Ontario new condos · Buyer decisions · Reviewed October 2026
Interim occupancy can put you inside your new condo before you own it. Know the monthly cost, what it does not pay off, and what changes at final closing.
A buyer's dilemma · Hypothetical example
You paid $120,000 in deposits during construction. A builder says your unit is ready and you can move in next month, but final closing cannot happen until the condominium is registered. You had planned for your eventual mortgage and maintenance fees—not a separate stage of payments to the builder.
Suppose the interim occupancy calculation used a hypothetical 5% annual interest rate on the remaining $480,000, plus $250 in estimated monthly tax and $500 in projected common expenses. That would be $2,750 each month. Four months would mean $11,000 in carrying costs, not a purchase-price credit. These figures are deliberately invented to teach the calculation; they are not a builder quote or the current prescribed rate.
The five-stage journey
For a new Ontario condominium purchase, a 10-day cooling-off period generally starts after you receive the fully signed agreement, disclosure statement and CAO Buyers’ Guide. Have a condo lawyer review them promptly—not after the period runs out.
Deposits made under the agreement count toward the purchase price. Check who holds them, the exact due dates, and which project cancellation or price-adjustment clauses you accepted.
The builder may allow or require occupancy before the condominium corporation is registered and title can transfer. You may live there, but you are not yet the legal owner; an interim occupancy fee can be due even if you do not move in.
The legal fee ceiling combines prescribed-rate interest on the unpaid purchase balance, reasonably estimated municipal taxes, and projected monthly common expenses. This is a carrying cost, not a reduction of the amount you owe for the condo.
When registration and the contractual closing requirements are met, your lawyer reconciles deposits, balance owing and adjustments. Your lender must still approve funding for the actual purchase. Mortgage payments normally begin after final closing.
The legal phases and occupancy dates come from the signed agreement and applicable Ontario rules. There is no universal number of months between interim occupancy and final closing.
Make the carrying cost visible
The ceiling in section 80(4) of the Ontario Condominium Act uses three components. Change the example to match an itemized builder estimate after your lawyer verifies the correct interest rate and contract terms.
All numbers are hypothetical until checked against your purchase agreement, Ontario's prescribed rate, the builder's estimate and the condominium disclosure statement.
Illustrative occupancy fee / month
$2,750This is a calculation of the three permitted fee components based on your inputs, not a quote from a developer and not a promise of what the builder will charge.
This worksheet is not a legal fee calculation. Ontario law sets the permitted components and a prescribed interest rate; the legally applicable rate is not automatically the 5% example shown. Actual fees, taxes, project budgets and the time between occupancy and final closing can change. Have an Ontario condominium lawyer check your builder's itemized statement.
Avoid the most expensive misunderstanding
Payments made under your purchase agreement before occupancy are ordinarily credited to the final purchase funds. Review the deposit schedule and trust arrangements.
Purchase-price contributionThe monthly interest component, estimated tax and projected common expenses pay for the interim stage. These are not principal repayments and do not, by themselves, reduce the contract price.
Not an equity paymentThe lawyer reconciles the remaining purchase balance, deposits and applicable adjustments. Mortgage financing, HST or rebate treatment, fees, development-charge clauses and other items need their own review.
Actual statement requiredContract dates are not just marketing dates
The Tarion Addendum includes a Statement of Critical Dates, with rules for tentative, firm and outside occupancy dates. Compensation and termination rights depend on those dates, written notices, exceptions and the signed contract—not a verbal sales-office estimate.
A renter might still owe rent on an existing lease during the transition. A homeowner might continue to carry an old mortgage while interim occupancy fees start. Budget a buffer rather than assuming the two moves will align perfectly.
Build in legal fees, developer adjustments and any HST or rebate issues for the intended use. A pre-approval obtained years earlier is not a guarantee of funding when legal title transfers; speak to your lender and lawyer.
Ontario Regulation 289/26 specifies revised purchase-agreement addenda for new condominium contracts signed starting January 1, 2027. Ask which dated forms apply to your agreement rather than relying on an older brochure.
Before the cooling-off period expires
Use this list during the new-construction purchase review. These checks are more useful than a general promise that occupancy is coming soon.
Ontario generally provides a 10-day new-condo cooling-off period after the required signed purchase agreement, disclosure and Condo Buyers’ Guide are received. Its start and any other rescission rights must be checked against the actual documents and law. A licensed Ontario lawyer should review the contract before deadlines pass.
Common questions
It is the period when a purchaser may take possession of a new condominium unit before the condominium declaration is registered and legal ownership can transfer. The buyer can be required to pay a monthly interim occupancy fee even though title and ordinary mortgage financing have not yet transferred.
No. The interim occupancy fee is not a payment of mortgage principal and is not automatically credited toward the purchase price. Earlier purchase deposits are different: they are credited toward the purchase funds, subject to the agreement and final statement.
Section 80(4) of the Ontario Condominium Act limits the monthly occupancy fee to the total of prescribed-rate interest calculated monthly on the unpaid purchase balance, reasonably estimated monthly municipal taxes, and projected monthly common expenses. The actual prescribed rate and amounts must be established from the applicable law and builder documents; the calculator here uses hypothetical inputs only.
Not necessarily. The Condominium Authority of Ontario explains that the monthly interim fee may still apply during the interim occupancy period whether or not you actually move in. Ask your lawyer to review what your purchase agreement requires.
In a typical purchase, the mortgage finances the final closing when title transfers after condominium registration, rather than the earlier interim-occupancy period. You still need satisfactory property-specific lending approval and must prepare for the final balance and adjustments.
Do not assume so. Permission to lease during interim occupancy can depend on the builder agreement, occupancy licence and other legal requirements. Have your lawyer confirm written permission and separately verify HST and rebate implications for the intended use.
Review the signed Tarion Addendum and its Statement of Critical Dates. Tentative and Firm dates, permitted notice periods, delayed-occupancy compensation and any termination rights depend on the specific dates and circumstances. A promised date changing does not always create automatic compensation.
For purchases covered by Ontario’s condominium buyer protections, the cooling-off period generally starts only after the buyer receives the fully signed purchase agreement, disclosure statement and CAO Condo Buyers’ Guide. Have your lawyer confirm the exact start, contract date and applicable documents; additional purchase-agreement forms change for contracts signed starting January 1, 2027.
Public sources · Checked October 15, 2026
This guide uses official Ontario guidance rather than a current developer price sheet, MLS resale data, a financing quote or an occupancy notice. The legal obligations and rates applicable to a particular purchase can differ by contract and date.
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