Effective January 1, 2018, new home purchasers placing deposits on new non-condominium freehold homes will have increased deposit coverage of 10 per cent of the purchase price up to a maximum coverage of $100,000 with minimum coverage of $60,000. Previously, these buyers were only eligible for a maximum of $40,000 in deposit protection.
Following extensive public feedback earlier this year, the minimum threshold of $60,000 coverage ensures that freehold homes will have increased coverage that reflects the realities of today's new home marketplace.
Please note that condominium deposits are not part of the changes as condominium buyers benefit from additional protections through the Condominium Act, which requires all monies paid towards the purchase price above Tarion's coverage level of $20,000 to be held in trust.
New home buyers also benefited from the recent passage of the Strengthening Protection for Ontario Consumers Act, 2017, which extends the deposit protection provisions to include other payments, such as those made for upgrades and extras.
Thank you for providing your invaluable feedback! Your input was crucial to Tarion’s policy process. To view the fee schedule, please click here.