FAQs

Navigating the world of pre-construction real estate in Toronto can raise a lot of questions, especially for first-time buyers and investors. To help you make confident, informed decisions, we’ve compiled answers to the most common questions about buying pre-construction homes and condos in the Greater Toronto Area (GTA). From deposit structures and closing costs to VIP access and assignment sales, this FAQ section covers everything you need to know about securing the right property at the right time.

Understanding Pre-Construction Real Estate in Toronto

Thinking about buying a home before it's built? This section covers the fundamentals of pre-construction real estate in Toronto. Whether you're a first-time buyer or an investor, understanding how pre-construction works, its benefits, and potential risks is essential to making a smart purchase in a competitive market like the GTA.

  • A pre-construction home is a property that is sold by a developer before it is built or completed. Buyers purchase the home based on architectural plans and renderings, often at lower prices than market value upon completion. This allows investors and buyers in Toronto to secure units in high-demand areas before prices rise.

  • Buying pre-construction in Toronto involves selecting a unit from a developer’s floor plans, signing a purchase agreement, and paying a deposit in stages over a period of time. Once construction is complete and the project is registered, the buyer pays the remaining balance and closes on the property.

  • Pre-construction properties offer several advantages, including lower upfront costs, the ability to customize finishes, and potential property appreciation during the construction period. Buyers also benefit from a structured deposit plan and time to prepare financially for closing.

  • Risks include project delays, changes in mortgage rules, or the developer failing to complete the project. It’s crucial to work with a reputable builder and experienced advisor like Mr. Precon to reduce risk and protect your investment.

Financing, Deposits & Costs

Pre-construction homes in Toronto come with unique financial considerations. In this section, we break down everything from deposit structures and payment plans to closing costs and mortgage pre-approvals. Knowing what to expect can help you budget more effectively and avoid last-minute surprises.

  • Deposit structures typically range from 15% to 25% of the purchase price, broken into smaller payments over 12 to 24 months. For example, many projects require 5% at signing, followed by additional payments during construction milestones.

  • In Ontario, deposits are generally refundable during the 10-day cooling-off period. After that period, refunds may be subject to terms outlined in your agreement. Always review the contract and consult your lawyer before signing.

  • Closing costs include land transfer taxes, legal fees, development charges, and utility connection fees. These costs typically range from 3% to 5% of the purchase price, and buyers should budget accordingly to avoid surprises.

  • Payment plans are structured over time, allowing buyers to pay the deposit in phases. This reduces financial strain compared to buying resale properties and gives buyers time to arrange financing before final closing.

  • While not always required upfront, having mortgage pre-approval is recommended. It helps you understand your budget and ensures a smoother closing process when the project is completed. Some builders may request proof of financing.

  • You start paying your mortgage only after the project has closed and title ownership is transferred. During interim occupancy, you pay fees to the developer, not mortgage payments to a lender.

Location & Market Insights in Toronto

Location matters, especially in Toronto’s dynamic pre-construction market. This section explores which areas offer the best opportunities for growth and investment, and how to identify reputable builders within the Greater Toronto Area. Use these insights to choose the right neighbourhood and project for your goals.

  • Yes, buying pre-construction in the Greater Toronto Area can be a smart investment due to consistent population growth, limited housing supply, and rising property values. With the right project and location, investors can earn significant returns by the time construction is completed.

  • Some of the top neighbourhoods for pre-construction in Toronto include Downtown, Liberty Village, Yonge & Eglinton, and North York. These areas offer strong growth potential, great amenities, and easy access to public transit, making them attractive to both investors and future homeowners.

  • Start by researching builders with a strong track record of completed projects and positive customer reviews. At Mr. Precon, we only work with developers who have a proven reputation for delivering quality projects on time and meeting all regulatory requirements.

VIP Access, Builders & Launch Process

Getting in early can make all the difference in pre-construction. Learn about VIP launches, builder selection, and how to gain early access to pricing and units before the general public. This section is ideal for serious buyers looking for first-mover advantages and exclusive incentives.

  • VIP pricing is typically available before a project is released to the public. Buyers working with a platinum broker like Mr. Precon often get first access to floor plans, pricing, and incentives—sometimes weeks before the public launch.

  • A VIP launch gives early access to select buyers before the project is made public. These buyers get priority unit selection, lower pricing, and special incentives. A public release occurs later, often with fewer available units and at higher prices.

  • On average, a pre-construction condo or home in Toronto takes 3 to 5 years to complete. Factors such as permits, weather, and construction complexity can affect timelines, so it's important to plan accordingly.

  • Interim occupancy occurs when you can move into your unit before the building is officially registered. During this phase, you pay an occupancy fee instead of a mortgage, and legal ownership is transferred later during final closing.

  • In some cases you can. This is known as an assignment sale. You can sell your purchase agreement to another buyer before final closing, subject to the builder’s consent and assignment clauses in your agreement. It can be a profitable exit strategy.

Timing is everything in real estate. Here, we explain how long pre-construction projects typically take to complete in Toronto, what interim occupancy means, and how assignment sales work if you plan to sell before closing. This section helps you plan your exit strategy—or your move-in date—smartly.

Timelines, Occupancy & Selling

Buyer Support & Services

You don’t have to navigate the pre-construction process alone. This section highlights the services Mr. Precon provides, from VIP access and deal negotiation to expert referrals and assignment support. Learn how we help buyers—especially first-timers—make informed, confident decisions every step of the way.

  • Absolutely. Pre-construction is a great option for first-time buyers looking for flexibility in payments and time to save before closing. First-time buyers may also qualify for government rebates and incentives in Ontario.

  • While not mandatory, working with an experienced agent like Mr. Precon ensures you get early access, better deals, and expert advice. Builders pay the agent’s commission, so buyers get full support at no extra cost.

  • Mr. Precon offers full-service support, including access to VIP launches, floor plan reviews, pricing analysis, assignment sales guidance, and referrals to trusted legal and mortgage professionals. We simplify the process from start to finish.