What to know before buying a pre-construction home in Canada

Thinking about buying a pre-construction home in Canada? It can be an exciting opportunity to own a brand-new property, often at a lower initial price. But like any major purchase, there are important things to understand before signing the paperwork. Whether you're a first-time buyer or looking to invest, here's what you need to know before buying a pre-construction home.

 

What is a pre-construction home?

A pre-construction home is a property that you purchase before it’s built. You’re buying based on floor plans, models, and promises from the developer. These homes can include condos, townhouses, or detached houses. Buyers typically pay a deposit upfront and then wait months—or even years—for construction to finish.

Benefits of buying pre-construction

There are real advantages to buying a home that hasn’t been built yet:

• Customization: You often get to choose finishes, colors, and layouts.

• Modern features: New builds come with energy-efficient systems and smart home technology.

• Lower upfront costs: Pre-construction homes usually require a smaller deposit compared to buying resale.

• Appreciation: In a rising market, your home may gain value before it’s completed.

Key things to research before you buy

Not all pre-construction deals are the same. Here are some important factors to consider:

1. The developer's reputation
Do some digging into the builder. Look for online reviews, check past projects, and ask if they’ve delivered on time and as promised.

2. The timeline and potential delays
Pre-construction projects often take longer than expected. Ask for a realistic timeline and find out how delays are handled in your contract.

3. Total costs beyond the sticker price
The advertised price doesn’t include everything. You’ll likely pay for closing costs, legal fees, HST (for new homes), and development charges. Make sure to budget for these extras.

4. The 10-day cooling-off period
In provinces like British Columbia and Ontario, you usually have 10 days after signing to cancel the contract without penalty. Use this time to review the agreement with a real estate lawyer.

5. Financing and mortgage approval
Some banks won’t approve a mortgage until the home is nearly complete. Check with your lender to understand what you can get approved for now—and later.

6. Assignment clauses
Some contracts allow you to sell (or “assign”) your agreement before the home is finished. This can be useful if your plans change, but not all developers permit it.

Know your rights and protections

In Canada, new home buyers are protected under provincial warranty programs, such as Tarion in Ontario or BC Housing’s warranty in British Columbia. These programs often cover things like:

• Structural defects

• Plumbing and electrical issues

• Delayed closings

Ask your builder what warranty applies and what is (and isn’t) covered.

When should you move in?

Your move-in date will depend on when the building is completed and when occupancy is granted. Sometimes you can live in the home before it’s officially yours during an “interim occupancy” period. During this time, you might pay rent-like fees to the builder until the final closing.

If you're planning a move into your new pre-construction home, it’s smart to start planning early. Moving dates can change, and you want to be ready when you finally get the keys.

How Tingsapp can help with your move

Moving into a brand-new home is exciting-but it can also be stressful. Tingsapp makes your move easy, affordable, and reliable. With transparent pricing and trusted local movers, you can book your move in just a few taps.

Whether you’re moving into a downtown condo or a suburban townhouse, Tingsapp is here to help you settle in with confidence. We handle everything from large furniture to fragile items-so you can focus on enjoying your new home.

Final thoughts

Buying a pre-construction home in Canada can be a great investment, but it’s not without risks. Take time to research, understand your contract, and protect your finances. And when it’s time to move in, let Tingsapp handle the heavy lifting.