Home » Industry & Business » First-time Home Buyer 2022 » Buying a Newly-Built Home: Five Things Your Warranty Covers
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Peter Balasubramanian

Peter Balasubramanian

President and CEO, Tarion

Buying a pre-construction home is an exciting step that requires careful decision-making. It helps to know how your new home warranty protects your purchase.


Choosing a newly-built house or condo as your first home can be a good way to avoid bidding wars and to personalize your home with finishes that suit your style. In Ontario, new homes are protected by a warranty that’s provided by the builder and backstopped by Tarion, a not-for-profit consumer protection organization.

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Here are five key protections that your warranty provides:

Your deposit

Freehold home deposits (including upgrades and extras) are covered for up to $60,000 on homes with a purchase price of $600,000 or less, and up to $100,000 on homes over $600,000. Condo deposits are protected under Ontario’s Condominium Act and have warranty coverage up to $20,000.

Delayed closing

Delays to your closing or occupancy date can lead to extra storage or moving costs. Your warranty ensures that you’ll be compensated if your builder provides short notice of a delay, or if the delay extends beyond a certain date.

Unauthorized substitutions

In most cases, the builder is required to get your written approval before substituting any interior or exterior finishes that the builder has agreed to provide. If changes are made without your consent, the builder is required to provide either your original selections or a cash settlement.

Defects in your home

Your home comes with one-, two-, and seven-year warranties for a total of $300,000 of warranty coverage for work and materials, Ontario Building Code violations, structural defects, and more.

Condominium common elements

When you buy a condo, there are separate warranties for your unit and the building’s shared areas, known as common elements. Tarion’s website provides a full breakdown of what’s covered.

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