Skip to main content

Main navigation

Tarion Improving Warranty and Protection Program for New Home Buyers

Higher Warranty Compensation Limit and New Relocation Warranty Will Help Consumers

TORONTO – Tarion is making significant enhancements to the new home warranty coverage provided by builders in Ontario by increasing the warranty compensation limit to $400,000 for new freehold homes and creating a new Temporary Relocation Warranty.

“Our goal is to make sure that the new home warranty protection program in Ontario remains relevant and meaningful to consumers,” said Peter Balasubramanian, President and CEO of Tarion. “This increase in compensation will provide new freehold homeowners with the highest level of overall coverage available in Canada. It is another step towards ensuring homeowners have confidence and peace of mind when making that big purchase of a new home.” 

The increase of the warranty compensation limit from $300,000 (current) to $400,000, applies to freehold homes in which the homeowner owns the land and the home, such as detached, semi-detached homes and some townhouses. This increase will provide new freehold homeowners in Ontario with the highest overall coverage available in Canada when compared to coverage amounts set out by other provincial warranty programs.

The warranty compensation limit for condominium units will not increase, as those homes already benefit from additional coverage under the builder’s Common Elements warranty. The Common Elements warranty coverage for condominiums was increased to $3.5 million in 2021.

The new Temporary Relocation Warranty of $150/day will help defray costs homeowners may have to pay associated with temporary accommodations. This coverage for both condominium and freehold homeowners applies if a warranted repair renders the home uninhabitable and they are required to relocate while repairs or remediation is completed.   

The proposed improvements will come into effect on July 1, 2023, and will help homeowners who sign a purchase agreement on, or after, that date.

These changes build on previous improvements Tarion has made, such as launching a new homeowner e-learning hub, creating a simple and cost-effective mediation process for homeowners, and increasing the warranty compensation limit for condominium common elements and hazardous substances.

We are making these changes and creating a stronger new home warranty and protection program to protect all Ontarians and increase consumer confidence when making one of their most important purchases, a new home. 

For more information on these new measures, please visit,


About Tarion

Tarion is the independent non-profit organization that administers the Ontario New Home Warranties Plan Act. Tarion provides education, warranty support and dispute resolution services to Ontario’s new home buyers and builders, and has been providing consumer protection to Ontarians since 1976.

For media request please contact: