top of page


Screen Shot 2019-09-16 at 12.34.04

Pre-Construction Discounts / Incentives

Most developers will offer some form of incentives shortly after launching a new project. These incentives vary significantly between projects and developers. Consultation with a real estate agent who is experienced with pre construction sales will ensure you make the best choice. 


Developers usually offer the best incentives prior to or shortly after launching a development. These incentives are meant to drive initial sales. Incentives can be in the form of reduced deposits, discounted pricing, and/or upgrade packages. These early sales are crucial to ensure the developer has financing to begin construction and further market the project. Prices generally increase as more units sell and the development gets closer to completion. 


Maintaining a relationship with an agent and advising them of your interest in investing in pre construction is important. Often brokerages are the first to be made aware of new projects and incentives. Developers commonly advise brokerages of their initial incentives so they can inform their clients of the opportunity. Maintaining a relationship with an agent will ensure you are made aware of incentives early.

Pre-Construction Discounts / Incentives

Your typical deposit structure on a pre-construction investment property in Toronto will be $5,000 on signing. After which, most developments require:

  • 5% of balance in 30 days

  • 5% in 60 to 90 days

  • 5% in 180 to 270 days

Final 5% on occupancy three to four years later

This flexibility is beneficial to first time buyers and investors as it helps you leverage your savings.

No mortgage requirement during construction

Many are unaware that you do not require a mortgage until you close. This means that your deposit is the only expense you will incur prior to closing. Over the 3-4 year construction period you will benefit from the growth in equity.


Shortly after interim occupancy, the building will officially register with the city, it’s at this time that your mortgage will kick in and you will have to pay your closing expenses. With pre-construction condos this includes:

  • Land Transfer Tax (LTT)

  • Development Charges

  • Legal Fees

HST (rebatable up to $24,000 when you have a one year lease in place)

bottom of page