Pre-Construction Projects
Matching You With The Right One
You must have heard about it – buying pre-construction projects are all the rage in the GTA right now. However, since around 2010, this trend has actually never wavered and continues to gain steam towards the next decade. After all, property growth is always predicated on demand and solid fundamentals such as jobs and quality of life.
With over 500 new pre-construction projects currently available on the GTA market, it can be very difficult to determine which one is the right fit for you. Here at Fung Finances, we have the expertise, knowledge and the resources to make your next purchase is exciting and successful. By listening to your wants and needs, we are able to accurately pinpoint certain pre-construction projects that fit your criteria. In addition, we have taken the liberty to feature certain pre-construction projects that we feel worth taking a look in the section below.
Feature Pre-Construction Projects
Est. Comp 2024
- Condominium
$ 490,000 - 680,000
1 Commerce St., Vaughan, ON
Bedrooms: 1-2 / Size: 497-699 SqFt
Est. Comp 2025
- Condominium
$ 605,000- $1,850,000
Denison Ave. & Dundas St, Toronto, ON
Bedrooms: 1-3 / Size: 516-1475 SqFt
Est. Comp 2023
- Condominium
$ 530,000 - $1,280,000
689 The Queensway, Toronto, ON
Bedrooms: 1-3.5 / Size: 520-1355 SqFt
Pre-Construction Project Partners
Frequently Asked Questions About Pre-Construction Projects
1. Do I have to Pay HST when I purchase Pre-Construction Projects?
Since 2010, all pre-construction projects, which includes new homes and condos, are in Ontario are subjected to a 13% Harmonized Sales Tax (HST).
Fortunately there is an Ontario HST rebate program for pre-construction end-users (meaning that these buyers are buying for their personal use, not to flip for profit, or to rent out to a tenant). When purchasing a new home or condo to live in, or for a family member to live in, the Ontario HST rebate is frequently assigned to the builder upon closing. As such, most advertised pre-construction prices assume you are the end-users, qualify for this rebate and is factored into the purchase price. If you’re an investor, there is a similar rebate available (NRRPR) that can only be applied for by the investor after closing and is never done so by the home builder. If you require further information about HST and Pre-Construction projects, you can find that here.
2. Are there Any hidden Fees or Costs Associated with Pre-Construction Projects?
No, there are no hidden fees when buying pre-construction condos because all fees must be disclosed in the agreement of purchase and sale. All purchasers have 10 days to review the agreement and have a lawyer advise them on the exact closing cost amounts. If you need a lawyer to help you, we can suggest to you to several expert law firms that will review your agreement in detail. With that said, there are a lot of closing costs to consider but not limited to:
- Condo Maintenance Fee and Reserve Fund – The condo fees will cover routine maintenance as well as the reserve fund sets aside money for non-routine repairs and replacements.
- Development Levies – When a new space is developed, the developers are required to pay the municipality a certain amount for new park space, community resources or public art projects, if applicable. As a result, home builders worked into the buyer’s closing costs.
- Buyer’s Legal Fees – You will need a lawyer needs to review your documents and register your name on title.
- Land Transfer Tax (Municipal and/or Provincial) – See here for more information.
- Miscellaneous Costs – Can vary from Utility hookup fees to Tarion Warranty Enrollment Fee.
To find out more information about closing costs, you can find that here.
3. Is there warranty on Pre-Construction Projects?
Every new home or new condo in Ontario is covered by the Tarion Warranty program, however the home owner does have to pay an enrolment fee ($600-$1500 +13% HST). If you require further information about Tarion Warranty program and how it works, you can find that here.
4. What If I want to Cancel After Signing a Contract To Purchase A Pre-Construction Project?
After you sign the contract to purchase a pre-construction condo suite, you will have a standard 10-day cooling off period. It’s 10 calendar days, not business days from the time you sign. The 10 days are primarily for 2 things: 1) to have a lawyer review your contract with you if you wish and 2) to get a mortgage pre-approval letter.
5. What If I still Have Questions about Pre-Construction Projects?
If you aren’t familiar with Pre-Constructions, we can definitely give you a quick run-through of it. To find out more information about it, you can find that right here.
Interested in a pre-Construction Project?
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