North York Pre-Construction Condos: Deposits, Tax and Your Rights

You buy a pre-construction condo from a builder before the building is finished. The purchase has its own rules. You have 10 calendar days to cancel. Your deposit must be held in trust and Tarion covers up to $20,000 of it. GST/HST applies to the price and several rebates can reduce it. Both land transfer taxes apply when you take title. Each rule below comes with its source, followed by assignment sales and the steps to closing.

All of this is general information. Confirm legal, tax and mortgage points with a lawyer, an accountant or a mortgage professional before you sign.

Builder purchase versus resale

On a resale you can walk through the unit and read the building’s financial records. On a new condo you have plans and a contract.

	Resale condo	Pre-construction condo
What you can see	The finished unit and building	Floor plans, a disclosure statement and the purchase agreement
Main documents	The status certificate, which includes the budget, the last audited statements and a reserve fund statement	The disclosure statement, Ontario’s Residential Condominium Buyers’ Guide and a Condominium Information Sheet
Right to cancel	The 10-day right described below is for purchases from a developer	10 calendar days

The Home Construction Regulatory Authority (HCRA) says all new home builders and sellers must be licensed. It keeps the Ontario Builder Directory, where you can look a builder up.

Resale prices give you something to hold a builder’s price list against. TRREB’s Market Watch for August 2026 shows these resale condo apartment figures for three districts along the Yonge and Sheppard subway lines.

TRREB district	Sales	Average price	Median price
Toronto C07, which includes Willowdale West and Lansing-Westgate	25	$581,340	$560,000
Toronto C14: Willowdale East and Newtonbrook East	52	$555,815	$532,500
Toronto C15, which includes Bayview Village and Henry Farm	52	$619,237	$561,950

One month in one district is a small sample and TRREB publishes no North York total. Our North York condo prices page carries the longer view. We have not researched builder pricing, so we give no pre-construction prices and name no projects or developers. To compare the two routes side by side, read pre-construction or resale in North York.

The 10-day cooling-off period

The Condominium Authority of Ontario (CAO) says a buyer of a pre-construction condo from a developer has a 10-day cooling-off period in which to rescind the agreement of purchase and sale. The HCRA describes it as 10 calendar days to cancel with no penalty and a full refund of the deposit.

• The agreement is not binding until you have received both the disclosure statement and Ontario’s Residential Condominium Buyers’ Guide from the builder.
• The builder must also give you a Condominium Information Sheet with the purchase agreement.
• A further right to rescind arises if there is a material change to the disclosure statement.

Spend the 10 days on a legal review and book the lawyer before you visit a sales office. The pages we relied on describe this right for purchases from a developer. Nothing on them extends it to a resale purchase. Ask your lawyer how the days are counted in your case.

Deposits and Tarion deposit protection

Tarion states that builders of condominiums are required by the Condominium Act to hold deposits in trust. If a deposit was not placed in trust or is not returned, Tarion’s deposit protection for a condominium unit is up to $20,000. The CAO gives the same figure.

• Payments for upgrades and extras are covered within that $20,000 limit, not in addition to it.
• Money paid to reserve or hold a unit before a purchase agreement is signed is not protected.

Your purchase agreement sets the size and timing of your deposits. Tarion’s cover for a condo unit stops at $20,000, so ask your lawyer where the deposit will be held and what protects any amount above that figure.

HST and the rebates that apply

GST/HST applies to new homes. In Ontario the HST has a 5% federal part and an 8% provincial part. Ask the builder in writing whether the price in the agreement includes HST and who receives each rebate. The programs below come with the limits and dates their sources give.

The two standing rebates

The Canada Revenue Agency’s guide RC4028 describes them.

• Federal GST/HST new housing rebate. 36% of the federal part of the HST to a maximum of $6,300. It is paid in full on homes up to $350,000 and phases out to nil at $450,000.
• Ontario new housing rebate. 75% of the provincial part of the HST to a maximum of $24,000, with no price ceiling. The home must be the primary place of residence of the buyer or a relation. The claim must be made within two years.

The federal first-time home buyers’ GST/HST rebate

This rebate is now law. Finance Canada’s release states that Bill C-4, the Making Life More Affordable for Canadians Act, received Royal Assent on March 12, 2026. It removes the GST for first-time buyers on new homes up to $1 million and reduces it between $1 million and $1.5 million, a saving of up to $50,000. It generally applies to agreements of purchase and sale entered into on or after March 20, 2025 and before 2031.

The CRA lists these conditions. The buyer is 18 or older and a Canadian citizen or permanent resident. The buyer has not lived in a home owned by them or by their spouse or common-law partner in the calendar year or the previous four calendar years. Construction begins before 2031 and is substantially completed before 2036.

Ontario’s own rebates

• Ontario first-time home buyers’ rebate. The CRA says it provides up to $80,000 of the provincial part of the HST and follows the eligibility conditions of the federal first-time buyer rebate.
• Ontario Enhanced New Housing Rebate. The CRA describes it as a temporary rebate that, together with the Ontario new housing rebate, gives combined relief of up to $80,000 of the 8% provincial part of the HST. It covers a new or substantially renovated home valued up to $1,850,000 where the agreement with the builder is entered into between April 1, 2026 and March 31, 2027. It is open to buyers who are not first-time buyers.
• Ontario New Home Affordability Payment. Ontario describes relief on the 5% federal part of the HST: up to $50,000 on homes up to $1 million, a flat $50,000 from $1 million to $1.5 million, a partial amount up to $1.85 million and nothing above that. A recipient must first be eligible for and receive the enhanced rebate. It is applied for through the CRA with no separate Ontario application.

Ontario’s 2026 Budget describes the enhanced rebate as running from April 1, 2026 to March 31, 2027, with construction to begin by December 31, 2028 and substantial completion on or before December 31, 2031. It refers to up to $130,000 in combined federal and provincial HST relief.

Check the legal status

The Ontario Budget page words the enhanced relief as something the government is “proposing”. The CRA and ontario.ca program pages describe the same programs as operating. We did not open the legislation or regulation behind them. We also could not confirm whether a unit bought to rent out qualifies for the Ontario relief. Treat the Ontario amounts as unconfirmed and ask your lawyer or accountant to check the current terms on the CRA page the day you sign.

Land transfer tax at closing

North York is in the City of Toronto, so you pay the Ontario land transfer tax and the Toronto municipal land transfer tax. On a home priced up to $2,000,000 the two use the same brackets.

Portion of the price	Ontario rate	Toronto rate
Up to $55,000	0.5%	0.5%
$55,000.01 to $250,000	1.0%	1.0%
$250,000.01 to $400,000	1.5%	1.5%
$400,000.01 to $2,000,000	2.0%	2.0%

Higher rates apply above $2,000,000. The City also charges an administration fee of $102.56 plus HST per transaction.

First-time buyers can get part of this back. Ontario refunds up to $4,000, so a qualifying buyer pays no Ontario tax on the first $368,000. Toronto rebates up to $4,475 and its page says the rebate covers newly constructed as well as resale homes. Both require that you are at least 18, are a Canadian citizen or permanent resident, have never owned a home anywhere in the world and move in as a principal residence within nine months. Our land transfer tax calculator works out both taxes. Ask your lawyer for the exact amount and when it falls due on your purchase.

Mortgage rules for new builds

Finance Canada changed two insured mortgage rules effective December 15, 2024.

• The price cap for insured mortgages rose from $1 million to $1.5 million.
• 30-year amortizations on insured mortgages were opened to all first-time buyers and to all buyers of new builds.

The federal minimum down payment is 5% of the price up to $500,000. For homes from $500,000 to under $1.5 million, it is 5% of the first $500,000 plus 10% of the portion above. At $1.5 million or more you need 20%. Under 20% down, you typically need mortgage loan insurance.

A pre-construction purchase can close long after you sign. Ask a mortgage professional how long an approval lasts, what happens if rates or your income change before closing and how the builder’s deposits count toward your down payment.

Interim occupancy before the final closing

Many new condo purchases include a stretch where you have the keys but do not yet hold title. You pay the builder an occupancy fee for that time. The CAO says the fee cannot exceed the total of monthly interest on the unpaid balance of the purchase price, estimated monthly municipal taxes for the unit and projected monthly common expenses.

Our post on closing costs for a North York condo lists the other items to budget for.

Renting the unit out

If you plan to lease a new unit, one Ontario rule matters. Ontario exempts new buildings first occupied for residential purposes after November 15, 2018 from rent control. A new condo first occupied after that date falls outside the annual guideline, which is 2.1% for 2026 and 1.9% for 2027. An exempt unit still has two rules to follow. Rent can be raised only once 12 months have passed since the last increase or the start of the tenancy. The landlord must give at least 90 days’ written notice.

Our North York condo investment guide covers rent rules, short-term rental limits and the Vacant Home Tax. A lawyer or an accountant can confirm how they apply to you.

Transit claims in the sales brochure

Sales material leans on transit. Here is the status each agency states today.

Yonge North Subway Extension. Metrolinx says the project extends Line 1 north from Finch Station to Vaughan, Markham and Richmond Hill, about 8 kilometres with five stations: Steeles, Clark, Royal Orchard, Bridge and High Tech. The milestones on its project page are a tunnelling contract awarded in July 2025, a request for qualifications for the stations, rail and systems contract in October 2025, a request for proposals for that contract in May 2026 and excavation of the tunnel launch shaft completed in July 2026. Metrolinx gives no opening date. It lists no station between Finch and Steeles.

Sheppard Subway Extension. Metrolinx places this at the Initial Business Case, the first stage of its planning process. It is studying options and seeking community input to extend rapid transit along Sheppard Avenue both east and west. Its page states no route decision, no funding, no construction date and no opening date.

Lines already open. The TTC states that Line 5 Eglinton is in service over 19 kilometres from Mount Dennis Station to Kennedy Station. Line 6 Finch West is open with 18 stations over 11 kilometres from Finch West Station to Humber College Station.

Read any transit claim against the agency’s own page. We make no statement about what a transit line does to condo values.

Assignment sales

In an assignment sale you sell your purchase agreement before the final closing. The original buyer, the assignor, transfers the agreement with the builder to a new buyer, the assignee, who then completes the purchase.

HST on an assignment

The CRA’s info sheet GI-120 states that effective May 7, 2022 all assignment sales of newly constructed or substantially renovated residential housing are taxable for GST/HST purposes. CRA Notice 323 adds two points.

• The assignor generally remains responsible for collecting the GST/HST and remitting it.
• The amount that repays a deposit the assignor paid to the builder is excluded from the taxable amount where the assignment agreement indicates in writing that part of the price is a reimbursement of that deposit.

On the new housing rebate, GI-120 allows only one rebate application per home. The assignee may qualify if they meet the conditions.

Consent, fees and clauses

Each purchase agreement sets whether the builder permits an assignment, what fee it charges and what conditions it attaches. We found no primary source that sets a general right to assign. Both sides of an assignment should have a lawyer review the original agreement and the assignment agreement before signing. Ask an accountant how the HST applies to your assignment. Ask the lawyer what cancellation rights an assignee has, because the 10-day pages cited above describe purchases from a developer.

Where new condo searches start

Searches for new condos in North York gather around a few intersections. Each has a neighbourhood guide with the stations, housing stock and current resale listings.

• Yonge and Sheppard, around Sheppard-Yonge Station where Line 1 meets Line 4.
• Yonge and Finch, around Finch Station, a terminus of Line 1.
• Bayview Village, which includes Bayview, Bessarion and Leslie stations on Line 4.
• Don Mills and Sheppard, around Don Mills Station at the east end of Line 4.
• Downsview Park, where Downsview Park Station connects to the GO Barrie line.

For finished units, see condo apartments for sale or condo townhouses for sale. Our condo buying guide covers the resale process.

Step by step, from budget to closing

1. Set the budget with a mortgage professional. Cover the deposits, both land transfer taxes and the HST after rebates.
2. Check the builder. Look up the licence in the HCRA’s Ontario Builder Directory.
3. Book a lawyer before you sign. The 10 calendar days go fast.
4. Collect the documents. You need the disclosure statement, Ontario’s Residential Condominium Buyers’ Guide and the Condominium Information Sheet.
5. Review during the cooling-off period. Have the lawyer read the deposit, occupancy and assignment clauses.
6. Confirm the rebates. Ask an accountant which ones you qualify for.
7. Pay deposits as the agreement sets out.
8. Plan for interim occupancy. Budget for the occupancy fee until the final closing.
9. Close. Your lawyer registers the transfer and settles the land transfer taxes and remaining costs.

Ask us anything about North York condos and we can book a showing. Contact us with your questions.