Buying a New Build in Ontario: From Deposit to Closing
There is a moment, usually somewhere between choosing a lot and picking out cabinet colours, when buying a new build in Ontario starts to feel real. For many people looking at Sol Haven in Grand Bend, it arrives while imagining slower mornings and sunsets over Lake Huron from a home that is entirely new. It is also the moment many people realize the process works differently from buying a resale home. There are deposits paid in stages, a provincial warranty program, tax rebates that depend on dates, and an inspection before you ever get the keys.
Whether you are planning a move to Grand Bend or building elsewhere in Ontario, none of it is complicated once you can see the whole path. This guide walks through each stage in order, from signing your agreement to the day you move in, and what happens in the years after. Every builder handles some details a little differently, so treat this as a map and confirm the specifics with your builder and your real estate lawyer.
Step 1: Confirm Your Builder is Licensed buying a new build in Ontario
In Ontario, anyone who builds or sells a new home must be licensed by the Home Construction Regulatory Authority (HCRA). The HCRA recommends making a licence check your very first step, using its free Ontario Builder Directory.
The directory shows a builder's licence status, how many homes they have built, warranty claim history from Tarion, and any regulatory action taken against them. If a builder does not appear in the directory, the HCRA treats that as a red flag. You can look up each of Sol Haven's builders, Hazzard Homes, Magnus Homes and Melchers Developments, the same way.
Step 2: Review the Agreement of Purchase and Sale
Your agreement of purchase and sale (often called the APS) sets out the price, the deposit schedule, what is included in the home, and how HST is handled. For a new freehold home, it also includes a Tarion addendum with a Statement of Critical Dates, which lists your tentative and firm closing dates and the rules for changing them.
It is a good idea to have a real estate lawyer review the agreement before you sign, or to make your offer conditional on that review. Your lawyer can explain the closing adjustments, any conditions, and how rebates are treated in the price.
Step 3: Pay Your Deposit and Notify Tarion Within 45 Days
New build deposits are usually paid in installments set out in your agreement, rather than as one lump sum. Tarion, Ontario's new home warranty provider, protects those deposits up to set limits if your builder cannot deliver the home and does not return your money.
There is one step buyers of new freehold homes should not miss. Since January 1, 2026, only buyers who notify Tarion of their purchase within 45 days of signing qualify for the maximum deposit coverage. For those who give timely notice, that coverage generally reaches up to $100,000. Late registrants are still covered, but their claims share a $10 million annual limit with all other late registrants.
Registration is done online through Tarion's portal and asks for basic details such as the builder's name, the property address and your deposit amounts. Don't assume your builder has registered for you.
Step 4: Understand How HST Works On A New Home
Most resale homes are not charged HST, but newly built homes are. In Ontario that means 13% HST: 5% federal and 8% provincial. Several rebates reduce that cost, and 2026 brought the most significant changes in years.
The Ontario enhanced HST rebate (all eligible buyers). For agreements signed with a builder between April 1, 2026, and March 31, 2027, eligible buyers can receive a rebate of the full 13% HST on new homes valued up to $1 million, to a maximum of $130,000. The home must be used as a primary residence or a long-term rental, and it must meet construction deadlines. For most new homes, construction must begin by December 31, 2028, and be substantially complete by December 31, 2031.
New home value | Maximum combined HST rebate (enhanced program) |
Up to $1 million | Full 13% HST, up to $130,000 |
$1 million to $1.5 million | $130,000 |
$1.5 million to $1.85 million | Declines gradually to $24,000 |
Over $1.85 million | $24,000 (standard Ontario new housing rebate) |
This program became law when Ontario's Bill 114 received Royal Assent on May 12, 2026, and the federal government is cost-sharing the 5% portion.
First-time buyer rebates. Separately, the federal First-Time Home Buyers' GST/HST rebate became law on March 12, 2026. It removes the 5% federal portion on new homes up to $1 million, with a partial rebate up to $1.5 million. It applies to agreements signed from March 20, 2025, onward. Ontario's matching first-time buyer rebate on the 8% provincial portion is also now available. First-time buyers who also qualify for the enhanced rebate can combine them, although provincial relief remains capped at $80,000.
How the rebate shows up in your price. Many builders quote prices with HST included and the rebates assigned to them, so the savings are built into the price you pay. The Ontario rules allow buyers to assign the rebate to their builder. Ask your builder how they handle it, and keep in mind that upgrades added to your agreement become part of the purchase price.
Step 5: Make Your Design Selections
After signing, most builders book one or more design appointments to choose finishes such as flooring, cabinetry, countertops and exterior colours. This is where a new build starts to feel like yours. Selections usually have deadlines tied to the construction schedule, so it helps to arrive with a sense of priorities and a budget for upgrades. At Sol Haven, exterior choices such as colours and materials are part of what gives each home its own character within a cohesive streetscape.
Step 6: Construction and Your Critical Dates
While your home is being built, your Statement of Critical Dates is the document to keep handy. Your builder sets tentative closing dates and, later, a firm closing date. If the firm date is missed without an allowed exception, such as an unavoidable delay or a mutual agreement, you are entitled to delayed closing compensation.
That compensation includes $150 per day for living expenses, up to a total of $7,500. If the home still is not complete by the outside closing date, you have 30 days to terminate the agreement. Claims are submitted through Tarion's online MyHome portal.
Step 7: Closing Versus Occupancy
These two terms are often used interchangeably, but they mean different things depending on the type of home.
Freehold homes (detached, semi-detached and freehold townhomes): closing and taking possession happen on the same day. You receive title and keys together.
New condominium units: buyers often move in during an interim occupancy period before the building is registered. During that time they pay a monthly occupancy fee instead of a mortgage, and final closing happens later.
If you are buying a freehold home, you can expect one closing date rather than two stages. That is the path at Sol Haven, where single-family homes and townhomes alike come with no condo fees.
Step 8: The Pre-Delivery Inspection (PDI)
Shortly before closing, your builder is required to walk through the home with you, or with someone you designate, in what is called a pre-delivery inspection, or PDI. Together you note anything damaged, incomplete or missing on the PDI form.
Take your time, bring the form's checklist and take photos. Items noted at the PDI that are not addressed can be included in your first warranty form to Tarion.
Step 9: Closing Day
On closing day, your lawyer handles the transfer of funds and title, registers the deed and pays land transfer tax. Closing adjustments, such as utility connections or the Tarion enrolment fee, are settled at this stage, so ask your builder early for a list of what to expect.
You will also receive a Tarion Warranty Certificate. Registering for Tarion's MyHome portal right after you take possession makes the warranty steps ahead much easier.
After You Move In: Your Tarion Warranty Timeline
Your new home comes with statutory warranties that start on the day you take possession.
Warranty | What it covers |
One year | Defects in work and materials, and Ontario Building Code violations |
Two years | Water penetration, and defects in electrical, plumbing and heating delivery systems |
Seven years | Major structural defects |
To use the first-year coverage, submit a 30-Day Form within your first 30 days and a Year-End Form during the last 30 days of your first year. A Second-Year Form covers items under the two-year warranty. Submitting through MyHome keeps a clear record for you and your builder.
Your Deposit-To-Closing Checklist
Confirm the builder's license in the Ontario Builder Directory
Have a real estate lawyer review your agreement
Pay your first deposit and keep receipts
Notify Tarion within 45 days of signing
Ask your builder how HST rebates are applied to your price
Book and complete your design selections
Keep your Statement of Critical Dates on file
Attend your PDI and document everything
Close with your lawyer and register for MyHome
Submit your 30-Day Form
An Important Note On Timing
The Ontario enhanced HST rebate is temporary, and only agreements signed by March 31, 2027, qualify. If a new build is part of your plans, it is worth asking your builder and lawyer how the dates line up for you.
At Sol Haven, every home is built by an established, award-winning builder—Melchers Developments, Hazard Homes, and Magnus Homes—with no condo fees on any home in the community. If you are starting to picture life in Grand Bend, the next step is simply to explore the community and see what's available.
This article is for general information only and is not legal or tax advice. Rebate eligibility depends on your circumstances; please confirm details with your builder, a real estate lawyer, or the Canada Revenue Agency.
FAQ
Do I pay HST on a new build in Ontario?
Yes. New homes are subject to 13% HST, while most resale homes are not. Rebates can reduce or remove it; for agreements signed between April 1, 2026, and March 31, 2027, eligible buyers can receive up to $130,000 back on a qualifying new home.
Do I have to be a first-time buyer to get the 2026 HST rebate?
No. Ontario's enhanced rebate is open to eligible buyers who will live in the home or rent it out long term. First-time buyers may also qualify for separate federal and Ontario first-time buyer rebates.
What happens if I miss Tarion's 45-day notice?
Your deposit is still covered, but you lose access to the maximum coverage. Claims from late registrants share a $10 million annual limit, so it is best to register online as soon as you sign.
What is a pre-delivery inspection (PDI)?
It is a walkthrough with your builder shortly before closing to record anything damaged, incomplete or missing. Items noted at the PDI that are not fixed can be added to your first Tarion warranty form.
What is the difference between closing and occupancy?
For a freehold home, they happen on the same day: you receive title and keys together. Condominium buyers often move in first during an interim occupancy period and close later, once the building is registered.
What if my builder delays my closing?
If the firm closing date in your Statement of Critical Dates is missed without an allowed exception, you may be entitled to up to $7,500 in delayed closing compensation, including $150 per day for living expenses.
How long is a new home warranty in Ontario?
Coverage runs in three tiers: one year for workmanship and materials, two years for water penetration and major systems, and seven years for major structural defects.
References
Bennett Jones LLP. (2026, April 23). New Tarion rule: Why purchasers of new homes must register within 45 days. https://www.bennettjones.com/Insights/Blogs/2026/04/New-Tarion-Rule-Why-Purchasers-of-New-Homes-Must-Register-Within-45-Days
Bussmann, M., & Lupo, R. (2026). Ontario expands scope of buyers entitled to HST relief on new homes. Gowling WLG. https://gowlingwlg.com/en/insights-resources/articles/2026/ontario-expands-scope-of-buyers-entitled-to-hst-relief-on-new-homes
Canada Revenue Agency. (n.d.). First-time home buyers' (FTHB) GST/HST rebate. Government of Canada. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate
Home Construction Regulatory Authority. (2022, March 15). The Ontario Builder Directory: Step 1 in choosing a new home builder. https://www.hcraontario.ca/blog/2022/03/15/the-obd-step-1-in-choosing-a-new-home-builder/
MNP. (2026). First-time home buyers' GST rebate receives Royal Assent. https://www.mnp.ca/en/insights/directory/first-time-home-buyers-gst-rebate-receives-royal-assent
Mondaq. (n.d.). Levelling the playing field: New Tarion rule helps curb illegal home sales. https://www.mondaq.com/canada/real-estate/1718096/levelling-the-playing-field-new-tarion-rule-helps-curb-illegal-home-sales
New-home HST rebates in Ontario: What's now in force, and what's still coming. (2026). SV Law. https://svlaw.ca/news-and-insights/new-home-hst-rebates-in-ontario-whats-now-in-force-and-whats-still-coming/
Ontario Construction News. (2026). Ontario introduces legislation to implement HST relief on new homes, projecting $2.7 billion boost. https://ontarioconstructionnews.com/ontario-introduces-legislation-to-implement-hst-relief-on-new-homes-projecting-2-7-billion-boost
Ontario Ministry of Finance. (2026a). 2026 Ontario budget: Chapter 1, section B. King's Printer for Ontario. https://budget.ontario.ca/2026/chapter-1b-costs.html
Ontario Ministry of Finance. (2026b, March 26). Backgrounder: Eligibility for Ontario's expanded HST relief on new homes. King's Printer for Ontario. https://budget.ontario.ca/2026/hst.html
Ottawa Business Journal. (n.d.). Tarion changes for new home purchasers: Transaction notice requirement. https://obj.ca/?p=184236
Sorbara Law. (2026a). The new regulatory framework for the Ontario enhanced HST rebate. https://www.sorbaralaw.com/resources/knowledge-centre/publication/the-new-regulatory-framework-for-the-ontario-enhanced-hst-rebate
Sorbara Law. (2026b). Ontario first time home buyers' HST rebate now available. https://www.sorbaralaw.com/resources/knowledge-centre/publication/ontario-first-time-home-buyers-hst-rebate-now-available
Tarion Warranty Corporation. (n.d.-a). Closing dates & delayed closing: Freehold. https://www.tarion.com/homeowners/pre-possession-coverage-and-claims/closing-dates-delayed-closing-freehold
Tarion Warranty Corporation. (n.d.-b). [Notice of purchase and deposit coverage for new freehold homes]. https://www.tarion.com/node/66121
Tarion Warranty Corporation. (2024). Warranty information for new freehold homes [PDF]. https://tarion.com/sites/default/files/Warranty%20Information%20for%20Freehold%20Homes%20-%20effective%20May%201%202024.pdf
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