Buying a pre-construction condo is different from resale—it involves unique steps that every buyer should know. Here’s a simplified breakdown of the journey.
From Sales Launch to Deposit
The process begins at the sales launch, where developers release prices, floor plans, and incentives. Early access often means better choices and pricing. Once you sign, you typically have a 10-day cooling-off period to review your contract with a lawyer or arrange financing. After that, your deposit is paid in installments (for example, 5% at signing, 5% in 90 days, and so on) until you’ve contributed about 15–20% before occupancy.
During the cooling-off period, buyers should carefully review important details such as assignment rights, closing cost caps, parking and locker arrangements, and potential development delays. Working with a real estate lawyer and a pre-construction expert ensures that you fully understand the agreement and builder obligations. Buyers often compare multiple layouts, views, and exposure options to maximize long-term value and resale potential.
Construction & Interim Occupancy
The construction phase usually lasts 2–5 years. During this time, you’ll receive project updates and may choose finishes for your unit. Once your condo is complete but before the building is officially registered, you can move in under interim occupancy. Instead of mortgage payments, you’ll pay occupancy fees covering interest, taxes, and maintenance.
Interim occupancy can last several months depending on how long it takes to finish the entire building and complete municipal approvals. Although occupancy fees do not reduce your mortgage balance, this period allows time to plan your move and prepare financially before final closing. Buyers are also invited to a Pre-Delivery Inspection (PDI), where you walkthrough the unit and note any deficiencies that must be fixed before completion.
Final Closing & Warranty
When the building is registered, final closing occurs—you take legal ownership, your mortgage begins, and closing costs are due. From this point forward, Tarion (or your province’s warranty program) protects you against defects and structural issues for up to seven years, giving you peace of mind in your new home.
At final closing, buyers should be prepared to pay legal fees, land transfer tax, development and education levies, and utility setup costs. Closing costs often range between 3–5% of the purchase price. Tarion warranty coverage includes one-year general defects, two-year mechanical and water protection, and seven-year major structural protection. This ensures that new homeowners receive support if any issues arise after moving in.
Why Buyers Choose Pre-Construction Condos
Pre-construction condos appeal to both homeowners and investors because they offer flexible payment schedules, modern building amenities, and potential long-term appreciation. Buyers can also benefit from energy-efficient construction and lower maintenance costs during the initial years. For investors, renting during interim occupancy can also provide income depending on builder rules and municipal regulations.
