By Mohsin Lakhani · Benson Crew Real Estate, REAL Broker Ontario Ltd., Brokerage
New build and resale homes trade off in almost opposite directions — new construction offers meaningful GST/HST rebate potential and modern finishes, while resale offers a faster close and no surprises about what you're actually getting. Neither is universally better; the right choice depends on your timeline and how much price certainty matters to you.
First-time buyers purchasing new construction can access significant combined federal and Ontario GST/HST rebates on homes priced at $1,000,000 or less — see our full breakdown of how these rebates stack. Resale homes don't qualify for these first-time buyer GST/HST rebates — full stop, regardless of how new a buyer you are. This alone can be the deciding factor when comparing two similarly priced properties.
With resale, you're buying a known quantity — you can walk through the actual unit, order an inspection, and see exactly what condition it's in before committing. With new construction, especially pre-construction, you're buying based on floor plans and renderings, with the finished product not materializing for months or years.
Resale typically closes 30 to 90 days after a firm offer. Pre-construction can mean a wait measured in years, though completed new-build inventory (move-in ready) closes on a timeline closer to resale.
Resale generally requires a lump-sum deposit shortly after your offer is accepted. Pre-construction deposits are often spread across multiple payments over the construction period, which can make the entry point more manageable for some buyers even if the total price is similar.
Buying pre-construction means accepting some market risk over the construction timeline — conditions, financing environments, and even your own life circumstances can shift before closing. Resale eliminates most of that uncertainty since you're closing on a known property in the near term.
Not necessarily on price alone, but factoring in available GST/HST rebates, new construction can end up cheaper on true out-of-pocket cost even at a higher sticker price.
Pre-construction can't be inspected before it exists, though most new builds come with statutory warranty coverage. Completed new-build inventory can typically still be inspected before closing.
Resale or completed (move-in ready) new-build inventory — pre-construction is not a fit if you need to move within the next several months.
Yes — unlike the GST/HST rebate, the Ontario and Toronto land transfer tax rebates apply to both new-construction and resale purchases.
This post is provided for general informational purposes only. Rebate eligibility and program details are current as of July 2026 and subject to change — confirm specifics with your mortgage professional.