In short
In Ontario, Tarion administers it: one year for workmanship and materials, two years for things like water penetration and electrical, plumbing and heating systems, and seven years for major structural defects.
It also covers deposits and delayed closings.
What the warranty covers after you move in
Coverage starts on the date of possession and comes in three layers.
One year: defects in workmanship and materials, Ontario Building Code violations, and the home being fit to live in.
Two years: water getting in through the basement, foundation, windows or building envelope, defects in electrical, plumbing and heating systems, and Building Code violations that affect health and safety.
Seven years: major structural defects, meaning problems that cause a load-bearing part of the home to fail or that seriously affect your ability to use a significant part of it.
Some items are excluded, such as damage you cause, normal wear and tear, and defects in things you or a contractor you hired installed after possession. The Tarion warranty doesn't replace home insurance.
Protection before you close
For freehold homes bought on or after January 1, 2018, Tarion protects deposits up to $60,000 on homes priced at $600,000 or less, and up to 10% of the price, to a maximum of $100,000, on homes above $600,000.
Condo deposits must be held in trust under the Condominium Act, and Tarion protects up to $20,000 if a builder doesn't return them.
If the builder delays closing or occupancy beyond what the agreement allows, you may be able to claim compensation of $150 a day, up to $7,500 in total.
The pre-delivery inspection and your claim forms
Before you take possession, the builder must walk you through a pre-delivery inspection (PDI). Note every scratch, chip and missing item on the form; it records the home's condition on day one.
Tarion doesn't receive your PDI form, so outstanding items need to go on Tarion's warranty forms within the set windows after possession. Missing a deadline can limit what's covered, so check the current forms and dates in your Tarion homeowner portal.
Builders, not buyers, enrol new homes with Tarion. Since 2021, a separate body, the Home Construction Regulatory Authority (HCRA), licenses and regulates Ontario builders and vendors.
Common questions about new home warranty
What does Tarion cover on a new home?
Tarion backs a one-year warranty on workmanship and materials, a two-year warranty on water penetration and major systems, and a seven-year warranty on major structural defects. It also protects deposits and offers compensation for delayed closings. Coverage begins on the date you take possession.
How much of my deposit does Tarion protect?
For freehold homes signed since January 1, 2018, Tarion protects up to $60,000 on homes $600,000 or less, and 10% of the price up to $100,000 above that. Condo deposits are held in trust, with Tarion coverage up to $20,000.
What happens if my builder delays closing in Ontario?
If the delay goes beyond what your agreement allows, you may be entitled to compensation of $150 a day, up to $7,500 in total. The rules depend on the delay warranty terms in your purchase agreement, so review them with your lawyer.
Is a pre-delivery inspection required for new homes in Ontario?
Yes, the pre-delivery inspection is mandatory for new homes enrolled with Tarion. It documents the home's condition before you move in; any items still outstanding should then be submitted on Tarion's warranty forms. Bring a checklist and take photos. Bring a checklist.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.