What is Pre-Construction?
A pre-construction home is a property you buy before it is built — directly from the builder, based on floor plans, renderings and a model suite rather than a finished home you can walk through. You reserve your unit early, pay your deposit over time, and take possession months or years later once construction is complete.
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How pre-construction works
Instead of competing for a resale home on the open market, you sign a purchase agreement with a builder and choose from available floor plans. You pay a deposit in instalments (not the full price), then your remaining balance is due at closing — usually through a mortgage. While the building goes up, your money is working for you and your purchase price is locked in.
Pre-construction vs. resale vs. new (move-in ready)
| Pre-construction | New (built) | Resale | |
|---|---|---|---|
| When you move in | Months to years later | Right away | On closing (~30–90 days) |
| Deposit | Spread over time (~15–20%) | 20%+ typical | 5%+ typical |
| Price | Locked in today | Today's price | Today's price |
| Customization | Finishes & upgrades | Limited | None (as-is) |
| Warranty | Tarion (7-yr) | Tarion (7-yr) | None |
Who is pre-construction right for?
- First-time buyers who need time to save the full deposit and want a brand-new home.
- Investors looking for appreciation during the build and a tenant-ready unit on completion.
- Right-sizers who want a specific floor plan, location or building and can wait for it.
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Pre-construction is a longer game. If you need to move in the next few months, resale or a move-in-ready new home is usually the better fit.
Frequently Asked Questions
Is buying pre-construction cheaper than resale?
Not always cheaper today, but you lock in today's price and pay your deposit over time, so you have longer to save while the home is built. Whether it works out ahead depends on the market between signing and closing.
How long does it take to get the keys?
It varies — anywhere from about 1 to 4+ years depending on the project and whether it is a condo (interim occupancy first) or freehold. Your agreement will list estimated occupancy and closing dates.
Do I need a realtor to buy pre-construction?
Yes — and it usually costs you nothing. The builder pays the agent commission, and a pre-construction-experienced realtor gets you VIP/Platinum access, the best floor plans, and reviews your contract before you sign.