Buying a pre-construction loft in Ontario

You get a 10-day cooling-off period

New soft lofts and newly converted hard lofts are sold as condominiums. When you buy a new condo from a builder in Ontario, you have 10 days to change your mind. The clock starts when you receive the signed agreement and the disclosure statement. Use those days to have a lawyer who knows pre-construction review the agreement, and to confirm your mortgage pre-approval.

Deposits are paid in stages

Instead of one deposit, you usually pay several over the first year or two. Deposits on new condos must be held in trust, and Tarion's deposit protection covers them up to a set limit.

Occupancy comes before closing

A suite is often ready before the condominium is registered. During that gap, called interim occupancy, you can move in but you do not own the suite yet. You pay the builder a monthly occupancy fee, which is not a mortgage payment and does not reduce what you owe.

Look hard at the floor plan

Loft plans are sold on ceiling height and open space. Check the actual ceiling height of your suite and floor, where bulkheads and ducts will run, whether the bedroom has a window and a door, and which way the windows face. What is exposed and what is drywalled should be written into the agreement, not left to the brochure.

Budget for closing costs

On top of land transfer tax and legal fees, new condos come with adjustments such as development charges, utility connection fees and Tarion enrolment. Ask for these to be capped in your agreement, and ask your lawyer what a realistic total looks like. How HST and any rebate apply depends on whether you will live in the suite or rent it out, so confirm that with your lawyer or accountant early.

Dates move

Occupancy and closing dates in the agreement are tentative and builders are allowed to extend them within set limits. Plan your current housing with that in mind.

Know your assignment rights

If your plans change before closing, you may be able to sell your agreement to another buyer. Whether you can, and what the builder charges, is set by the assignment clause, so negotiate it at the start. See how assignment sales work.