Comparing resale and new construction homes in Ontario—what’s the better fit for your lifestyle?

Should You Buy a Resale or New Construction Home in Ontario?

When you’re ready to buy a home in Ontario, one of the first questions you’ll face is: should you go for a resale property or a brand-new build? Both options have their perks, but let’s break down the differences so you can make the smartest move for your budget, lifestyle, and timeline.

🏗 What Is a Resale Home vs. New Construction?

A resale home is a property that’s been previously owned and lived in. New construction, on the other hand, is a home that’s just been built—often bought directly from a builder, sometimes even before it’s finished.

💰 Price Differences: What to Expect in Ontario

Resale homes tend to offer better value for your money. While new builds might look shiny and modern, they usually come with a premium price tag and extra costs (think: upgrades, landscaping, and new appliances). With resale, you’re more likely to get a bigger lot, established neighbourhood, and mature trees—all at a price that stretches your dollar further.

⏳ Timeline: Move-in Ready vs. Builder Timelines

Need to move soon? Resale homes are usually ready for you in 30–90 days. New construction can mean waiting months—or even a year or more—especially if you’re buying pre-construction. Builder delays are common, so keep your moving plans flexible if you go this route.

🛠 Warranty & Maintenance Considerations

New homes in Ontario come with the Tarion warranty, which covers certain defects for up to seven years. But don’t forget: new homes can still have issues, and you’ll be the first to discover them. Resale homes might need a little updating, but you can see how the property has performed over time and often negotiate repairs or credits during the purchase.

⚖️ Legal & Financial Differences

• Deposits: New builds often require a larger deposit, sometimes up to 20% over several months. Resale homes typically need 5%–10% upfront.
• Taxes: HST applies to new builds but not usually to resale homes. This can make a big difference in your final price.
• Closing Costs: New builds may have extra builder fees and development charges. Read our closing costs guide for more details.

📍 Which Is Right for You?

If you’re looking for the best bang for your buck, resale homes often deliver more space, character, and value—especially in established communities. New builds are great if you want everything brand new and are willing to wait (and pay a premium) for it. Think about your priorities: budget, timing, location, and whether you’re comfortable with renovations or want turnkey perfection.

Don’t forget: whether you’re buying resale or new construction, you’ll need a Buyer Representation Agreement to protect your interests, and you’ll pay Land Transfer Tax on both types of homes.

Still not sure which path is right for you? Ask Dan for a personalized consultation—I’ll help you weigh your options and find the perfect fit!