Top 10 Must-Ask Questions Before Buying Pre-Construction

Buying pre-construction means you’re buying a home (usually a condo or townhouse) before it’s built — directly from a builder. You see floorplans and prices now, and the home will be ready in a few years (e.g., 2027 or 2028). You’re locking in today’s price for a future home.

Not right away. Most builders don’t need a mortgage approval at signing, but they may ask for a mortgage pre-approval within 30 to 60 days. The actual mortgage starts closer to the final closing (when construction is done). Until then, you’re just paying the deposit in stages.

You usually need a 15%–20% deposit, paid in small parts over months (e.g., 5% now, 5% in 90 days, etc.). Plus, budget for closing costs (legal fees, taxes, etc.) when the unit is done — usually another 3–5% of the purchase price.

For example:

• $5,000 on signing

• Balance to 5% in 30 days

• 5% in 90 days

• 5% in 180 days

• 5% on occupancy

  Always confirm the exact schedule with your agent or the sales office, and know that these payments are held in trust.

The occupancy date is when you can move in (interim occupancy), and the final closing date is when ownership is officially transferred. These dates can change, so the builder usually gives an estimated range (e.g., Q4 2027). Make sure to read the Tarion Addendum for the firm and outside occupancy dates, as delays are common.

Yes. In addition to your mortgage and down payment, you’ll have closing costs like:

• Development levies/charges

• Legal fees

• HST (if not principal residence)

• Tarion warranty fee

• Utility meter installation fees
  You can cap development levies during negotiations (e.g., max $10,000) to avoid surprises.

Some developers allow assignment (selling your unit before final closing), but often with conditions.

• You usually need written consent.

• There might be a fee ($3,000–$7,000).

• Some projects offer free assignment as an incentive.
  Ask for the assignment clause in your Agreement of Purchase and Sale.

You’ll receive a features and finishes sheet outlining what’s standard. Common inclusions are:

• Quartz countertops

• Stainless steel appliances

• Laminate or vinyl flooring

• Stacked washer/dryer
  However, upgrades (e.g., kitchen backsplash, pot lights, or hardwood) cost extra. Clarify what’s included to avoid unexpected upgrade charges.

Yes. The builder can make minor changes to layout or features, and delays are very common in pre-construction. Always read the Tarion Warranty Addendum — it protects your rights if there are delays or cancellations.

Sometimes, yes — this is called an assignment. Not all builders allow it, and there can be fees or restrictions. If you’re thinking of selling early for profit, make sure you ask if assignment is allowed and what the conditions are.

In Ontario, you have a 10-day cooling-off period after signing the agreement. You can cancel during this time with no penalty. Use this time to review everything with a lawyer.