New homeowners at Midhurst Valley.

Buying a new home, whether it’s move-in ready or pre-construction, is an exciting step, but it can also feel overwhelming, especially with so many unfamiliar terms and processes. We understand how daunting it can be, so we’ve put together a simple guide to help you get familiar with the must-know terms. A little knowledge can go a long way in helping you feel more confident, informed, and ready for what’s ahead.

Pre-Approval
Getting pre-approved for a mortgage is an important first step. A lender will review your finances to determine how much you can afford and how much you’re eligible to borrow. This helps set a clear budget and shows sellers you’re a serious buyer.

Mortgage Rates & Terms
Rates: When choosing a mortgage, you’ll decide between a fixed or variable interest rate. A fixed rate stays the same throughout your term (commonly 5 years), providing predictable payments. A variable rate can fluctuate with the Bank of Canada’s rates, meaning your payments may go up or down.
Terms: Mortgage terms can vary widely from just a few months to 5 years or longer. Most Canadian homeowners opt for a short-term mortgage (5 years or less), while a long-term mortgage exceeds 5 years. There’s also the option of a convertible term mortgage, a short-term mortgage that your lender can convert into a long-term one if needed.
Get more details here.

Get familiar with the must-know terms and feel confident about your next steps.

Down Payment vs Deposit
A deposit is a sum of money that is paid upfront after your offer to purchase a home is accepted. It forms part of the overall down payment, secures the sale and shows commitment. The full deposit schedule is included in your contract.

The down payment is the amount you contribute upfront toward the purchase price. The minimum amount you need for your down payment depends on the purchase price of the home.
Minimum Down Payment Requirements in Canada:
$500,000 or less: 5% of the purchase price
$500,000–$1.5 million: 5% on the first $500,000 + 10% on the remainder
Over $1.5 million: 20% of the purchase price
Note: If your down payment is less than 20%, mortgage loan insurance is usually required.

Agreement of Purchase and Sale (APS)
This contract outlines the price, payment terms, closing date, and what’s included in the home. Always review it with a real estate lawyer before signing.

Buying Pre-Construction vs. Move-In Ready
Buying pre-construction means purchasing before the home is built. You can choose your lot, layout, and finishes, then move in once everything is complete. It’s a great option if you need time to arrange financing or sell your current home. Pre-construction offers flexibility and the personalization today’s buyers are looking for. Explore opportunities at Courts of King’s Bay or Allegro Aurora to see if a pre-construction home is right for you.

Prefer not to wait? Take a look at move-in ready homes at Midhurst Valley or Clarehaven Estates. These newly built, fully finished homes are ideal if you’re eager to settle in quickly. You can tour the actual home, know exactly what you’re getting, and enjoy the convenience of a faster closing.

Both options offer the benefits of a brand-new home, without the need for renovations or repairs, it really comes down to your timeline, preferences, and priorities.

Buying a move-in ready home means you can move in quickly, while enjoying all the benefits of new construction.

Types of Ownership
When buying a new home, it’s important to understand the different types of ownership.
Freehold Ownership means you own both the home and the land it sits on. You’re fully responsible for maintenance, but you also have the freedom to personalize your property: adding your own fencing, landscaping, or outdoor features without needing approval.
Condominium Ownership includes ownership of your individual unit, while shared spaces, like hallways, lobbies, or green areas, are considered common elements and maintained collectively through monthly condo fees.
Common Element Condominiums are a hybrid, where you own your freehold home but share ownership of certain amenities or areas, like private roads, parks, or driveways, with other homeowners.

Builder Upgrades
Many new homes come with standard finishes. You can upgrade items like flooring, cabinets, or lighting for an added cost. Ask for an upgrade price list and confirm what’s included in the base price.

Personalize your Allegro home with fabulous upgrades.

Closing Costs
In addition to your down payment, expect to budget 1.5%–4% of the home’s price for things like:

• Legal fees
• Land transfer tax
• Home inspection fees
• CHMC mortgage insurance
• Title insurance
• Developmental charges
• HST (HST Rebates are available for qualified purchasers)
• Municipal Land Transfer Tax (MLTT) (if buying in Toronto)
• Tarion enrolment
• Home Construction Regulatory Authority (HCRA) oversight fee
• Utility hookups
• Applicable government charges

Ask your builder for a detailed breakdown early in the process.

Tarion Warranty
Most new homes in Ontario are covered under the Tarion New Home Warranty, which protects against certain defects. Make sure you understand what’s included.

New home in Allegro in downtown Aurora.

Closing
This is when the home officially becomes yours. You pay the remaining balance (via mortgage and down payment), cover closing costs, and receive the keys.

Rebates for First-Time Buyers
If this is your first home and it’s your primary residence, you may qualify for government rebates or tax incentives. To find out more contact our financial partners.

Look into the rebates and incentives available for first-time home buyers

Buying a new home comes with exciting benefits like customization, energy-efficient design, and warranty protection. Understanding key terms will help you navigate the process with confidence, avoid surprises, and make informed choices every step of the way.

Now that we’ve unraveled some of the key homebuying terms, you’re ready to explore new homes in our communities. Take a closer look at geranium.com.