

by Jonathan Colford

York Region Buyer Guide

Pre Construction in York Region: What to Know Before You Sign

Buying a home before it is built can be a smart move for the right buyer. It also comes with deposits, timelines, builder paperwork and costs that are very different from a resale purchase.

Jonathan Colford | Sales Representative | eXp Realty Brokerage.

Local insight from Jonathan Colford, York Region Real Estate Agent.

Talk Through a Pre-Construction Purchase Start Your Buyer Plan

A pre-construction home is bought on paper, so the agreement you sign matters far more than the sales centre experience.

Across York Region, new communities in Newmarket, Aurora, East Gwillimbury, King and neighbouring areas continue to attract buyers who want a new home, modern layouts and a longer runway to save for closing. Before you sign, it helps to understand what you are agreeing to, what protections exist in Ontario and which costs show up on top of the price.

This guide walks through the main steps in plain English. It is general information, not legal advice, and a real estate lawyer should review any builder agreement before you sign it. If you are still comparing property types, our guide to condo versus freehold in York Region is a useful companion.

In short: have a lawyer review the agreement, understand your deposit schedule and protection, confirm what closing costs and adjustments apply, and make sure your financing plan still works if the closing date moves.

Before signing

Read the whole agreement

Builder agreements can include tentative closing dates, price adjustments, development charges, and limits on changes. Have a lawyer review it before you commit.

Your money

Know the deposit schedule

Deposits are usually paid in stages. Understand when each payment is due, where it is held and what protection applies.

Your timeline

Plan for closing to move

Occupancy and closing dates can shift. Your mortgage approval, rate hold and living situation should be able to handle a delay.

How pre-construction buying works in Ontario

You usually sign an agreement of purchase and sale with a builder, pay a deposit in stages and then wait while the home is built. Final closing happens after the home is complete and, for condominiums, after the unit is registered.

Because many buyers sign well before they take possession, the mortgage you qualify for today may not be the mortgage you need at closing. Read our guide to mortgage pre-approval in 2026 and speak with your lender about how long a rate hold can last.

Freehold versus condominium new builds

Freehold new builds such as detached homes and townhomes and condominium units follow different rules. Condominium purchasers typically receive a disclosure statement and have a 10 day cooling off period under the Condominium Act, while freehold purchases do not carry the same statutory right. A lawyer can confirm what applies to your specific purchase.

Deposits and Tarion protection

Tarion is the organization that administers Ontario's new home warranty and deposit protection program. For freehold homes signed on or after January 1, 2018, Tarion deposit coverage is up to $60,000 on prices of $600,000 or less, and 10 percent of the price to a maximum of $100,000 on higher prices. For condominium units, deposits are held in trust under the Condominium Act, with additional Tarion coverage of up to $20,000.

Tarion has also introduced a requirement for buyers to register new pre-construction purchase agreements within 45 days. Changes to deposit coverage for buyers who do not register are set to take effect January 1, 2027, so confirm the current rules directly with Tarion and your lawyer before you sign.

Always ask where your deposit will be held, who is responsible for releasing it and how it is protected if the project does not proceed.

Warranty coverage after you move in

Once you take possession, Tarion warranty coverage includes the pre-delivery inspection (PDI), a 30 day warranty, a one year warranty for workmanship, materials and Ontario Building Code violations, a two year warranty for water penetration and certain systems, and a seven year warranty for major structural defects.

Take the PDI seriously. Bring a checklist, allow enough time and record everything you find. Our guide on what to expect during a home inspection in York Region explains how to look for issues, and the same careful approach applies to a new home.

Costs beyond the purchase price

Development charges, levies and utility connection fees, which may be passed on to the buyer depending on the agreement
HST, and any federal or Ontario rebates you may qualify for, including relief announced for eligible first-time buyers of new homes
Ontario land transfer tax, with a refund of up to $4,000 available for eligible first-time buyers
Legal fees and disbursements, including the cost of reviewing the agreement and completing closing
Tarion enrolment and registration related costs where applicable
Closing adjustments for items such as property tax, utilities and prepaid items
Upgrades, window coverings, appliances, parking, lockers and any items not included in the base price

Federal legislation eliminating GST for eligible first-time buyers on new homes up to $1 million, with partial relief up to $1.5 million, received Royal Assent in March 2026, and Ontario has announced a rebate of the provincial portion of HST for eligible first-time buyers of new homes. Eligibility rules are detailed, so confirm the current status with your lawyer, lender and the Canada Revenue Agency before you rely on any figure.

For a full look at the buyer side of closing, see our first-time home buyer guide for York Region.

Questions to ask before you sign

What is the total price including HST, upgrades, levies and development charges?
What is the deposit schedule and where are deposits held?
How and when can the builder change the closing date, and what are my rights if it is delayed?
What happens to my deposit if I cannot obtain a mortgage at closing?
Can the builder terminate the agreement, and under what conditions?
What is included in the base price, and what is an upgrade?
Has my lawyer reviewed the full agreement and all schedules?
Are my financing and rate hold realistic for the expected closing date?

A second set of eyes helps. Our list of 10 questions to ask a realtor before you buy or sell in York Region can help you decide who should be on your team, and our guide to what buyers should review before making an offer covers many of the same fundamentals.

Pre-construction or resale: which is right for you?

Pre-construction can suit buyers who want a new home, have time to save and can tolerate timeline uncertainty. A resale home may be a better fit if you need a firm closing date, want to see exactly what you are buying or are comparing established neighbourhoods. The right answer depends on your budget, timing and goals, and we can compare both paths with you using current York Region data. You can also explore active communities such as East Gwillimbury real estate.

Frequently asked questions

Do I need a lawyer to review a pre-construction agreement?

It is strongly recommended. Builder agreements are long, technical and written to protect the builder. A real estate lawyer can explain the terms, flag risks and confirm the closing mechanics before you sign.

How is my deposit protected in Ontario?

Tarion provides deposit protection for new homes. Freehold coverage depends on the purchase price and is capped at $100,000, and condominium deposits are held in trust with additional Tarion coverage of up to $20,000. Confirm current rules, including the new registration requirement, with Tarion.

Can the closing date change?

Yes. Closing and occupancy dates on new builds can move. Review the delayed closing terms in your agreement and make sure your mortgage and living arrangements can handle a delay.

Are there rebates for first-time buyers of new homes?

Federal GST relief for eligible first-time buyers of new homes up to $1 million became law in 2026, and Ontario has announced HST relief for eligible first-time buyers. Rules and eligibility are detailed, so confirm the current status with your lawyer, lender and the Canada Revenue Agency.

What is the pre-delivery inspection?

The PDI is a walkthrough with the builder before you take possession where you note defects and incomplete items. Items recorded on the form become the basis of your warranty claims, so it is worth taking the time to do it carefully.

Is pre-construction cheaper than resale?

Not always. The headline price may look attractive, but levies, upgrades, HST and adjustments can add up. Compare the total cost to similar resale homes in York Region before deciding.

Official resources

Rules, rebates and warranty coverage can change. Use official sources and obtain legal advice before signing.

Tarion: Coverage Before You Close Tarion: Deposit Protection Government of Canada: GST Relief for First-Time Buyers of New Homes Ontario Land Transfer Tax Refund for First-Time Buyers

This article provides general real estate information as of October 2026. Rules, rebates, warranty coverage, mortgage costs and market conditions may change. It does not provide legal, financial, mortgage, tax or accounting advice. Confirm details with a lawyer, lender and the applicable authority.