Delayed closing in Ontario: what your builder owes you

Delays are common on new builds. Ontario's delayed closing warranty means builders can't push your closing date around without consequences.

Know your critical dates

Every new freehold purchase agreement includes a Statement of Critical Dates. The key ones are the first tentative closing date, the firm closing date and the outside closing date. Condos have equivalent occupancy dates.

What you're owed

If closing is delayed beyond the firm closing date, other than by mutual agreement or an unavoidable delay like a strike or flood, the builder must pay compensation up to a total of $7,500. That includes:

• $150 a day for living expenses such as accommodation and meals, without receipts
• Other documented costs such as moving and storage
• $1,500 extra if the builder failed to give you at least 10 days' notice of the delay

If the home still isn't ready by the outside closing date, you may be able to end the agreement, get your deposit back and claim compensation.

How to claim

Submit Tarion's Delayed Closing/Occupancy Claim Form through MyHome, Tarion's online portal, within the required time after closing. Keep records of every notice the builder sends you.

Plan around delays

Line up flexible arrangements for your current home and keep your mortgage pre-approval current. A rate hold can expire during a long delay, so talk to your lender as soon as dates move.

Common questions

How much compensation do I get for a delayed closing in Ontario?

Up to $7,500 in total, including $150 a day for living expenses, plus $1,500 if the builder failed to give at least 10 days notice of the delay.

More buyer guides

• Ontario HST rebate on new homes: up to $130,000 (2026 guide)
• First-time buyer GST/HST rebate on new homes in Ontario
• New home closing costs in Ontario: what to budget
• HST included in your builder contract: who gets the rebate?
• Tarion deposit protection: how much of your deposit is covered?