Is a Realtor Free When Buying Pre-Construction in Ontario?

Usually, yes. On new construction in Ontario, builders typically pay the buyer's agent's commission, so having your own realtor usually costs the buyer nothing. It is not guaranteed on every project, so confirm it in writing for the home you are buying.

This guide explains who pays, what you should get in return, and why the review of the builder's agreement is the most valuable part.

Who Pays the Buyer's Agent on a New Build

Builders set aside a commission for buyers' agents as part of their sales budget. When you register an agent with the builder and buy through them, the builder pays that agent. The price you pay the builder is generally the same whether or not you bring an agent.

A few points to check:

• Registration timing. Many builders only recognise an agent registered on your first visit or first contact. Tell your agent before you walk into a sales office.
• Written agreement. Ontario requires a written buyer representation agreement between you and your agent's brokerage. It should say how the agent is paid and what happens if the builder does not pay.
• Project rules. Some projects or promotions have different commission terms. Ask before you sign.

Why the Builder's Sales Team Is Not Your Agent

The people in the sales office are often friendly and knowledgeable, but they work for the builder. Their job is to sell homes on the builder's terms. That is fine, as long as you know it.

Your own agent works for you. They can point out clauses that favour the builder, compare the project with others, and tell you when a deal does not fit your finances.

What You Should Get for Free

If representation costs you nothing, the value is in what the agent does. Here is what Harmeet Singh, REALTOR®, of Dream Villa Group offers his buyers:

• A free review of the builder's Agreement of Purchase and Sale (APS).
• A free lawyer review of the agreement.
• Help with rebates, including HST relief and land transfer tax refunds.
• Mortgage help, from pre-approval to closing.
• Help choosing decor and upgrades.
• Free help with assignment sales if you need to sell before closing.

He does not offer cash back.

The APS Review: Where the Real Value Is

The builder's APS decides most of what happens between signing and closing. A careful review looks at:

Deposits. How much, how often, and what happens if a payment is late. Test different structures with the deposit comparator.

Closing dates. The tentative and firm closing dates, how many times the builder can extend them, and the notice they must give under the Tarion addendum. Put a number on a delay with the delay cost calculator.

Development charges and levies. Whether increases are capped or passed to you at closing. The development charge exposure tool shows the risk.

HST and rebates. Advertised prices often assume the standard new housing rebate is assigned to the builder. If you are a first-time buyer, the 2026 HST relief on new homes can return up to 13% on the first $1,000,000, tapering to nil at $1,500,000. Check it with the HST rebate calculator.

Assignment clause. Whether you can sell before closing, the builder's fee, and any restrictions on marketing.

Condo specifics. For new condos, the disclosure statement, the budget for common expenses and interim occupancy fees. Estimate occupancy with the occupancy fee estimator.

Cooling-Off: Condos Yes, Freehold No

New condo buyers in Ontario get a 10-day cooling-off period under the Condominium Act, starting once they have the signed agreement and the disclosure statement. That is the window for a lawyer review.

Freehold homes, such as townhomes and detached homes in a subdivision, have no cooling-off period. Once you sign, you are bound. That makes a review before signing, or a lawyer review condition in the offer, even more important.

Protection After You Sign

New Ontario homes come with Tarion warranty coverage: one year for workmanship and materials, two years for items such as water penetration and building systems, and seven years for major structural defects. Your agent should help you record issues at the pre-delivery inspection, using a list like the PDI checklist.

First-time buyers can also claim a land transfer tax refund of up to $4,000 in Ontario, plus up to $4,475 in Toronto. The land transfer tax calculator shows your amount.

Common Myths About Using a Realtor on a New Build

"The builder will give me a better price without an agent." Builders generally set the same price for buyers with and without an agent, because the commission is already part of their sales budget. Ask the builder directly if you are unsure.

"The sales office already explained the contract." They explained it from the builder's side. A review for you looks for the clauses that could cost you money or time.

"I only need a lawyer at closing." The lawyer review matters most before you are bound, not months later when the terms are fixed.

"I can add an agent later." Many builders will not recognise an agent added after your first visit.

When It Might Not Be Free

Rarely, a builder may not pay a buyer's agent, for example on certain private sales or special releases. In that case, your buyer representation agreement decides what you owe. Read it, ask questions, and get the answer in writing before you sign anything with the builder.

Next Steps

Before you visit a sales office, run the closing day readiness check and the closing costs calculator, and browse the 163 communities in the project explorer. If you want an agreement read, or want Harmeet registered before your first visit, send a message through the contact form.