Eyeing a brand-new condo near Harding Boulevard in Richmond Hill? Buying pre-construction can be a smart move, but the process, timelines, and costs work differently than resale. With the right plan, you can protect your deposit, manage risk, and set clear expectations from day one. In this guide, you’ll learn the key steps, protections, and local checks to make a confident decision. Let’s dive in.
How pre-construction sales work
What you actually sign
When you buy a new condo in Ontario, the Agreement of Purchase and Sale (APS) should come with a Disclosure Statement, the Tarion warranty information sheet and Addendum, and the province’s Condominium Buyers’ Guide. Until you receive those documents and your 10-day cooling-off period ends, your APS is not firm. The guide explains what to look for and how the process works for buyers of new units. You can review the full details in the province’s Condominium Buyers’ Guide.
Your 10-day cooling-off right
You have a statutory 10-day rescission period for a new condo purchase. You can cancel for any reason within that window and receive your deposit back with prescribed interest, without penalty. If there is a material change to the Disclosure Statement, another 10-day window can apply. Use this time to have your lawyer review the contract and all attachments.
Deposits and protections
How much and when
There is no single standard deposit schedule, but in the GTA you commonly see staged deposits totaling about 10 to 20 percent of the purchase price. Schedules often start with a small amount on signing, then step up to 5 percent within 10 to 30 days, with further 5 percent installments at set dates or construction milestones. Always confirm your exact schedule and dates in your APS. For typical patterns, see this overview of pre-construction condo deposits.
Where your money sits
In Ontario, developers must hold condo deposits in trust. If a project is terminated, deposits must be returned according to law, and Tarion provides a second layer of deposit protection if a builder does not refund properly. Tarion’s deposit protection for condo purchasers is up to 20,000 dollars. You should also confirm the project is enrolled with Tarion. Learn more about deposit protection and enrollment from Tarion and the statute’s trust requirements.
Occupancy, closing, and fees
Interim occupancy basics
New condo projects often have two phases. First is interim occupancy, when you may receive keys before the building is registered. Title transfers at final closing after registration. During interim occupancy, you typically pay an occupancy fee that does not go toward your purchase price. By law, that fee is capped as the total of: interest on the unpaid balance, estimated municipal taxes, and projected condo fees. Review your Tarion Addendum’s Statement of Critical Dates to budget for this period. The Condominium Buyers’ Guide explains how these pieces fit together.
Delays and compensation
The Tarion Addendum sets tentative, firm, and outside occupancy dates and outlines your rights if occupancy is delayed. If delays go beyond what the addendum allows, you may have termination or compensation options. Keep all notices and compare them to the Statement of Critical Dates in your addendum. The Buyers’ Guide covers how these timelines work.
HST and closing costs
New units are subject to HST. If you will live in the unit, you may qualify for the federal GST/HST New Housing Rebate, and Ontario has its own rules that often work with it. Ask whether HST is included in the purchase price or paid at closing, and whether the builder will net the rebate on your behalf. Review the GST/HST New Housing Rebate and confirm your situation with a tax professional.
Assignments and financing
What an assignment means
An assignment is the sale of your rights under the APS before final closing. Most builders require written consent, may charge administration or consent fees, and can refuse requests. Some require replacement deposit cheques from the new buyer. Assignment is not automatic, so read the clause carefully and discuss it with your lawyer. The Buyers’ Guide explains how assignments are handled.
Taxes and lending on assignments
Tax treatment on assignment profits can be complex. Depending on the facts, the Canada Revenue Agency may treat proceeds as business income or capital gains, and HST can be a factor in certain structures. Lenders may also treat assignment purchases differently, so you will want financing that carries you through interim occupancy and to final closing. For HST context, review the New Housing Rebate and speak with a tax advisor and mortgage specialist.
Pre-construction vs resale in Harding
Pre-construction strengths:
- Brand-new layouts and finishes with the chance to select early design choices.
- Potential builder incentives such as preferred parking or rate-coupon offers.
- Sometimes lower effective pricing at early launch compared to later phases.
Pre-construction tradeoffs:
- Higher and staged deposits, plus possible interim occupancy fees.
- Construction timing risk and limited ability to inspect until near occupancy.
- Uncertainty around final condo budgets in the first year.
Resale strengths:
- Immediate inspection and a known status certificate with operating history.
- No construction delay risk and no interim occupancy period.
- Immediate mortgage closing without paying occupancy fees.
Your choice usually comes down to timing, your tolerance for construction timelines, and cash flow to handle deposits and potential occupancy fees. The Buyers’ Guide offers a helpful framework for comparing options.
Local checks for Harding buyers
Builder and Tarion
Confirm the builder is registered with Tarion and that your unit is enrolled in the warranty program. Ask for the Tarion enrollment number, and verify where your deposits are held in trust, ideally in a lawyer’s trust account. Tarion explains deposit protection and enrollment here: Tarion coverage before you close.
Planning along the Yonge corridor
The Yonge Street corridor, including the area near Harding Boulevard, has been a focus of intensification and downtown planning discussions. New projects can change local traffic patterns, transit, and amenities. Review municipal planning notices for your project block to understand timing and phasing. A useful starting point is this municipal planning reference discussing Yonge corridor redevelopment context.
Contract items to flag
Ask your lawyer to review the Statement of Critical Dates, any substitution or size-change clauses, assignment terms and fees, how deposits are routed, and how occupancy and closing will work. The Condominium Buyers’ Guide highlights these contract red flags and urges buyers to complete lawyer review during the cooling-off window. See the guide for details.
Your 10-day action plan
During the cooling-off window, work through this checklist:
- Confirm you have the signed APS, Disclosure Statement, Tarion Addendum and warranty information sheet, and the provincial Condominium Buyers’ Guide. If any are missing, your deal is not yet firm.
- Verify Tarion enrollment for the project and get the per-unit enrollment number if available. Confirm the exact deposit schedule and where deposits are held in trust.
- Review the Statement of Critical Dates and map tentative, firm, and outside occupancy dates.
- Read the assignment clause and note consent rules, fees, and any replacement deposit requirements.
- Budget for staged deposits of about 10 to 20 percent, plus closing costs, potential interim occupancy fees, and HST handling. Cross-check with this deposit overview.
- Obtain a mortgage pre-approval and ask about a rate-hold. Many lenders offer rate holds in the 90 to 150 day range, which may be helpful closer to closing. Learn about rate locks here: mortgage rate lock guide.
- Speak with a real estate lawyer and a tax advisor before your 10 days expire.
PDI and warranty after construction
Before final closing, you will complete a pre-delivery inspection (PDI) using a checklist. Document any deficiencies and keep copies. Tarion provides one-, two-, and seven-year warranty windows depending on the issue, so calendar your deadlines and submit claims within the timelines. Review coverage and process here: Tarion new home warranty.
Next steps
If you are comparing pre-construction and resale in Harding, a clear plan and early due diligence will set you up for success. Confirm deposit trust details, get the Tarion enrollment number and Statement of Critical Dates, secure a mortgage pre-approval with a rate hold if possible, and consult your lawyer and tax advisor during the cooling-off window. If you want local guidance on projects along Yonge and throughout Richmond Hill, connect with a neighborhood-focused brokerage that handles the details from offer to keys. For tailored advice and representation, reach out to Kevin Lin Realty.
FAQs
How much deposit do Harding pre-construction condos usually require?
- In the GTA, deposit schedules commonly total 10 to 20 percent of the purchase price, paid in stages. Confirm exact dates and amounts in your APS. See a deposit overview.
Is my pre-construction condo deposit protected in Ontario?
- Yes. Condo deposits must be held in trust. If a builder does not return funds when required, Tarion provides deposit protection up to 20,000 dollars. Review the trust rules and Tarion coverage.
When do I own the unit if there is interim occupancy?
- Title transfers at final closing after the condo is registered. Until then, you may pay a capped occupancy fee during interim occupancy. Read your Tarion Addendum’s Statement of Critical Dates in the Buyers’ Guide.
Can I assign my Harding pre-construction purchase before closing?
- Possibly. Many APS forms require the builder’s written consent and may include assignment fees or conditions. Review the assignment clause with your lawyer and consider tax implications. See the Buyers’ Guide for context.
