Graywood Developments

Buyers typically register their interest, receive early access to pricing and plans, then sign an agreement of purchase and sale and pay deposits in installments. Most buyers of new condos move in through interim occupancy, paying occupancy fees before the building is registered, and then complete final closing once title transfers.

In Ontario, new and pre-construction condos carry a 10-day cooling-off (rescission) period under the Condominium Act. This does not apply to freehold houses, so it matters which project type you are buying. Have a real estate lawyer review the agreement within that window.

Pre-construction purchases typically let a buyer secure a unit with a staged deposit schedule and close later, once the building is complete. That spreads out the capital commitment, but it also means the price is fixed well before you know what the market will look like at closing. No outcome, including appreciation or rental income, is guaranteed.

Before buying, compare each project's location, home type and likely rental demand. Look at how much similar new supply is nearby, the deposit schedule, projected closing dates, and expected carrying costs such as maintenance fees and taxes. Condos, a townhome and a single-family home can behave very differently as investments, so evaluate each one on its own terms.

Pre-construction usually requires a larger deposit than a resale purchase, paid in stages over the build period rather than all at once. Confirm the exact schedule for the project you like, and make sure you can also meet the closing costs and mortgage qualification when the home is finished.

Ontario first-time buyers may be eligible for programs such as the federal First-Time Home Buyers' Tax Credit and the Home Buyers' Plan, and some land transfer tax rebates apply to new purchases. Eligibility rules change, so verify them with a lawyer or mortgage professional. Registering early can give you access to floor plans and pricing before wider release, when choice is greatest.