Buying a home that hasn’t been built yet can feel like a leap of faith. You sign today, pay deposits over months or years, and get the keys much later. For many first-time buyers in Canada, though, pre-construction is the most realistic way into a brand-new home. It spreads out the down payment, gives you time to save, and lets you pick finishes nobody else has used.
This guide walks through the whole process in order, so you know what to expect at each stage and which questions to ask before you sign.
What “pre-construction” actually means
A pre-construction home is sold before it is built, often before the builder has even broken ground. You buy from the builder (also called the developer or declarant for condos) using floor plans, renderings and a sales centre model rather than a finished home. Projects move through stages you’ll see on every listing on Explore New Homes: planning, coming soon, platinum access (VIP or broker previews), new release and public sales, then construction and completion.
The earlier you buy, the more choice you usually get on floor plans and views. The trade-off is a longer wait and more uncertainty about the final completion date.
Step 1: Work out your budget before you visit a sales centre
Sales centres are designed to get you excited. Know your numbers first.
- Deposits: condos in the GTA commonly ask for 15–20% of the price, paid in instalments over the first year or two. Freehold homes and townhomes often use fixed amounts instead. Our deposit structure guide explains the common patterns.
- Mortgage for the balance: you’ll need a mortgage for the rest at closing, and the lender will look at your income and the rates then, not today. Read our mortgage pre-approval guide before you commit.
- Closing costs: land transfer tax, legal fees, development charges and other adjustments can add tens of thousands of dollars. See closing costs for pre-construction homes.
A good rule: only commit to a deposit schedule you could keep paying even if your income dipped for a few months.
Step 2: Pick the right type of home and location
Most first-time buyers choose between a condo and a townhome. Condos tend to have lower entry prices and amenities, but monthly maintenance fees. Townhomes give you more space and sometimes a yard, at a higher price. Our condo vs townhome comparison goes deeper.
Location matters more than any finish upgrade. Look for transit, schools, jobs and planned infrastructure. Our guide to pre-construction near GTA transit and best cities to buy in Ontario are good starting points. You can also browse by city, for example Toronto, Mississauga, Brampton or Oshawa.
Step 3: Check the builder, not just the brochure
The builder’s track record is the single best predictor of how your experience will go. Look at their completed buildings, how long past their original dates those projects closed, and what owners say about quality. In Ontario, every new-home builder and vendor must be licensed by the Home Construction Regulatory Authority (HCRA), and you can look them up in the Ontario Builder Directory. Our guide to choosing a developer has a full checklist, and you can browse builder profiles such as Mattamy Homes, Tridel and Minto.
Step 4: Read the agreement and use your cooling-off period
New condo purchases in Ontario come with a 10-day cooling-off period under the Condominium Act. You can cancel within that window and get your deposit back. Use those days to have a real estate lawyer review the agreement and disclosure statement. Freehold homes do not get this automatic right, so ask for a lawyer-review condition before you sign. Details are in our 10-day cooling-off guide.
Things your lawyer will look at include the occupancy date and extension rights, caps (or lack of caps) on development charges and levies, the assignment clause, and how HST and rebates are handled in the price.
Step 5: Understand the rebates you may qualify for
New homes carry HST, but several rebates can reduce it significantly. Federal and Ontario programs introduced in 2025 and 2026 target first-time buyers and, for a limited signing window, all buyers of new homes used as a primary residence. Most builders build the standard rebates into the advertised price, so check what you’re assigning to the builder. Our GST/HST rebate guide explains each program and its conditions.
Ontario first-time buyers can also claim a land transfer tax refund, and Toronto buyers can claim a separate municipal refund.
Step 6: Choose upgrades wisely
Your design centre appointment is where budgets slip. Prioritise things that are hard to change later: layout options, ceiling heights, extra outlets, plumbing rough-ins and flooring. Paint and light fixtures can wait. Our guide on how to read a floor plan helps you judge layouts before you choose finishes.
Step 7: Occupancy, inspection and closing
For condos there are usually two dates: interim occupancy, when you can move in and pay monthly occupancy fees, and final closing, when the building is registered and you take title. Our occupancy vs final closing guide explains both.
Before you take possession, you’ll do a pre-delivery inspection (PDI) with the builder and record any defects. See what to expect at your inspection and our overview of Tarion warranty coverage.
Common first-time buyer mistakes
- Stretching to the maximum mortgage you might qualify for, with no cushion for rate changes.
- Ignoring closing costs and development charge adjustments.
- Assuming you can easily sell before closing. Assignments have rules, fees and taxes; see our assignment sale guide.
- Choosing a unit on price alone without checking orientation, noise and future neighbouring buildings.
- Skipping the lawyer review during the cooling-off period.
Is pre-construction right for you?
Pre-construction suits buyers who can wait, want a new home with a warranty, and prefer paying the down payment gradually. If you need to move within a year, a resale home or a builder’s move-in-ready inventory may be a better fit. Our pre-construction vs resale comparison lays out both sides, and the complete Canadian pre-construction guide covers the market more broadly.
When you’re ready to look, browse current condos and townhomes, or register for VIP access to hear about launches early.
Frequently asked questions
How much do I need to buy a pre-construction condo?
Plan for the full deposit schedule (often 15–20% of the price in the GTA), plus closing costs, plus enough income to qualify for a mortgage on the remaining balance at closing.
Can a first-time buyer use the RRSP Home Buyers’ Plan or an FHSA?
Generally yes, but the timing rules for withdrawals matter when your closing is years away. Speak with your financial institution about when to withdraw so the funds are used within the program rules.
What happens if the project is cancelled?
Your deposits should be returned, and in Ontario condo deposits are protected by trust requirements and Tarion coverage up to set limits. Interest may be paid depending on the agreement and the rules that apply.
This article is general information, not legal, tax or financial advice. Program rules and rebate conditions change, so confirm details with a real estate lawyer, your lender and the CRA before you buy.
