Pre-Construction & New Build Glossary (Ontario)

Buying a new build comes with its own vocabulary: occupancy dates, the Tarion Addendum, development charges, assignments and more. This glossary explains the pre-construction and new home terms Ontario buyers run into most, in plain English, with 2026 rules where they apply.

Tap a letter to jump to it. Each term has its own link, so you can share a definition directly.

A

Agreement of Purchase and Sale (APS)#: The contract between you and the builder that sets the price, deposit schedule, closing or occupancy dates, included features and adjustments. On a new home in Ontario it must include the Tarion Addendum.
Anti-flipping rule#: A federal tax rule in force since January 1, 2023. Profit from selling a home, or the right to buy one (such as an assignment), held for less than 365 days is taxed as business income unless a life-event exemption applies.
Appraisal gap#: The difference between your purchase price and a lower appraised value at closing. Lenders lend on the lower figure, so the buyer covers the gap in cash.
Assignment#: Selling your pre-construction contract to another buyer before closing. The buyer (assignee) takes over your rights and obligations. It usually requires the builder’s consent.
Assignment fee#: A fee the builder charges to approve an assignment. It is set by your agreement and is subject to HST.

B

Bulk sale#: A sale of many units in one deal, usually to an investor or rental operator at a discount. Common in the 2025–2026 GTA condo market.

C

Capped closing costs#: A clause or incentive that limits how much the builder can charge in closing adjustments, such as development charge increases and utility connections.
Closing date#: The day you pay the balance, take title and (for freehold homes) get the keys. New homes have tentative, firm and outside closing dates set in the Statement of Critical Dates.
Common elements#: The parts of a condominium that owners share, such as hallways, lobbies, amenities, the roof and the building structure.
Common expenses (maintenance fees)#: The monthly fee condo owners pay to run the building and fund the reserve. The first-year budget is in the disclosure statement.
Condo Authority of Ontario (CAO)#: The provincial body that provides information to condo owners and buyers, publishes the Condo Guide new condo buyers must receive, and runs the Condo Authority Tribunal.
Cooling-off period#: For new condos bought from the builder, a 10-day period under section 73 of the Condominium Act to cancel the agreement and get your deposit back. Freehold homes have no statutory cooling-off period.

D

Declarant#: The developer that registers a condominium’s declaration. On a new condo, it is the builder you buy from.
Declaration#: The condo’s founding legal document. It sets out unit boundaries, common elements, each unit’s share of common expenses, and use restrictions.
Delayed closing compensation#: Compensation under Tarion’s delayed closing and occupancy warranty when a builder misses dates or fails to give proper notice: $150 a day for living expenses plus receipted costs, up to $7,500.
Deposit protection#: Tarion’s protection of your deposit if the builder fails to deliver. For freehold homes: up to $60,000 on homes at $600,000 or less, or 10% of the price to $100,000 above that. For condos: deposits held in trust, with Tarion coverage up to $20,000.
Deposit structure#: The schedule of deposit payments before closing, for example 5% on signing and 5% in 90 days. Extended deposit structures spread payments over a longer time.
Development charges (DCs)#: Fees municipalities charge builders to pay for growth-related infrastructure. Increases after you sign can be passed to you as a closing adjustment unless capped. Bill 17 (2025) deferred DCs to occupancy, and a 2026 program funds cuts of up to 50% in municipalities that opt in.
Disclosure statement#: A document the builder must give new condo buyers, describing the project, amenities, first-year budget, rules and other key facts. Your 10-day cooling-off period runs from receiving it.

E

Early termination conditions#: Conditions in the Tarion Addendum that let a builder cancel the agreement, such as failing to get approvals or financing by a set date. If triggered, your deposit is returned with interest.
Education development charges (EDCs)#: Charges school boards levy on new development. Like development charges, increases can be passed on at closing unless capped.

F

Final closing#: For a new condo, the date after the building registers when title transfers to you and your mortgage starts. It comes after interim occupancy.
Firm closing date#: The closing date the builder is committed to. If it is missed without proper notice, delayed closing compensation may apply.
First-Time Home Buyers’ (FTHB) GST rebate#: A federal rebate of up to $50,000 of the GST (the 5% part of the HST in Ontario) on new homes for first-time buyers, for agreements signed from March 20, 2025. Full up to $1 million, phasing out at $1.5 million. Ontario adds a first-time buyer rebate of up to $80,000.
Floor premium#: An extra charge for units on higher floors in a condo tower, usually a set amount per floor.
Freehold#: Ownership of the home and the land it sits on, without a condo corporation. Detached, semi-detached and freehold townhomes are freehold.

H

HCRA (Home Construction Regulatory Authority)#: The Ontario regulator that licenses new home builders and vendors. Check a builder’s licence on the HCRA’s Ontario Builder Directory. It also charges a $170 + HST oversight fee per home.
HST new housing rebate#: The regular rebates on new homes: Ontario’s up to $24,000 (no price cap) and the federal rebate up to $6,300 on homes under $450,000. They are usually assigned to the builder and built into the price.

I

Interim occupancy#: The period when you live in a new condo before the building registers. You pay an occupancy fee to the builder instead of a mortgage.
Interim occupancy fee#: The monthly fee during interim occupancy: interest on your unpaid balance, estimated property tax and projected common expenses. It does not build equity.

L

Land transfer tax (LTT)#: A provincial tax paid when you take title, plus Toronto’s municipal tax inside Toronto. First-time buyers can get refunds of up to $4,000 (Ontario) and up to $4,475 (Toronto).
Lot premium#: An extra charge for a more desirable lot: a ravine, corner, larger or pie-shaped lot, or a premium location in the subdivision.

M

Move-in ready (inventory home)#: A completed or nearly completed new home that can close quickly. You see exactly what you get and skip interim occupancy.
MyHome#: Tarion’s online portal for new home owners. In year one, items you add are submitted to the builder on day 41, day 183 and day 365 after possession.

N

Non-Resident Speculation Tax (NRST)#: A 25% Ontario tax on homes bought by foreign nationals and certain foreign entities, with some exemptions and rebates. Toronto also charges its own 10% non-resident tax.

O

Occupancy date#: For a new condo, the day you get the keys and interim occupancy begins. It has tentative, firm and outside dates, like freehold closing dates.
Ontario Enhanced New Housing Rebate#: Ontario’s 2026 HST relief for owner-occupiers who sign between April 1, 2026 and March 31, 2027, covering up to $80,000 of the provincial HST. Together with the Ontario New Home Affordability Payment (up to $50,000), it can remove up to $130,000 of HST.
Outside closing date#: The latest date the builder can close. If it passes, you generally have 30 days to cancel and get your deposit back with interest.

P

Parcel of tied land (POTL)#: A freehold home, often a townhome, tied to a common elements condominium that owns shared roads or amenities. Owners pay a monthly fee for the shared elements.
PDI (pre-delivery inspection)#: The mandatory walkthrough with the builder before you take possession. You record damaged, missing or incomplete items on the PDI form.
Phase#: A stage of a larger development released or built separately. Prices usually rise from one phase to the next.
Platinum / VIP access#: Early access to a launch before public release, usually through a registered agent. VIP buyers often get first choice of units, introductory pricing or better deposit terms.
Pre-construction#: Buying a home before it is built, or while it is under construction, from floor plans and renderings.
Price per square foot (psf)#: The price divided by the interior area. The usual way to compare condo pricing across projects. Urbanation reported an average GTA new-launch price of $1,123 psf in 2025.

R

Rate hold#: A lender’s promise to hold an interest rate for a set period. Most rate holds last a few months, so pre-construction buyers lock a rate near closing.
Registration (condo)#: When the condominium declaration and description are registered with the Land Registry Office, creating the condo corporation. Final closing follows.
Reserve fund#: Money a condo corporation sets aside for major repairs and replacements. New buyers often pay a reserve fund contribution on closing.
Right to assign#: A clause allowing you to assign your agreement before closing, often with conditions and a fee. Some builders offer free or reduced-fee assignment as an incentive.

S

Statement of adjustments#: The closing statement that lists the balance owing plus or minus adjustments, such as Tarion and HCRA fees, levies, utility connections and property tax.
Statement of Critical Dates#: The page of the Tarion Addendum that lists your tentative, firm and outside closing or occupancy dates and the builder’s notice deadlines.
Stress test#: The mortgage qualifying rule. Borrowers must qualify at the higher of their contract rate plus 2% or 5.25%.

T

Tarion#: Ontario’s new home warranty and protection program. It administers deposit protection, delayed closing compensation, and the 1-, 2- and 7-year warranties on new homes.
Tarion Addendum#: A mandatory addendum to every new home agreement in Ontario. It sets the rules for closing dates, delays, early termination conditions and adjustments (Schedule B).
Tarion enrolment fee#: The fee builders pay to enrol each new home with Tarion, usually passed on to the buyer. From September 1, 2025 it ranges from $585 to $6,055 plus HST.
Tentative closing date#: An estimated closing date the builder can move with proper notice: at least 90 days’ written notice before each tentative date.

U

Unavoidable delay#: A delay caused by events outside the builder’s control, as defined in the Tarion Addendum. With proper notice, it can extend dates without compensation.
Unit premium (view premium)#: Extra cost for a better view, exposure, corner location or layout.
Upgrades (décor centre)#: Finishes chosen above the standard package, such as flooring, counters and fixtures, usually selected at the builder’s décor centre.

V

Vendor take-back mortgage (VTB)#: A loan from the seller (here, the builder) to help the buyer close, often as a second mortgage. Some builders offer it in slower markets.

W

Worksheet#: A form submitted through a registered agent to express interest in specific units before a launch. It is not a binding agreement.

0–9

30-year amortization#: Since December 15, 2024, insured mortgages can be amortized over 30 years for first-time buyers and for anyone buying a newly built home.

Frequently asked questions

What does pre-construction mean?

Buying a home before it is built, or while it is still under construction, usually from floor plans and renderings. You sign an agreement and pay deposits over time, then close when the home is finished.

What is the difference between occupancy and closing on a condo?

Occupancy is when you get the keys and start paying an interim occupancy fee. Closing is later, after the building registers, when title transfers to you and your mortgage begins.

What is the Tarion Addendum?

A mandatory part of every new home agreement in Ontario that sets rules for closing dates, delays, early termination conditions and closing adjustments.

Keep learning

Put the terms to work: browse all projects, compare builder incentives, plan payments with the deposit calculator, or read our guide to Ontario’s 2026 HST rebate. Questions? Call or text 647-931-3923.

Definitions are general information, not legal, tax or financial advice. Confirm details for your purchase with a real estate lawyer. NewBuild Connect is not a brokerage.