Trying to decide between a pre‑construction condo and a resale unit in Liberty Village? You are not alone. With strong rental demand and a fast-moving market, the right choice depends on your timeline, cash flow, and risk tolerance. In this guide, you will compare pricing, taxes, timelines, warranties, and risks so you can choose with confidence. Let’s dive in.
Liberty Village at a glance
Liberty Village is a high‑demand downtown Toronto pocket known for mid and high‑rise condos, converted lofts, and quick access to employment hubs. Many buyers are first‑timers and investors who value transit, walkability, and lifestyle amenities. Strong rental demand often means short lease‑up periods, which supports investor interest in both new and resale units.
Tight supply for move‑in ready homes can push resale prices higher in hot markets. Pre‑construction can offer lower entry pricing for early buyers, but it introduces construction timelines and delivery risks. Your best fit starts with understanding how the numbers and timing differ.
Pre‑construction vs resale: quick overview
- Pre‑construction: staged deposits, longer wait, interim occupancy before title transfer, HST applies with possible rebates, and statutory new‑home warranty coverage.
- Resale: faster close, full mortgage at completion, provincial and municipal land transfer tax at closing, no HST on the purchase price, and no new‑home warranty.
If you want certainty of timing and immediate occupancy, resale usually wins. If you want new finishes, deposit staging, and potential price growth before final closing, pre‑construction may fit.
Pricing and total cost
Pre‑construction pricing
Builders often launch early suites below expected future market value to stimulate sales, with price escalations as phases sell. Base prices may exclude parking, a locker, and upgrades. Incentives can offset some costs, but you should compare apples to apples across projects and phases.
Your “all‑in” price includes the unit, parking and locker if applicable, common upgrades, and HST treatment. Ask for a detailed price sheet and itemize everything you expect to include.
Resale pricing
Resale reflects the current market and can be negotiated. Comparable sales are easier to verify, and you can tour the unit to confirm condition and finishes. Parking and lockers may be included or sold separately. Your all‑in should also account for closing costs like land transfer taxes.
What to compare line by line
- Price per square foot after adding parking, locker, and typical upgrades
- Incentives or credits offered by the seller or builder
- HST for new units vs no HST on resale purchases
- Closing period costs: interim occupancy fees for pre‑construction vs land transfer taxes for resale at closing
Timelines and cash flow
Pre‑construction timeline
- Sign the agreement and pay staged deposits over 6 to 24 months depending on the project.
- Construction period is often 1 to 4 years.
- Interim occupancy begins after occupancy permits are issued. You can move in or rent out if permitted, but you do not take title yet.
- Final closing occurs when the condo registers. Mortgage funding typically happens here.
Resale timeline
- Make an offer with conditions for financing and inspection as needed.
- Typical closing is 30 to 90 days. You take title at closing and can occupy immediately after.
- Your full down payment and mortgage funding occur at closing.
Cash flow differences
- Pre‑construction: deposits now, then possible months of interim occupancy payments before final closing. Mortgage funding usually starts at final closing. Rates can change during the build period, so factor interest rate risk into your plan.
- Resale: full mortgage, down payment, and land transfer taxes are due at closing. Condo fees and carrying costs begin immediately after.
Assignments in Ontario
What an assignment is
An assignment is the sale of your contractual rights to buy a pre‑construction unit before final closing. Many projects allow it with conditions, such as developer approval, an assignment fee, and formal paperwork. Some agreements restrict or prohibit assignments, or limit marketing.
How assignments work in practice
- Review your purchase agreement to confirm assignment rights, fees, and timing.
- Find an assignee and submit the assignment package for developer approval if required.
- Complete legal documents and pay any applicable assignment fees.
Assignment markets are cyclical. In hot markets, investors have used assignments to capture appreciation before closing. In cooler markets, demand can be limited.
Taxes and financing notes
Assignment profits may be treated as business income depending on your situation. Lenders have specific policies for assignments. Speak with an accountant and mortgage professional early to avoid surprises.
Interim occupancy explained
Interim occupancy occurs after the builder secures occupancy permits but before the condo is registered and title transfers to you. During this period, you typically pay an occupancy fee that covers estimated common element maintenance and interest on the unpaid balance. This is not a mortgage payment.
Risks include longer interim periods than expected and higher‑than‑estimated fees. During interim occupancy, the condo corporation may still be under developer control and the reserve fund may be minimal. Ask for a sample occupancy fee calculation and a realistic timeline to registration before you commit.
Warranty and protection
New‑build coverage
In Ontario, new condominiums are covered by a statutory new‑home warranty program administered by the provincial regulator. Typical coverage includes:
- One year for defects in work and materials and against unauthorized substitutions
- Two years for defects in electrical, plumbing, heating, water penetration, and building envelope components
- Seven years for major structural defects
There is also deposit protection subject to program limits and conditions. Builders may offer additional workmanship assurances, but the process for claims and builder responsiveness can vary. Treat warranty as a safety net, not a substitute for due diligence.
Resale protections
Resale condos do not have a statutory new‑home warranty. You rely on the status certificate, building financials, reserve fund studies, and unit inspections to evaluate risk. Your lawyer’s review is critical to uncover special assessments, litigation, or governance concerns.
Taxes you should expect
- Pre‑construction: HST applies to new units. Eligibility for an HST rebate depends on whether you occupy the unit as your primary residence or on specific rental criteria. Speak with your lawyer or accountant to review your eligibility and paperwork.
- Resale: No HST on the purchase price. You will pay provincial and City of Toronto land transfer taxes at closing. Budget for both when you calculate total cash needed on closing day.
Risk snapshot
Pre‑construction risk factors
- Construction delays that push occupancy and final closing
- Interim occupancy fees that last longer or cost more than expected
- Developer solvency risk, even with deposit protections in place
- Market changes between contract signing and final closing
- Assignment restrictions or fees that limit exit options
- Mortgage rule changes or interest rate increases affecting qualification
Resale risk factors
- Building financial health, reserve fund strength, and special assessment risk
- Latent defects that a unit inspection may not reveal
- Rental market fluctuations for investor outcomes
- Title or legal encumbrances affecting the condominium corporation
Due‑diligence checklist
For both paths
- Get mortgage pre‑approval and ask how the lender handles pre‑construction closings and interim occupancy.
- Work with a Toronto condo lawyer to review agreements, assignments, and status certificates.
- Build a closing budget that includes land transfer taxes for resale and interim occupancy for pre‑construction.
For pre‑construction
- Verify the developer’s track record, delivery timelines, and past projects.
- Confirm the full deposit schedule, how deposits are held, and get receipts.
- Review assignment rights, fees, and timelines. Plan your exit strategy.
- Ask for a sample occupancy fee calculation and realistic registration timing.
- Review warranty coverage and deposit protection details for the project.
For resale
- Order and review the status certificate and all condo documents through your lawyer.
- Book a professional condo inspection when possible.
- Validate pricing with recent Liberty Village comparable sales.
Which option fits your goals
- Choose pre‑construction if you value new finishes, want to stage deposits over time, and can handle a multi‑year timeline with interim occupancy. It can suit investors who plan for appreciation before final closing or long‑term rental holds.
- Choose resale if you need certainty of possession, want to evaluate the exact unit and building health, or prefer to lock in financing and move within weeks to months. It often fits first‑time buyers who value predictable cash flow and immediate use.
How OwnIt helps you decide
You deserve a plan that matches your timeline, budget, and risk profile. OwnIt specializes in downtown Toronto condos, including Liberty Village, and guides you through pricing, contracts, status reviews, and assignment strategies. Whether you are buying new or resale, you get a clear process, local insight, and responsive support from first call to closing and beyond.
Ready to compare specific buildings, deposit schedules, or status certificates side by side? Let’s build your plan with OwnIt.ca.
FAQs
What is the main difference between pre‑construction and resale condos in Liberty Village?
- Pre‑construction involves staged deposits, a longer wait, interim occupancy, HST, and warranty coverage, while resale offers faster closing, land transfer taxes at closing, no HST on price, and no new‑home warranty.
How do interim occupancy fees work for new condos in Toronto?
- During interim occupancy you pay a monthly fee to the builder, typically covering estimated condo fees and interest on the unpaid balance, until the building registers and you take title.
Can I assign my pre‑construction condo before final closing?
- Often yes, but it depends on your agreement. Many projects require developer approval and charge assignment fees, and some contracts restrict or prohibit assignments.
Do I pay HST when buying a resale condo in Toronto?
- No, resale condo purchases are not subject to HST on the price. You will pay provincial and City of Toronto land transfer taxes at closing.
What warranty protection do new Toronto condos have?
- New condos in Ontario typically have one‑, two‑, and seven‑year statutory coverage for specified defects and deposit protection, subject to program rules. Resale condos do not have this statutory warranty.
Is resale better for first‑time buyers who want certainty?
- Often yes. Resale closings are typically 30 to 90 days, you can inspect the exact unit, and you lock in financing at closing for immediate possession.
What should investors consider when choosing between new and resale units?
- Compare rental timelines, deposit staging vs immediate capital needs, assignment options, market conditions at delivery, and the liquidity of each exit path.
