Pre‑Construction vs Resale Condos in Scarborough

Stuck between a shiny new build and a move-in-ready condo in Scarborough? You’re not alone. Choosing between pre-construction and resale can feel like comparing apples to a future orchard. Your priorities, cash flow, and timeline drive the right choice.

In this guide, you’ll learn how deposits, timelines, fees, risks, and lifestyle tradeoffs stack up in Scarborough. You’ll also get local context and simple checklists to move forward with confidence. Let’s dive in.

Pre-construction vs resale at a glance

Buying pre-construction means purchasing a unit before it exists. You agree to a price today and wait for construction, occupancy, and final closing. Buying resale means purchasing an existing condo with a known closing date and an established condo corporation.

Here is the core difference: pre-construction trades time and uncertainty for a brand-new home and staged deposits. Resale trades speed and clarity for a more straightforward process and immediate community information.

Upfront cash and deposit structures

Pre-construction deposits are staged. In the GTA, total deposits commonly land around about 10 to 20 percent of the purchase price, paid in installments over months or milestones. The initial deposit can be relatively small, followed by scheduled increases. The agreement will spell out where deposits are held and when they are refundable.

Resale deposits are simpler. Many Scarborough resale transactions use a deposit around 5 percent of the purchase price, paid shortly after your offer is accepted. The deposit goes into a trust account and becomes part of your payment at closing.

What this means for you:

• Pre-construction can be easier on cash flow upfront because deposits are spread out, but the total deposit is often higher.
• Resale requires less total cash upfront, but it is due quickly once your offer is accepted.
• Always confirm how deposits are held, when they are refundable, and what happens if the project is delayed or canceled.

Timelines, occupancy, and predictability

Pre-construction closings often happen years after you sign. Contracts include estimated occupancy windows, but delays are common. Many projects also have an interim occupancy period before the building is legally registered. During interim occupancy you may pay an occupancy fee and carry some utilities without having your mortgage start yet. Your lender and lawyer should guide you through this phase.

Resale timelines are shorter. Typical closings run 30 to 90 days depending on your offer. You know your move-in date, and you begin following the condo’s rules and budget immediately.

Key takeaway: pre-construction carries timeline and double-housing risk if you are paying rent or a mortgage elsewhere while also paying interim occupancy fees. Resale delivers faster, clearer possession.

Taxes and closing costs

HST applies to most new residential units. Builders usually present pricing that addresses HST and rebate eligibility, which can depend on whether you will live in the home or rent it out. Assignment sales can add HST complexity, so tax advice is important.

Resale purchases are typically exempt from HST. Both pre-construction and resale buyers pay land transfer tax at closing, along with legal and mortgage-related costs. Pre-construction assignment rights, if allowed, may involve extra fees.

Warranty, protections, and documents

New condos are usually covered by Ontario’s new home warranty program. Coverage can include deposit protection, workmanship, and major structural defects. Ask your lawyer to confirm the builder’s enrollment and what the coverage includes.

Resale buyers rely on the condo corporation’s records. Order a status certificate and have your lawyer review the financials, reserve fund, recent minutes, rules, and any lawsuits. This document is essential because it shows the building’s current health and helps you forecast fees.

Condo fees and long-term costs

In new buildings, initial condo fees may start lower because the first-year budget is a forecast. After turnover, fees may rise once real operating costs and reserve funding are set. Reserve fund studies begin after the corporation forms, so early buyers have limited history to review.

In resale buildings, you can review current fees, reserve fund balances, and recent budget changes through the status certificate. Older buildings sometimes offer larger units with fewer amenities, which can translate to a different fee profile than new amenity-rich towers.

Scarborough neighborhoods and lifestyle fit

Scarborough is a large, varied part of Toronto east of the core. You will see high-density nodes around Scarborough Town Centre, Eglinton and Kennedy, and parts of Danforth East, along with low-rise pockets and lakefront communities like Guildwood and West Rouge.

Where pre-construction clusters:

• Transit and shopping hubs such as Scarborough Town Centre and Kennedy.
• Intensification corridors like parts of Eglinton and Danforth where new mid and high-rise projects are proposed.
• Areas marketing future or improved transit access. Always verify current timelines with city updates.

Lifestyle tradeoffs to consider:

• Unit size and layout: New builds tend to be smaller with modern finishes and amenities. Resale units, especially in older buildings, can offer more space per dollar.
• Amenities: New developments often include concierge, gyms, study rooms, and rooftops. Resale buildings vary. Some offer fewer amenities but lower fees.
• Parks and schools: Many Scarborough neighborhoods offer convenient park access and established community services. If you value outdoor space over a larger amenity roster, resale in a quieter pocket could be a strong fit.
• Commute and transit: Compare your door-to-door commute. Some areas have quick access to GO stations or subway connections, while others are more car-oriented.
• Waterfront and green space: Eastern neighborhoods near Lake Ontario deliver a different feel than the denser Town Centre corridor.

Financing, interim occupancy, and assignments

Pre-construction financing has extra moving parts. Interim occupancy can mean paying occupancy fees before your mortgage starts. Lenders treat this differently than standard closings, so confirm how your payments will be structured.

Some pre-construction contracts allow assignments, meaning you can sell your agreement before final closing. Assignments often require the builder’s consent and may trigger fees and tax implications. Many builders limit or prohibit assignments. Read the assignment clause closely and get legal advice before planning to assign.

Resale financing is more straightforward. You close once, you move in, and your mortgage starts. If you need a longer close to coordinate a sale or a move, negotiate that at the offer stage.

Risk check: what to watch for

Pre-construction risks:

• Construction delays and shifting occupancy windows.
• Market changes between signing and closing that affect affordability.
• Interim occupancy fees and potential double housing costs.
• Deposit exposure if you cannot close and your agreement does not allow a release.
• Builder solvency risk, which can complicate timelines and protections.

Resale risks:

• Special assessments, fee increases, or legal disputes revealed in the status certificate.
• Aging building systems that may require upcoming capital work.

Across both paths, a skilled lawyer and agent can help you read the fine print, build buffers, and negotiate terms that fit your situation.

Practical checklists to use

Pre-construction buyer checklist

• Full agreement of purchase and sale with all schedules, reviewed by a real estate lawyer.
• Complete deposit schedule, trust or escrow details, and refund conditions.
• Estimated occupancy date, extension clauses, and interim occupancy language.
• Builder disclosure statement, status of approvals and financing.
• Warranty enrollment details and coverage.
• Assignment rules, fees, and HST implications.
• Floor plan, specifications, and finish lists, including standard vs upgrade items.
• Condo declaration and common elements overview when available.
• Financing pre-approval that accounts for interim occupancy.

Resale buyer checklist

• Status certificate and recent condominium minutes.
• Reserve fund balance and the most recent reserve fund study.
• Current budget and fee history, with any known special assessments.
• Property inspection where appropriate.
• Review of any ongoing litigation.
• Occupant status and rental rules if you are buying as an investment.

Which path fits your goals

Choose pre-construction if you want modern finishes and amenities, are comfortable with a longer timeline, and can handle staged deposits and interim occupancy. This can work well if your move is flexible and you value a brand-new home.

Choose resale if you need a predictable closing date, want to review the building’s financial health up front, or prefer larger layouts. This path is usually better when you are timing a sale, a lease ending, or a relocation with a firm move-in date.

Either way, bring in a team that knows Scarborough’s corridors, builders, and buildings. Local context matters when you balance lifestyle, commute, and long-term costs.

How we help Scarborough buyers

You get candid advice, local intel, and a clear plan. Our team reviews your deposit structure, timelines, and fee exposure, then maps options by neighborhood so you can compare lifestyle and transit tradeoffs. We coordinate your lawyer, lender, and closing strategy to reduce surprises.

If you are weighing pre-construction versus resale, connect with Dimitri Kalkounis to walk through your numbers and next steps.

FAQs

How do pre-construction deposits compare to resale in Scarborough

• Pre-construction deposits commonly total about 10 to 20 percent in stages, while many resale deals use about 5 percent due shortly after offer acceptance.

What is interim occupancy and why does it matter

• Interim occupancy is when you can move in before the building is legally registered, and you pay an occupancy fee instead of a mortgage until final closing.

Do I pay HST on a Scarborough condo purchase

• HST typically applies to new units, with rebates depending on intended use, while most resale purchases are generally exempt from HST.

What should I review in a resale condo’s status certificate

• Look for current fees, reserve fund balance, recent budgets and minutes, rules, any arrears, and any ongoing lawsuits that could affect costs.

Are new-build condo fees lower than resale fees

• New-build fees may start lower based on projected budgets, then often rise after turnover once real operating costs and reserve funding are set.

Can I assign a pre-construction condo contract in Scarborough

• It depends on your agreement; many builders require consent, charge assignment fees, and assignments can have HST implications.

How can I reduce risk when buying pre-construction

• Have a lawyer review the agreement, confirm deposit protections and timelines, secure financing that covers interim occupancy, and keep a financial buffer for delays.

Which Scarborough areas suit pre-construction buyers best

• Transit and shopping nodes like Scarborough Town Centre and Kennedy often see more new projects, while lake-adjacent pockets like Guildwood and West Rouge offer different lifestyle tradeoffs.