Pre-Construction and New Construction FAQs

To find new homes for sale in the Greater Toronto Area (GTA), you can use our website’s search feature. You will find the latest offerings available, and we have access to many other projects as well. You can further refine your search by specifying other preferences such as the desired city, budget, number of bedrooms, and any specific features you are looking for in a new home and send this information to my new home source for a more custom report of options.

When buying a new home in Ontario, it’s important to consider various factors. These include the location, proximity to amenities, schools, and transportation, the reputation and experience of the builder, the quality of construction materials and finishes, the warranty offered by the builder, any potential upgrade options, and the overall value for the price. Additionally, you may want to research the community and future development plans in the area.

Determining the market value of a new home in Ontario involves evaluating similar properties in the area, considering the builder’s reputation and track record, and reviewing the overall demand for new homes in that specific location. Consulting with a real estate agent who specializes in new home sales in Ontario can provide valuable insights into current market trends and help you assess the fair market value of a new home.

The steps involved in buying a new home in Ontario typically include:

1. Research and identify new home developments that match your preferences.
2. Visit the model homes or sales centers to learn more about the available options.
3. Select a specific new home and review the purchase agreement, including any upgrade options and warranties.
4. Secure financing and obtain a pre-approval for your mortgage, if needed.
5. Complete the necessary paperwork and provide a deposit to secure the purchase.
6. Stay in touch with the builder throughout the construction process, attending any required design appointments or progress meetings.
7. Conduct a pre-delivery inspection to ensure everything meets your expectations.
8. Finalize the closing process by signing the necessary documents and paying the remaining balance.
9. Take possession of your new home and begin enjoying your new living space.

When buying a property for investment purposes, the primary focus is on potential financial returns. Investors typically consider factors such as rental income potential, property appreciation, market conditions, and the property’s suitability for attracting tenants. On the other hand, buying a property for personal use prioritizes factors like location, personal preferences, lifestyle needs, and long-term comfort rather than maximizing financial returns.

Financing options can differ when buying an investment property versus buying a property for personal use. Lenders may have stricter criteria and require a larger down payment for investment properties. Additionally, interest rates, loan terms, and eligibility requirements can vary. It is advisable to consult with a mortgage professional to understand the specific financing options and requirements for investment properties.

When buying a property for investment purposes, key factors to consider include the potential rental income, location, vacancy rates in the area, property management requirements, property taxes, ongoing maintenance costs, and potential for property appreciation. Conducting thorough market research, analyzing rental market trends, and evaluating the property’s investment potential are crucial before making an investment property purchase.

Yes, there can be tax implications when buying an investment property. Rental income is generally taxable, and you may be eligible to claim deductions for expenses related to the property, such as mortgage interest, property taxes, insurance, and repairs. It is recommended to consult with a tax professional or accountant to understand the specific tax implications based on your investment strategy and local tax laws.

Yes, it is possible to convert a property purchased for personal use into an investment property later. However, it’s important to consider any legal requirements, such as zoning regulations and tenancy laws, before making the transition. Additionally, you may need to adjust your insurance coverage, consult with a tax professional regarding any tax implications, and potentially make renovations or upgrades to make the property more appealing to potential tenants.

Yes, there can be differences in closing costs when purchasing a new home compared to a resale home. While some closing costs are common to both types of properties, there are certain expenses that are typically associated with buying a new home. Here are a few examples:

1. HST/GST: In Canada, the purchase of a new home is subject to Harmonized Sales Tax (HST) or Goods and Services Tax (GST), depending on the province. These taxes are typically included in the purchase price of the new home.
2. Tarion Warranty Fee: In Ontario, buyers of new homes are required to pay a Tarion Warranty fee. This fee covers the warranty protection provided by Tarion, which safeguards against certain construction defects and offers deposit protection.
3. Development Charges: In some cases, buyers of new homes may be responsible for paying development charges imposed by the municipality. These charges contribute to infrastructure costs such as roads, parks, and community facilities.
4. Builder/Development Fees: Some builders may include additional fees for administrative or processing costs associated with the purchase of a new home.

It’s important to note that closing costs can vary based on factors such as the location of the new home, the builder’s policies, and any negotiated agreements. It’s advisable to consult with a real estate professional or a lawyer to get a detailed breakdown of the closing costs specific to the new home you are interested in purchasing.

Yes! If you have any other specific questions, I can help and get you the answers you need.

Contact me, Tracey Taube directly at:

1-416-918-1652 (talk/text)

tracey@mynewhomesource.ca