Pre-construction homes, homes sold before or during construction, make up a large share of new housing in Canada’s biggest cities. They offer a brand-new home, time to save and often meaningful tax relief, in exchange for patience and some risk. This guide brings together everything you need to know in 2026, with links to our detailed articles on each topic.
How pre-construction works
- Launch: builders release projects in stages, often starting with VIP or platinum access sales before public launch.
- Sign the agreement: you choose a unit or lot and sign an agreement of purchase and sale.
- Cooling-off: in Ontario, new condo buyers get 10 days to cancel; see the cooling-off period.
- Deposits: paid over time; see deposit structures.
- Construction: typically two to five years for condos, less for many freehold homes.
- Inspection and possession: see the pre-delivery inspection and occupancy vs final closing.
- Closing: mortgage funds and you pay closing costs.
Types of new homes
- Condos: high-rise and mid-rise apartments, plus lofts.
- Townhomes: freehold, condo, stacked and back-to-back.
- Detached and semi-detached homes in master-planned communities.
Compare formats in condo vs townhome.
What it costs
Beyond the price, budget for deposits, closing costs, and possibly HST depending on rebates. 2025 and 2026 brought major HST relief on new homes, especially in Ontario: up to $130,000 for eligible first-time buyers and, for agreements signed between April 1, 2026 and March 31, 2027, for other buyers of qualifying new homes. Read our GST/HST rebate guide.
On financing, insured mortgages for newly built homes can have 30-year amortizations, and the insured mortgage cap is $1.5 million. See the mortgage pre-approval guide.
Buyer protections by province
| Province | Key protections |
|---|---|
| Ontario | Tarion warranty (1, 2 and 7 years), deposit protection, HCRA builder licensing, 10-day condo cooling-off |
| British Columbia | Mandatory 2-5-10 home warranty, builder licensing, deposits held in trust, 7-day rescission for new strata units |
| Alberta | Mandatory new-home warranty (1-2-5-10), builder licensing, condo deposit protection rules |
See our Tarion warranty guide for Ontario details.
The main risks
- Delays: completion dates often move. Choose experienced builders; see how to choose a developer.
- Market change: values can fall before closing, causing appraisal shortfalls.
- Cancellation: projects that don’t reach sales or financing targets may be cancelled, though deposits are protected.
- Rising closing costs: uncapped development charges can increase.
Where to buy in Canada
Ontario
The GTA is Canada’s biggest pre-construction market. Explore city guides for Toronto, Mississauga, Brampton, Vaughan, Markham, Oakville, Milton, Whitby and Oshawa. Beyond the GTA, see Hamilton, Kitchener, Waterloo, Ottawa, London and Barrie. Our best cities in Ontario article compares them.
Alberta
Calgary and Edmonton offer lower prices, no land transfer tax and strong population growth. Read the Calgary and Edmonton guides and Calgary vs Edmonton.
British Columbia
Vancouver and Surrey have active pre-sale markets with high prices and strict disclosure rules. See the Vancouver and Surrey guides and Toronto vs Vancouver.
Who pre-construction suits
- First-time buyers who want time to save and can use rebates. Start with the first-time buyer’s guide.
- Move-up buyers who want a new home and can wait.
- Long-term investors with conservative budgets; see the investor guide.
Not sure? Compare pre-construction vs resale.
Next steps
Browse projects by city on our locations page, search the map, or see the projects to watch in 2026. Questions about how our site works? Visit how it works or our FAQ.
General information only, not legal, tax or financial advice. Rules vary by province and change over time; confirm details with local professionals.
