Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained deposit limits and claim deadlines that were out of date, and inspection costs and outcomes we could not source; they have been removed or replaced with figures from the sources listed at the end of the article.
Tarion administers Ontario's new home warranty under the Ontario New Home Warranties Plan Act. If you buy a new home, freehold or condominium, from a builder, it comes with statutory warranty coverage you do not pay extra for. Builders themselves are licensed by a separate regulator, the Home Construction Regulatory Authority (HCRA): check the builder in the Ontario Builder Directory before you sign.
What the warranty covers
- One year: defects in work and materials, and unauthorized substitutions, plus fitness to live in and Ontario Building Code health and safety requirements.
- Two years: water penetration, and defects in work and materials in the electrical, plumbing and heating delivery and distribution systems.
- Seven years: major structural defects.
Coverage has limits: for a condominium unit the maximum statutory coverage is $300,000. Tarion's site lists the full limits and the exclusions, such as normal wear and damage you cause.
Deposit protection
- Freehold homes: deposits are protected up to $60,000 on homes priced at $600,000 or less, and up to 10% of the price to a maximum of $100,000 above that.
- Condominiums: the Condominium Act requires deposits to be held in trust or secured; the warranty covers up to $20,000 if they were not.
- New from April 1, 2026: freehold buyers should register their purchase with Tarion within 45 days of signing. Tarion has deferred the related change to deposit coverage until January 1, 2027; follow its registration page for details.
Delayed closings and occupancy
If the builder delays your closing or occupancy without following the rules on notice, you may be owed compensation, up to $7,500 in total, including $150 a day for living expenses. The rules differ for condos and freeholds; Tarion's delay pages explain both.
The pre-delivery inspection (PDI)
Before you take possession, you walk through the home with the builder's representative and record anything damaged, incomplete or missing on the PDI form. It is your record of the home's condition on the day you received it, so be thorough: test fixtures, doors and windows, and photograph anything you note. You may bring someone with you to help.
How to make a claim
Warranty claims are made through Tarion's online portal, on Tarion's schedule. For homes with a warranty start date before May 1, 2024, the main first-year forms are the 30-day form and the year-end form (submitted in the last 30 days of the first year). Tarion changed the process for homes whose warranty starts on or after May 1, 2024, with several submission points through the first year; your portal shows your dates. After you submit, the builder has an initial 120-day repair period. If items aren't resolved, you can ask Tarion for a conciliation: an inspection by a Tarion representative, who decides what is covered. Missing a window can cost you coverage, so put the dates in your calendar the day you get your keys.
Frequently asked questions
Is a resale home covered?
The warranty stays with the home for its term, so a second owner can claim for the remaining coverage. Once the seven years have passed, there is no Tarion coverage.
Does Tarion cover an assignment purchase?
Coverage attaches to the home, not the buyer. Ask your lawyer to confirm how the assignment is documented with the builder.
What about a builder that goes bankrupt?
Deposit protection and warranty coverage are designed for that situation, within the limits above.
Buying new? Read our pre-construction guide, or ask Zara, Summitly's AI virtual agent, to prepare your PDI checklist.
