What Questions Should You Ask When Buying a Condo in Ontario?

Buying a condo in Ontario means asking different questions depending on whether it’s pre-construction or resale: what protects your deposit, when your mortgage actually starts, what a status certificate reveals about the building’s finances, who regulates the builder and warranty, and what the rescission period does and doesn’t cover.

Do I Need a Mortgage Pre-Approval Before Buying a Pre-Construction Condo?

Most builders require a pre-approval letter from a lender before you sign, confirming you’ll be able to carry the unit once it closes — whether through savings, income, or the sale of another property. Because closing can be years away, treat this as a starting point, not a guarantee: talk to a mortgage professional again as your closing date approaches to confirm your qualification still holds.

Does My Mortgage Start the Day I Move In?

No. In a pre-construction purchase, moving in and closing are two separate events, and your mortgage doesn’t begin until closing. Between the two sits interim occupancy: you take possession of your unit and pay occupancy fees — covering your share of the building’s estimated taxes, common expenses, and the portion of the builder’s construction financing attributable to your unit — while the builder still holds legal title to the whole building. Your mortgage only starts once the builder registers the condominium and transfers title of your individual unit to you.

What’s the Difference Between a Deposit and a Down Payment?

They both go toward the purchase, but they’re paid at different times to different parties for different purposes. The deposit is paid to the builder in instalments over the term set out in your purchase agreement — similar in concept to a resale deposit, but collected on a schedule and typically held in the builder’s lawyer’s trust account (or otherwise protected, as described below). The down payment is the equity you provide to your mortgage lender when you close. At closing, the deposit you’ve already paid the builder is generally credited toward the purchase price, which in practice reduces what remains to be funded — ask your lawyer and mortgage professional to walk through exactly how that works for your purchase, since the required deposit structure and the required down payment size are set independently by the builder and your lender, respectively.

Is My Deposit Protected If the Building Doesn’t Get Built?

Your deposit sits in the builder’s lawyer’s trust account, and under the Condominium Act it must be held in trust or otherwise protected using a prescribed security measure, such as deposit insurance. If your purchase agreement is terminated by the builder, your deposit must be returned to you. Tarion’s new-home warranty program also provides deposit protection on enrolled homes, including amounts you’ve put toward upgrades — ask your lawyer to confirm the current protection limits and what triggers them, since these are set by Tarion, not the builder. Because the purchase agreement is drafted for the builder’s protection, have a real estate lawyer review it — and the rest of the disclosure package — before your rescission period runs out.

What Is the 10-Day Rescission Period, and Does It Apply to Resale Condos?

As of July 2026, Ontario’s Condominium Act gives buyers of a new, pre-construction condominium unit a statutory 10-day rescission (cooling-off) period, running from receipt of the agreement or the disclosure statement — confirm the current mechanics with your lawyer or Ontario.ca, since this is a legislated right that could change. This right is specific to new-unit purchases; it does not apply to buying a resale condo. CRESI’s guide on why buy pre-construction instead of resale covers this right, and how the two paths compare on it, in full.

What Do Condo Fees Cover?

Condo (maintenance) fees fund the building’s common expenses — typically water, building insurance, common-area heating or cooling, and shared amenities and parking — and are calculated based on your unit’s percentage share of common expenses, which the condominium corporation’s declaration sets out; that share often correlates with unit size but isn’t defined by square footage per se. Fees vary building to building depending on what amenities exist and what they cost to run; a pool, a concierge, or on-site security tend to push fees higher because they carry ongoing labour and maintenance costs. Ask for the current fee, the building’s fee history, and — for a resale unit — what the status certificate says about upcoming increases.

Who Regulates New Condo Builders, and Is There a Warranty?

Yes. New condo builders in Ontario are licensed and regulated by the Home Construction Regulatory Authority (HCRA), and Tarion administers the province’s new-home warranty program, handling enrolment, claims, and deposit protection on covered homes. As a purchaser, this warranty structure gives you scheduled opportunities to flag issues — including a pre-delivery inspection (PDI) before you take possession, and, after you move in, homeowner-submitted Tarion warranty forms (Initial, Mid-Year, and Year-End) that let you list defects and formally request warranty service — which are your main chances to have cosmetic issues corrected. Beyond the PDI and those warranty forms, Tarion’s warranty covers different categories of defects over different periods, from basic construction defects through major structural issues — ask your lawyer or check Tarion’s current published terms for exactly what’s covered and for how long, since warranty terms are set by Tarion and can be updated.

Is There Room to Negotiate on a Pre-Construction Unit’s Price?

Buying directly from a builder doesn’t work like a resale bidding war — builders typically set a fixed list price per unit rather than entertaining competing offers between buyers. That said, only a limited number of units exist in any building at a given price point and floor plan. If a specific layout and price matter to you, ask your representative how the builder’s release pricing and unit availability work.

What Is a Status Certificate, and Why Does It Matter on a Resale Purchase?

A status certificate is the package of documents the condominium corporation provides disclosing its financial and legal state — the current budget, reserve fund standing, bylaws and rules, insurance, any pending or planned special assessments, and any litigation involving the corporation. Because a walkthrough of the unit tells you nothing about the building’s finances or governance, have your real estate lawyer review the certificate as a condition of your resale agreement before the deal becomes firm. CRESI’s guide to reading a resale condo status certificate covers what the package contains, how to read the reserve-fund section, and what to do if it raises a concern.

What Is a Reserve Fund, and What Should I Ask About It?

The reserve fund is the condo corporation’s savings account for major repairs and replacements — roof, elevators, building envelope, mechanical systems — funded by a portion of everyone’s condo fees. Ask whether the fund’s most recent reserve fund study shows it’s adequately funded for upcoming work, what major projects are planned, and whether the corporation has had to levy a special assessment recently or is expecting to. A poorly funded reserve is one of the biggest hidden costs in a resale condo purchase, and the status certificate is where you find it.

What Is a Special Assessment?

A special assessment is a one-time extra charge the condo corporation levies on all unit owners, on top of regular condo fees, usually because the reserve fund can’t cover a needed repair or an unexpected expense arose. A current status certificate discloses any special assessment that’s been approved, proposed, or under discussion — ask your lawyer to flag this specifically, and ask property management directly whether anything is being considered that hasn’t yet reached the status certificate.

Pre-Construction vs. Resale: How Do the Buying Processes Differ?

The two paths protect you through different mechanisms at different points in the transaction — a statutory rescission period and Tarion’s warranty on the pre-construction side, a status certificate and no cooling-off right on the resale side. CRESI’s guide on why buy pre-construction instead of resale lays out that full structural comparison, including the deposit, occupancy, and warranty differences; the sections above and below cover the questions specific to each path.

What Should I Ask About Pet Policies and Building Rules?

Every building sets its own rules on pets — some restrict size or breed, some cap the number, and some don’t allow certain pets at all. For a pre-construction unit, these rules typically appear in the disclosure package you can review during your rescission period; for a resale unit, they’re part of the condo corporation’s rules included with the status certificate. If you have or plan to have a pet, confirm the building’s current rules directly rather than assuming, since they vary widely and can be amended by the corporation over time.