Buying a new construction home in London Ontario is fundamentally different from buying resale — the process, the timeline, the costs, and the protections all work differently. If you're used to the resale market where you make an offer, close in 30–90 days, and move in, new construction will feel like a different transaction entirely.
This guide walks you through every stage: from signing your Agreement of Purchase and Sale through construction, closing, and move-in. It covers the Tarion warranty, how builder incentives like Heathwoods' $230,000 in combined savings are structured, what closing costs actually look like, and what questions to ask before you sign.
The New Construction Buying Timeline
New construction has a longer and more structured process than resale. Here's the full lifecycle from first contact to keys in hand:
Deposit & Agreement of Purchase and Sale (APS)
You sign the Agreement of Purchase and Sale and pay your deposit — typically 5–10% of the purchase price, structured as multiple installments over 30–120 days. At Heathwoods, your APS also locks in your HST rebate eligibility and builder incentive. Ontario law gives you a 10-day cooling-off period after signing to review the agreement with your lawyer.
Pre-Construction & Permitting
The builder finalizes permits, selects finishes with you (colour packages, upgrades, fixture selections), and begins site preparation. This is when you make your interior selections — the decisions you make here are permanent. Choose carefully; changes after framing begins are typically not permitted or carry significant upgrade premiums.
Active Construction
Foundation, framing, mechanical rough-in, drywall, finishes — the build progresses in stages. Your builder provides milestone updates. You'll have a pre-drywall walkthrough to inspect framing and mechanical installations before walls close. At Heathwoods, Halcyon Built provides a staged construction timeline with regular owner communications.
Final Walkthrough & Deficiency List
Your Pre-Delivery Inspection (PDI) is a formal walkthrough with the builder to document any incomplete items or deficiencies before possession. These go on a list that the builder must address. Your PDI is your primary opportunity to identify issues before you own the home — bring a detailed checklist and take photos.
Legal Close & Closing Costs
Your real estate lawyer manages the closing. You receive a statement of adjustments covering purchase price, deposits paid, closing costs (HST net of rebate, development charges, Tarion fee, land transfer tax, legal fees). Your mortgage funds, your balance owing is paid, and ownership transfers to you.
Possession
You receive your keys. The Tarion warranty activates from your possession date — document any issues in writing within the first 30 days (Year 1 warranty form) and again in month 11–12 (Year 2 warranty form). Your builder must address all warranted deficiencies within the legislated timeframes.
At The Heathwoods at Lambeth, current lots are in Phase 4 — the final phase. Buyers signing APS now are targeting possession in late 2026 to mid-2027. Your APS must be signed by March 31, 2027 to qualify for the Ontario HST rebate — the construction timeline and the rebate deadline are aligned for current buyers.
Tarion Warranty Coverage in Ontario
Every new home built by a registered Ontario builder comes with mandatory Tarion warranty coverage. This is not optional — it's legislated under the Ontario New Home Warranties Plan Act. Understanding it tells you exactly what protection you have if anything goes wrong.
Covers defects in materials and workmanship. Includes items like doors that don't seal properly, flooring issues, drywall cracks, trim defects, and appliance hook-ups. Submit your list within 30 days and again at month 11–12.
Covers defects in plumbing, electrical, heating/cooling systems, and Ontario Building Code violations. A furnace that fails in Year 1 or an electrical panel that trips repeatedly — covered. Submit at month 13–24.
Covers major structural defects that materially affect the use of the building as a home — foundation failures, structural framing failures, load-bearing issues. The most significant protection in the package.
Tarion also provides deposit protection: if your builder fails to deliver your home (insolvency, inability to complete), Tarion provides up to $600,000 in deposit coverage. This protection is one of the most underappreciated features of buying new construction in Ontario vs. purchasing pre-construction in provinces without equivalent legislation.
All Tarion-registered builders are listed at tarion.com. Check your builder before you sign. Halcyon Built (the builder at Heathwoods) is a registered Tarion builder. You can view their registration and history directly on Tarion's public registry.
How Builder Incentives Work
Builder incentives are direct discounts on the purchase price — separate from government programs like the HST rebate. Builders use incentives to move inventory, reward early commitment, or respond to market conditions. They're applied through your APS, not claimed separately.
At The Heathwoods at Lambeth, the current incentive is a $100,000 builder discount applied directly at closing through your agreement. This stacks with the Ontario HST rebate for a combined total of $230,000 in savings:
A few things to understand about builder incentives:
- They're time-limited. Incentives are tied to specific phases or inventory windows. The $100,000 Heathwoods incentive is available now on Phase 4 lots — it's not a permanent feature of the project.
- They don't affect the Tarion warranty. Your warranty coverage is based on the full purchase price regardless of incentives applied.
- They may affect your mortgage. Your lender will appraise the home at fair market value. If incentives make your effective purchase price lower than the appraised value, your down payment calculation may be affected. Discuss this with your mortgage broker before signing.
- They're separate from HST. HST is calculated on the full purchase price — not the incentive-adjusted figure. The rebate is then applied on top. Both are separate programs that run independently.
Closing Costs for New Construction in Ontario
New construction closing costs in Ontario are meaningfully different from resale — and in 2026, the HST rebate changes the math significantly. Here's what to budget for on a Heathwoods purchase at $1,258,000:
| Cost Item | How It Works | Approximate Amount |
|---|---|---|
| HST (13%) | Gross HST on purchase price | ~$163,540 |
| HST Rebate (2026) | Applied by builder at closing — no filing | −$130,000 |
| Net HST Paid | What you actually pay at closing | ~$33,540 |
| Development Charges | Municipal/county levy; builder may cap or absorb partially | $20,000–$45,000 |
| Tarion Enrolment Fee | Mandatory new home warranty registration | ~$1,400–$2,000 |
| Ontario Land Transfer Tax | Provincial LTT on purchase price | ~$20,475 (at $1.258M) |
| Legal Fees | Real estate lawyer for closing | $1,500–$2,500 |
| Title Insurance | One-time premium | ~$300–$500 |
| Builder Incentive | Applied directly at closing against purchase | −$100,000 |
| Net closing benefit (HST rebate + builder incentive) | −$230,000 | |
Development charges vary significantly by municipality. Ask your builder exactly what development charges apply and whether any are capped or absorbed — this is a negotiable point on some projects. At Heathwoods, confirm the current development charge structure with the sales team.
New construction often comes with upgrade costs that are separate from the base price — lot premiums for corner lots or backing onto green space, finish upgrades, structural options. Budget for these before you sign, not after. The base price gets you a move-in-ready home; extras are optional but easy to accumulate.
Questions to Ask Before You Sign
The APS is a legally binding contract — changes after signing are expensive and sometimes impossible. Before you commit, get answers to these:
- What is the firm possession date? Or is it conditional on construction milestones? Understand what triggers a delayed closing and what compensation applies.
- What are the capped closing costs? Some builders cap development charges; others pass through the full levy. Get this in writing in the APS.
- What's included in the base price vs. what's an upgrade? Review the schedule of finishes carefully. "Standard" varies enormously between builders.
- When are the selection appointments? Upgrade costs can add $50,000–$150,000 to a new build. Know what the process looks like before you sign so you're not surprised.
- Is my deposit held in trust? In Ontario, new home deposits must be held in trust by the builder's law firm — not co-mingled with builder operating funds. Confirm this in your APS review.
- What happens if the builder misses the closing date? The APS should have penalty provisions or delayed closing compensation — typically $150/day after a threshold period under ONHWP rules.
Up to $130K in Savings
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Enter your home price and down payment — see HST rebate and mortgage savings side by side.
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HST Rebate Guide 2026
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