First-Time Buyer's Complete Guide to Buying Pre-Construction in Ontario (2026)

From deposits to closing costs to government programs — here's everything a first-time buyer needs to know about purchasing pre-construction in Ontario in 2026.

By Karan Dhulla · 2026-02-20 · Buyer Guide · 8 min read

Your Step-by-Step Roadmap to Homeownership

Buying your first home is exciting — and overwhelming. If you're considering pre-construction, the process is different from buying resale. This guide walks you through everything, from initial research to getting your keys, with specific insights for The South Banks Towns at Lakeview Village.

Step 1: Understand Your Budget

Before anything else, get a clear picture of what you can afford:

The 30% Rule

Your total housing costs (mortgage, taxes, condo fees) should not exceed 30% of your gross household income.

Pre-Approval

Get mortgage pre-approved before shopping. This tells you:

  • Your maximum purchase price
  • Your interest rate (locked for 90–120 days)
  • Any conditions you need to meet

    • What You'll Need for Pre-Approval

  • Employment letter and recent pay stubs
  • 2 years of T4s or Notice of Assessments
  • Bank statements (3 months)
  • List of debts and monthly payments
  • Government-issued ID

    • Step 2: Understand the Deposit Structure

    Pre-construction deposits are paid in installments — not all at once. Here's a typical structure:

    For a $600,000 The South Banks Towns unit, your total deposits would be approximately $120,000 — but spread over 12+ months.

    Step 3: Know Your Government Programs

    First-time buyers in Ontario have access to several programs that can save tens of thousands:

    Home Buyers' Plan (HBP)

  • Withdraw up to $60,000 from your RRSP tax-free
  • Couples can withdraw up to $120,000 combined
  • Must repay over 15 years

    • First Home Savings Account (FHSA)

  • Save up to $40,000 tax-free
  • Contributions are tax-deductible (like an RRSP)
  • Withdrawals for a home purchase are tax-free (like a TFSA)
  • Can contribute $8,000 per year

    • Ontario Land Transfer Tax Refund

  • First-time buyers get up to $4,000 back
  • Applied at closing

    • HST New Housing Rebate

  • $24,000 Ontario rebate (all buyers)
  • Up to $71,000+ under proposed 2025 FTHB enhanced rebates
  • Only applies to new construction — not resale

    • Summary of Potential Savings

    Step 4: Choose Your Home

    When evaluating pre-construction options, consider:

  • Location & transit access — The South Banks Towns is 4 min to Long Branch GO
  • Builder reputation — DECO Homes and OPUS Homes have delivered thousands of homes across Ontario
  • What's included — The South Banks Towns includes free parking (saving $50K–$80K)
  • Floor plans — layouts with up to 4 bedrooms for different lifestyle needs
  • Community amenities — 451 acres of green space at Lakeview Village

    • Step 5: Understand Your Agreement of Purchase and Sale

    Your APS is a legal contract. Key clauses to understand:

  • Cooling-off period — You have 10 calendar days to cancel without penalty
  • Assignment clause — Can you sell your contract before closing?
  • Occupancy terms — When you move in vs. when you take ownership
  • Cap on development charges — Protection against unexpected cost increases
  • Tarion enrollment — Confirms your warranty coverage

    • Always hire a real estate lawyer to review your APS before signing.

    Step 6: The Waiting Period

    Pre-construction means waiting for your home to be built. During this time:

  • Save aggressively for closing costs (budget 1.5–4% of purchase price)
  • Monitor your credit — don't take on new debt
  • Stay in touch with your builder for construction updates
  • Plan your move — start thinking about furniture and utilities

    • Key pages

    Sales by Condo Circle — +1-289-400-0110 — Info@condocircle.ca. We do not represent the builder. Renderings are artist's concept. E.&O.E.