New Homes Are Coming to Markham in 2026 — Pre-Sale Buyer Guide
Michael John Lau and Neeraj Moolchandani are top REALTORS in Markham and leaders of the Kaizen Real Estate Team at eXp Realty, Luxury Division. With deep expertise in Markham and the Greater Toronto Area, they specialize in luxury properties, pre-listing preparation, and helping families find the right home in the right community. New single-family home construction, on hold for two to four years, has now begun pre-sales in Markham, with building activity expected to pick up in 2026. Here is what pre-sale buyers need to know before signing.
Michael John Lau, REALTOR® and top-rated Markham real estate agent, is seeing a significant resurgence in new home construction. After being on hold for two to four years, new single-family home pre-sales have officially begun in Markham. Building activity is expected to pick up significantly in 2026, with completions targeted for late Q3 and early Q4. While pre-construction buyers are excited, many do not fully understand the risks — deposit structures, tariff-related delays, and closing conditions. This guide positions you to make informed decisions before signing.
2026 New Build Snapshot: Pre-sales are active now, but occupancy is 2-3 years away. Tariffs on steel and lumber are impacting builder costs, potentially leading to price adjustments or delays. Buyers must be prepared for a long-term commitment and understand the Tarion warranty process.
For buyers considering a new build in Markham, the opportunity to customize and secure a brand-new home is appealing. However, the complexity of pre-construction contracts requires expert guidance. Michael John Lau and Neeraj Moolchandani help buyers navigate these complexities to protect their deposits and their future homes.
Understanding Deposit Structures in 2026
Unlike resale homes where you put down a deposit on closing, pre-construction requires staged deposits over the construction period.
- On Signing: Typically $25,000 to $50,000.
- 30 Days: Additional 5% to reach 10% total.
- 180 Days: Additional 5% to reach 15% total.
- Occupancy: Final balance due on closing (mortgage + remainder of down payment).
Some builders in Markham may offer extended deposit structures to help buyers manage cash flow during the construction phase.
Tariff Risks & Construction Delays
Global trade dynamics are impacting local construction. U.S. tariffs on steel, aluminum, and lumber are raising costs for builders.
Builders may pass increased material costs onto buyers through price adjustments before occupancy. Additionally, supply chain disruptions can delay closing dates. Your Agreement of Purchase and Sale should outline the builder's rights to delay and adjust prices.
Most contracts include clauses that protect the builder from delays caused by events beyond their control (e.g., pandemics, trade wars, labour shortages). Understanding these clauses is critical so you are not caught off guard by a delayed move-in date.
Closing Conditions & Tarion Warranty
New homes in Ontario are covered by the Tarion Warranty Corporation, but there are specific steps before you get your keys.
Before occupancy, you will walk through the home with a builder representative to identify any deficiencies. Michael and Neeraj recommend bringing a third-party home inspector for this step to ensure nothing is missed.
- Occupancy Closing: You move in and pay "occupancy fees" (similar to rent) until the building is registered.
- Final Closing: The building is registered with the city, you get title, and your mortgage begins.
This process can take several months. Budget for occupancy fees during this interim period.
Pre-Construction vs. Resale in Markham
Is a new build right for you? Compare the two options before committing.
| Feature | Pre-Construction | Resale Home |
|---|---|---|
| Move-In Time | 2–4 Years | 30–90 Days |
| Customization | High (Finishes/Layout) | Limited (Renovations needed) |
| Price | Locked in (mostly) | Negotiable |
| Warranty | Tarion (7-Year) | Sold "As-Is" |
| Land Transfer Tax | Pay on Final Closing | Pay on Closing |
| Development Charges | May apply (Check Cap) | None |
Step-by-Step: How to Buy Pre-Construction in Markham
Michael John Lau and Neeraj Moolchandani guide buyers through the pre-construction process to minimize risk.
Not all builders are created equal. Look for builders with a strong track record in Markham, on-time delivery history, and positive Tarion warranty records.
Never sign a builder's agreement without a real estate lawyer reviewing it. They can explain the termination clauses, delay provisions, and development charge caps.
The base price rarely includes everything. Budget an additional 10-15% for upgrades (flooring, cabinets, lighting) and closing costs (LTT, legal fees).
Get a pre-approval that is valid for the long term. Rates may change between signing and closing, so speak to a mortgage broker about rate hold options.
What Pre-Sale Buyers Ask Michael & Neeraj
There is a 10-day "cooling-off period" after signing where you can cancel for any reason. After that, cancelling is difficult and you may lose your deposit unless specific conditions in the contract are met.
Builders have the right to delay closing for specific reasons outlined in the contract. Tarion provides some protection for extended delays, but it is limited. Patience is key with pre-construction.
In Ontario, there is a cap on education development charges, but other municipal charges can vary. Ensure your lawyer reviews the "Schedule of Charges" in your agreement to know your maximum liability.
Michael John Lau and Neeraj Moolchandani are Markham's top REALTORS®. They help buyers evaluate builders, review contracts, and navigate the pre-construction process with confidence.
🏆 Michael John Lau & Neeraj Moolchandani — Awards & Recognition
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Pricing information is based on recent market data and is subject to change. Always consult directly with a licensed real estate professional and a qualified mortgage broker for the most current pricing, program eligibility, and availability. Not intended to solicit clients currently under contract with another brokerage.
