(Toronto, ON – June 20, 2006)  Tarion Warranty Corporation (Tarion) today announced that total warranty coverage for new homes in Ontario will increase from $150,000 to $300,000 for all purchasers who take possession of a new home on or after July 1, 2006.

There will be no additional cost for consumers or builders associated with the coverage increase as the fee for enrolling a new home in the Tarion-administered mandatory warranty program will remain the same. 

“This is a significant benefit to new home buyers and builders in Ontario that reflects the robust housing market and the increasing price of new homes,” said Greg Gee, President and CEO of Tarion.  “While most homeowners will never need this amount of coverage for warranty-related issues in their new homes, the increase to $300,000 gives purchasers the added confidence of knowing that they are covered even if a major repair is required.”  
  
The average price for a new single-family home in Ontario during 2005 was $306,000, with warranty enrolment fees ranging from $325.00 for homes priced at $100,000 or less, to $750.00 for those selling for $500,000 or more.

“We welcome any increase in consumer protection,” said Gerry Phillips, Ontario Minister of Government Services.  “This demonstrates Tarion’s continued commitment to improving protection for the new home buyer.”

The increased coverage will apply to all purchasers with a date of possession on or after July 1, 2006 regardless of when they entered into their Agreement of Purchase and Sale. 

“For the past 30 years, new homeowners in Ontario have been protected by a statutory warranty that has evolved to become one of the most comprehensive of its kind in North America,” said Mr. Gee.  “This coverage increase will make Tarion the provincial leader in aggregate warranty coverage in Canada.”

Tarion has introduced a number of important initiatives in recent years, designed to keep pace with the changing demands of consumers, builders and the new home industry.  These include:

• A Contact Centre staffed by knowledgeable customer service representatives to ensure Tarion’s services are accessible to Ontarians wherever they live in the province. In 2005, 270,000 calls were managed by the Centre, including general warranty-related questions as well as inquiries specific to individual homeowner files.

• Seminars for New Home Buyers, designed to help consumers navigate the new home buying process and provide them with useful information on when and how to access the statutory warranty.  More than 2,200 people have attended these seminars since their introduction in 2005.

• A walk-in Customer Centre, located in a Toronto retail setting, that allows consumers and builders to meet face-to-face with Tarion staff about a variety of issues or to drop off forms related to the statutory warranty.  On average, 600 people visit the Customer Centre each month.

• A user-friendly website, www.tarion.com, which features a broad range of information about statutory warranty protection, a “Find a Builder” area with information about builders along with their customer service and claims histories, as well as helpful publications which can be easily downloaded. The site averaged 1,700 visits per day in 2005.

• A set of Customer Service Standards which include mandatory requirements for builders in terms of after-sales service. These standards include the introduction of a standard Homeowner Information Package, a required Pre-Delivery Inspection, and specific timelines within which builders must provide necessary after-sales service.

• Construction Performance Guidelines which provide factual information to assist with the resolution of warranty-related issues and help new homeowners understand what is and is not included in their statutory warranty coverage.

2006 marks the 30th anniversary of Tarion Warranty Corporation, a private corporation established in 1976 to serve as the Regulator of the home building industry in Ontario. In this role, Tarion licenses all home and condominium builders pursuant to provincial legislation. This statute requires home builders to provide purchasers with warranty coverage that is guaranteed by Tarion.  The Corporation also establishes minimum time standards for after-sales service, and adjudicates issues between homeowners and builders. 

-30-

For additional information, contact:

Janice Wong, Senior Manager, Corporate Communications
Tarion Warranty Corporation
Phone: 416-229-3863
E-mail: janice.wong@tarion.com