Pre-construction guide
What is pre-construction?
Buying a brand-new home or condo from a builder before it is built, and what that really means.
Buying before it exists
A pre-construction purchase means signing an agreement of purchase and sale with a builder for a home or condo that hasn’t been built, or is still under construction. You choose from floor plans and finishes, pay a deposit in instalments, and close when the home is complete, often two to five years later.
Why buyers choose it
Time to save while deposits are paid gradually, a brand-new home with a Tarion warranty, the chance to choose finishes, and, in a rising market, the possibility of appreciation before you close. Many investors also buy pre-construction to rent out.
What to weigh up
You are committing to a price today for a home you will finance later, at future interest rates and appraised values. Construction delays are common, and closing costs on new homes differ from resale. The guides below explain each of these, and we walk every buyer through them before they sign.
General information only, reviewed October 2026. Confirm the details for your purchase with your lawyer.