How long is Tarion coverage?

Coverage runs on one, two and seven year tiers on different elements of the home. Read the current Tarion homeowner information package for the exact list.

Do I have to enrol with Tarion myself?

No. The builder handles enrolment as part of the new-home process.

Are my deposits safe?

Deposits on new condo-form and freehold homes in Ontario are protected under Tarion up to statutory limits. Confirm the current limits with your lawyer.

Roughly how much are closing costs?

Totals vary by purchase price, first-time buyer status and the individual agreement. Ask your lawyer for a written estimate once your Spruce Trails price is confirmed.

Is HST extra on the purchase price?

For owner-occupiers it is normally rolled into the price because the rebates are assigned to the builder. Investors should confirm treatment with an accountant.

Smart Buyer Guides

Tarion Warranty and Closing Costs Explained

How Tarion works in Ontario and what closing costs to plan for on a new-build purchase.

9 min read · Updated 2026-07-23

Two topics catch first-time new-home buyers off guard more than anything else: Tarion warranty coverage, and the closing costs that arrive on top of the purchase price. Neither is complicated, but both deserve a real read before you sign. This guide explains how they work in Ontario, using Spruce Trails as an example without inventing any specific dollar figures.

What Tarion actually covers

Tarion administers Ontario's statutory new home warranty. Every enrolled home carries coverage in tiers: one year for defects in work or materials and Ontario Building Code violations, two years for elements like water penetration and electrical, plumbing and heating delivery systems, and seven years for major structural defects. The exact language belongs to Tarion, so read the current homeowner information package rather than relying on summaries.

Tarion also administers deposit protection on new condo-form and freehold homes. Your deposit is held in trust and protected up to the current statutory limits. Confirm the exact limits with your lawyer since they are updated from time to time.

The pre-delivery inspection is your leverage

The pre-delivery inspection, usually called the PDI, is your best opportunity to document any deficiencies in writing before you take possession. Anything you can see, touch, open or close on that day should be checked and any concern noted on the PDI form.

Closing costs to plan for

The purchase price is only part of what you pay to close. In Ontario a typical new-build closing includes:

Cost	What it is	Who sets it
Land transfer tax	Provincial tax on the transfer of real property, with a first-time buyer rebate up to a set amount	Province of Ontario
Legal fees and disbursements	Your lawyer's fees plus title search, insurance, registrations and courier costs	Your lawyer
Utility hook-ups	Setting up electricity, water and gas at your new address	Utility providers
Development and education levies	Municipal and school-board levies where the agreement passes them through	Municipality / boards
Tarion enrolment fee	Statutory enrolment for warranty coverage	Tarion
Occupancy adjustments	Prepaid property tax, utility deposits and other items assigned on closing	Your lawyer's statement

How HST usually works on a new home

For owner-occupiers, HST on a new home is generally rolled into the purchase price because the federal and Ontario new-housing rebates are assigned to the builder as part of the transaction. If you are buying to lease out, the rebate treatment is different and there is a separate rental rebate you may apply for yourself. Confirm your specific situation with an accountant before signing so there are no surprises at closing.

How this connects to Spruce Trails

Spruce Trails is under construction in the Heart Lake area of North Brampton and will be enrolled with Tarion like any other new home in Ontario. Pricing has not been released, so specific closing cost totals cannot be given for the community yet. Register on the main page and you will receive the actual price list, deposit schedule and any launch incentives as soon as they are shared.

Frequently asked questions

How long is Tarion coverage?: Coverage runs on one, two and seven year tiers on different elements of the home. Read the current Tarion homeowner information package for the exact list.
Do I have to enrol with Tarion myself?: No. The builder handles enrolment as part of the new-home process.
Are my deposits safe?: Deposits on new condo-form and freehold homes in Ontario are protected under Tarion up to statutory limits. Confirm the current limits with your lawyer.
Roughly how much are closing costs?: Totals vary by purchase price, first-time buyer status and the individual agreement. Ask your lawyer for a written estimate once your Spruce Trails price is confirmed.
Is HST extra on the purchase price?: For owner-occupiers it is normally rolled into the price because the rebates are assigned to the builder. Investors should confirm treatment with an accountant.

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Source tag: Guide CTA - tarion-warranty-and-closing-costs