Tarion deposit protection: how much of your deposit is covered?
Pre-construction buyers often hand over tens of thousands of dollars years before closing. Ontario's new home warranty protects part of that money if the builder can't complete the deal.
Freehold homes
- Homes priced at $600,000 or less: deposits covered up to $60,000.
- Homes priced over $600,000: covered up to 10% of the price, to a maximum of $100,000.
Coverage includes money paid for upgrades and extras. Starting in 2026, freehold buyers are encouraged to notify Tarion of their purchase within 45 days of signing, which can unlock additional deposit coverage. Check tarion.com for the current details.
Condominiums
The Condominium Act requires builders to hold condo deposits in trust. If a deposit wasn't properly protected, Tarion covers up to $20,000 plus a limited amount of interest.
How to protect yourself
- Keep deposits within the coverage limits where you can, especially with a newer builder.
- Check the builder's licence and warranty history first. See the rankings.
- Keep every receipt for deposits, upgrades and extras.
Common questions
How much of my deposit does Tarion protect on a freehold home?
Up to $60,000 for homes priced at $600,000 or less, and up to 10% of the price to a maximum of $100,000 for homes priced over $600,000.
Are condo deposits protected in Ontario?
Builders must hold condo deposits in trust under the Condominium Act. If that protection fails, Tarion covers up to $20,000 plus limited interest.
More buyer guides
Get new build projects before they launch
Join the VIP list for upcoming Ontario pre-construction and new home projects. Get floor plans, pricing and platinum access dates before public release, plus updates when builders open new phases.
- Early access and VIP pricing on new releases
- Only the areas and home types you choose
- Builder scores alongside every project we send