Pre-Construction Condos in Toronto: Complete Buying Guide 2026

Understanding Pre-Construction Purchases

Buying a pre-construction condo means purchasing a unit before it's built, typically from a developer's sales centre with model suites and floor plans. While it offers potential benefits, the process differs significantly from resale purchases. This guide explains everything Toronto buyers need to know.

How Pre-Construction Works

The Purchase Timeline

1. Project Launch: Developer opens sales, often with VIP access for agents
2. Contract Signing: Sign Agreement of Purchase and Sale
3. 10-Day Cooling Off: Mandatory period to review with lawyer
4. Deposit Payments: Structured deposits over 12-24 months
5. Construction Period: Typically 3-5 years
6. Occupancy: Move in, pay occupancy fees
7. Final Closing: Title transfer, mortgage starts

Typical Deposit Structure

Pre-construction deposits are structured to ease cash flow:

• Signing: $5,000-$10,000
• 30 Days: 5% minus signing deposit
• 90 Days: 2.5%
• 180 Days: 2.5%
• 365 Days: 5%
• 540 Days: 5%
• Total: 20% before occupancy

Some projects require 15% total, others may require up to 25%.

Benefits of Buying Pre-Construction

Financial Advantages

• Lower Initial Investment: Spread deposits over time
• Appreciation Potential: Lock in today's price, benefit from future gains
• New Construction Premium: New buildings often command higher rents/resale
• Customization: Choose finishes, upgrades, floor plans

Lifestyle Benefits

• Modern Amenities: Newest gyms, pools, technology
• Energy Efficiency: Latest building codes and standards
• Warranty Coverage: Tarion warranty protection
• New Everything: No wear, no previous occupants

Risks and Considerations

Project Risks

• Delays: Construction delays of 1-2+ years are common
• Cancellation: Projects can be cancelled if sales targets aren't met
• Developer Quality: Not all developers deliver equal quality
• Specification Changes: Final product may differ from model suite

Market Risks

• Market Decline: Values could drop during construction
• Interest Rate Changes: Rates may be higher at closing
• Assignment Difficulties: May not be able to sell before closing
• Mortgage Qualification: Must qualify at closing, not signing

Financial Surprises

• Levies and Adjustments: Development charges passed to buyers
• Occupancy Fees: Pay before you own (mortgage-like payments)
• Upgrades: Model suite finishes may be upgrades
• Parking/Locker: Often extra ($50,000-$100,000+)

Current Pre-Construction Landscape

Price Ranges by Area

• Downtown Core: $1,200-$1,800/sq ft
• King West: $1,400-$1,700/sq ft
• North York: $900-$1,200/sq ft
• Etobicoke: $800-$1,100/sq ft
• Scarborough: $700-$900/sq ft

What to Look For

Key factors when evaluating projects:

• Developer Track Record: Research past projects and reviews
• Location Fundamentals: Transit, employment, amenities
• Building Specifications: Suite sizes, ceiling heights, layouts
• Amenities: What's included vs. competitors
• Price Comparison: Vs. resale and other pre-con options

Assignment Sales Explained

An assignment is selling your contract before closing:

How Assignments Work

1. Original buyer finds new buyer
2. Developer approval required (usually fees apply)
3. New buyer takes over contract obligations
4. Original buyer receives deposit back plus profit/loss

Assignment Considerations

• Developer may restrict or prohibit assignments
• Assignment fees: $5,000-$10,000+
• Marketing restrictions may apply
• Tax implications on any profit
• Requires specialized legal/realtor expertise

Due Diligence Checklist

Before signing, ensure you've:

• Researched the developer thoroughly
• Visited the model suite and sales centre
• Reviewed the full Agreement of Purchase and Sale with your lawyer
• Understood all deposit and closing cost requirements
• Verified your future mortgage qualification
• Compared to resale alternatives
• Assessed the realistic timeline
• Reviewed the condo declaration and budget

Working with a Pre-Construction Specialist

A realtor experienced in pre-construction provides:

• VIP access to launches before public
• Developer relationship for negotiation
• Market analysis comparing projects
• Contract review and negotiation
• Guidance through the entire process

Note: Developer pays realtor commission, so buyer representation is typically free.

Is Pre-Construction Right for You?

Pre-construction suits buyers who:

• Have time before needing to move
• Can manage deposit payments over time
• Understand and accept the risks
• Want brand-new with modern amenities
• Have flexibility for potential delays

Contact us to discuss current pre-construction opportunities and whether this path suits your goals.