Blog > New Homes Are Coming to Markham in 2026 Here's What Pre-Sale Buyers Need to Know Before Signing
New Homes Are Coming to Markham in 2026 Here's What Pre-Sale Buyers Need to Know Before Signing
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New Homes Are Coming to Markham in 2026 — Here's What Pre-Sale Buyers Need to Know Before Signing
New single-family home construction, on hold for two to four years, has now begun pre-sales in Markham. With completions targeted for late Q3 and early Q4, here's what you need to know about deposits, tariffs, and closing conditions.
The Return of New Construction in Markham
After a hiatus of two to four years, new single-family home construction is finally restarting in Markham. Pre-sales have begun, building activity is expected to pick up throughout 2026, and completions are targeted for late Q3 and early Q4. For buyers, this represents a rare opportunity to secure a brand-new home — but it also comes with specific risks that require careful navigation.
The 2026 Opportunity: Pre-sale buyers can lock in today's pricing for homes that won't complete until late 2026. However, tariff-related delays and deposit structures require careful review before signing any agreement.
As your REALTOR® and CPA, I recommend thorough due diligence on builder reputation, contract terms, and closing cost estimates.
Understanding Pre-Sale Risks in 2026
Pre-construction buying differs significantly from resale transactions. The extended timeline between signing and closing introduces unique risks that buyers must understand:
Typical deposits range from 20-30% paid in installments over 12-24 months. Understand the schedule before committing.
U.S. tariffs on steel, aluminum, and lumber may cause construction delays or specification changes. Build flexibility into your timeline.
Occupancy closings (early move-in) vs. final closings (title transfer) have different cost implications. Know which applies to your purchase.
All new homes in Ontario come with Tarion warranty coverage. Understand what's covered (1-year, 2-year, 7-year) before closing.
Markham New Construction Timeline
Completion Dates
Structure
Hiatus
These timelines indicate a compressed construction schedule. Buyers should prepare for potential delays while also benefiting from renewed builder activity and competition.
Deposit Structures: What to Expect
Pre-sale deposits are structured differently than resale down payments. Here's a typical schedule for Markham new homes in 2026:
✅ Typical Deposit Schedule
- On Signing: 5% of purchase price
- 30 Days: Additional 5%
- 180 Days: Additional 5%
- 365 Days: Additional 5%
- Total: 20% (varies by builder and project)
Important: Deposits are typically held in trust by the builder's lawyer until closing. Ensure your agreement specifies trust conditions clearly.
Tariff Impact on New Construction
U.S. tariffs on critical building materials (steel, aluminum, lumber) are affecting GTA development costs. For pre-sale buyers, this creates two potential scenarios:
| Risk Factor | Potential Impact | Mitigation Strategy |
|---|---|---|
| Material Costs | Price Increases | Lock in price early; review escalation clauses |
| Supply Chain | Construction Delays | Build flexibility into move-in timeline |
| Specifications | Material Substitutions | Review allowance clauses for finishes |
| Closing Costs | Higher Levies | Budget extra 2-5% for potential levy increases |
Occupancy vs. Final Closing
Many pre-construction condos and some freehold homes involve an occupancy closing before final title transfer. Understanding the difference is critical for budgeting:
Occupancy Closing
You move into the unit but don't own it yet. You pay occupancy fees (similar to rent) to the builder until final closing. These fees typically cover estimated taxes, common expenses, and interest on the unpaid balance.
Final Closing
Title transfers to you, your mortgage begins, and you start paying property taxes directly. This is when you receive the keys permanently and own the home outright.
⚠️ Key Closing Cost Considerations
- Development Levies: Can increase between signing and closing. Cap clauses may limit exposure.
- Land Transfer Tax: Payable on final closing (first-time buyers may qualify for rebates).
- Tarion Enrollment: Approximately $2,000+ for new home warranty enrollment.
- Utility Hookups: Some builders charge separately for water, gas, and electrical connections.
- Legal Fees: Budget $1,500-$2,500 for closing legal services.
Frequently Asked Questions
Are pre-sale deposits protected?
Yes, if the builder is registered with Tarion. Deposits held in trust are protected up to certain limits ($20,000 for freehold homes, varying amounts for condos). Always verify builder registration before signing.
What happens if construction is delayed?
Builders have rights to extend closing dates under certain conditions. Tarion provides delayed closing compensation for specific scenarios. Review your agreement's force majeure and delay clauses carefully.
Can I sell my pre-construction home before closing?
Assignment sales (selling before closing) may be permitted depending on your agreement. Some builders prohibit assignments or charge fees. Discuss this with your lawyer before signing.
How do tariffs affect my closing costs?
Tariffs may increase builder costs, which could be passed through as higher development levies. Some agreements cap levy increases; others don't. Budget an extra 2-5% for potential levy adjustments.
Should I hire a lawyer before signing?
Absolutely. Have a real estate lawyer review the Agreement of Purchase and Sale before signing. They can identify unfavorable clauses, explain deposit protections, and advise on closing cost estimates.
Considering New Construction in Markham?
Michael John Lau provides trusted guidance for pre-sale buyers throughout Markham. With CPA-level financial analysis and deep knowledge of builder contracts, we'll help you navigate deposits, delays, and closing conditions confidently.
🏆 Michael John Lau — Awards & Recognition
Michael John Lau is a licensed REALTOR® serving buyers, sellers, and investors in Markham, Ontario and the Greater Toronto Area. New construction timelines and pricing are based on builder information and are subject to change. This article is for informational purposes only and does not constitute legal or financial advice. Always consult directly with a licensed real estate professional, qualified lawyer, and financial advisor before signing any pre-construction agreements. Not intended to solicit clients currently under contract with another brokerage.
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