We’ve purchased our fair share of homes directly from a builder over the past 14 years and would like to think we’ve learned a thing or two along the way. If you don’t know what I’m talking about, check out this post from a few months back where I delve into all the details about a serious life lesson we learned (the hard way). Because of this experience, I feel like it’s my obligation to share with you some of the things (we’ve learned) that you could also benefit from knowing when buying your first home.

If you’re looking to buy a pre-construction home in Ontario, there are a few simple points you need to know before signing on the dotted line, saving you stress and anxiety, and allowing you to truly enjoy your new home purchase. Here are 5 things to remember when making your purchase:

1. PURCHASE FROM A REPUTABLE BUILDER
There are numerous builders in Ontario with wonderful reputations of delivering a high-quality product, amazing customer service, and an overall enjoyable buying experience. However, if you are looking to purchase a pre-construction home from a small, lesser-known builder, do your due diligence and find out all you can about them as a company. Feel free to check out the Tarion Ontario Builder Directory to find out more about the builder you are interested in working with if you are unsure about their status and reputation. If you decide to go ahead with a purchase, you can feel confident knowing that deposits paid for new homes are protected by Tarion up to a max of $40,000, and condominium unit deposits are protected up to $20,000. Condominium deposits are also protected by the trust provisions of The Condominium Act. However, any payments to hold a home or condo without a purchase agreement in place are not covered by the Tarion Warranty, so be sure to put this money in trust with a lawyer to cover yourself against anything unfortunately going wrong.

2. ASK LOTS OF QUESTIONS
Whether you are dealing with a large, well-known builder or a small boutique-style company, don’t take anything at face value. Ask as many questions as it takes before you fully understand what’s involved in your purchase. It’s essential to ensure that everything you’ve agreed upon with the builder is in writing; never accept verbal promises! Remember, there is no such thing as a dumb question, so especially if this is your first pre-construction home purchase, take the time to write out a list of questions you would like answered and set an appointment to discuss each one of them with your sales representative. It’s also a good idea to invite a trusted friend or relative who has been through this process before to be with you at your appointment for support and to perhaps ask additional questions you may have missed.

3. LEARN IF GOVERNMENT INCENTIVES ARE AVAILABLE TO YOU
If this is the first home you are purchasing in Ontario, be sure to do your research to find out if any government incentives are available to you to help with this major investment. A land transfer tax credit for the full or partial amount may be available for qualified purchases, so be sure to find out if you qualify.

4. HIRE A LAWYER BEFORE YOU FINALIZE ANY AGREEMENT
Having a lawyer review a Purchase of Sale Agreement BEFORE you sign, is always a good idea to make sure that you completely understand your rights as a buyer as well as your obligations. These contracts tend to be long, full of legal jargon, and not easily understood. A good lawyer may suggest making some adjustments to the contract and a reasonable builder will be able to tell you if these are changes they can work with.

5. WORK CLOSELY WITH TARION
The Tarion New Ontario Home Warranty program is set up to protect you as a homebuyer, and working closely with them is always a wise decision. Once you take possession of your new home, Tarion can help make sure that your builder delivers high-quality after-sales service within the timeframes set out in the warranty. Tarion has a wide variety of valuable tools available on its website to help you from the time you start the buying process to long after you are settled into your new home.