Investor guide
The First-Time Pre-Construction Buyer's Guide
Everything you need to know before your first deposit — from reservation to closing day.
Start with the full purchase timeline
A pre-construction condo is purchased before the suite is complete. You may reserve a unit, sign an Agreement of Purchase and Sale, pay deposits in stages, attend interim occupancy and complete the final closing months or years later.
The longer timeline can give buyers time to build savings, but it also means your income, mortgage qualification and plans may change. Choose a project and completion window that fit your real life—not only today's market.
Know what happens after signing
In Ontario, most new-condominium purchasers receive a 10-calendar-day cooling-off period. Use it to have a qualified real-estate lawyer review the agreement, disclosure statement, adjustments, assignment terms and development-charge caps.
- Confirm every deposit amount and due date.
- Request mortgage guidance early, even if closing is years away.
- Review cancellation, delay and occupancy provisions with your lawyer.
- Keep copies of every amendment, receipt and builder notice.
Budget beyond the advertised price
Your purchase price is only one part of the cost. Plan for legal fees, land transfer tax, utility and tax adjustments, development or education levies, occupancy fees, moving costs and, for investors, potential HST cash-flow requirements.
Ask for a closing-cost estimate before the cooling-off period ends. Exact amounts depend on the agreement, municipality and how you intend to use the home.
Prepare for occupancy and closing
Interim occupancy can begin before the condominium corporation is registered. During this period you may receive the keys and pay a monthly occupancy fee, but title has not transferred yet. Final closing happens after registration, when your mortgage funds and ownership transfers.
Before occupancy, complete the pre-delivery inspection carefully and record missing, damaged or incomplete items. Keep your financing documents current and respond promptly to requests from your lawyer and lender.
Key takeaway
Treat a pre-construction purchase as a long-term commitment: confirm the total cash requirement, review the agreement with a lawyer, and plan financing well before closing.
This guide is general information, not legal, tax or financial advice. Rules, fees and program details can change; confirm current requirements with the appropriate qualified professional.