Are you debating between a sleek new build and a move‑in‑ready resale condo in King West or Liberty Village? You are not alone. These downtown pockets attract buyers and investors who prize walkability, nightlife, and rapid access to the Financial District. This guide breaks down how each option works, what it costs, the risks to watch, and how to decide which path fits your plans. Let’s dive in.

King West market snapshot

King West and Liberty Village are high-demand areas with steady interest from young professionals and creative-sector tenants. Buildings range from glass towers to industrial conversions, and pre-construction launches continue in waves. That pipeline matters for pricing and timing.

Rental demand remains strong for well-located suites, especially one-bedroom and smaller two-bedroom layouts. These neighbourhoods benefit from the King streetcar corridor and easy access to GO and UP Express. If you are an investor, this supports leasing prospects, though yields will still hinge on purchase price, condo fees, and your financing.

Keep in mind that Toronto’s short-term rental rules require registration and restrict rentals to a principal residence. If your strategy depends on short stays, review the municipal framework and building bylaws before you buy.

How pre-construction purchases work

Buying new means you are purchasing from a developer before or during construction. Your costs, timeline, and risk profile differ from resale. Here is what to expect.

Deposits and timing

For pre-construction, total deposits typically land around 15 to 20 percent of the purchase price, paid in stages. A common structure is 5 percent on signing, another 5 percent within 30 to 120 days, and further installments over several months. Your funds sit in trust under the Agreement of Purchase and Sale.

Confirm three things up front:

• The total deposit percentage and exact schedule.
• Whether the developer allows third-party guarantees instead of certified funds.
• Refund conditions tied to the contract, including any assignment terms.

10-day cooling-off period

In Ontario, you receive a statutory 10 calendar day cooling-off period on new condominium purchases. During this window you can cancel for any reason and receive your deposit back, provided you received the full disclosure package and follow the agreement’s procedures. There is no automatic cooling-off for standard resale deals once conditions are waived.

Interim occupancy and cash flow

Interim occupancy is a unique pre-construction phase. You can take possession and live in the unit after it is ready, but before the building is registered and title transfers at final closing. During this time, you pay an interim occupancy fee to the developer. This fee is not mortgage principal. It generally covers interest on the unpaid balance plus estimated condo fees and property taxes.

Occupancy can last months or longer. Lenders normally advance your mortgage only at final closing, so you should plan for out-of-pocket occupancy fees until then. Always request a sample calculation from the builder so you can model cash flow realistically.

Warranties and new-build protections

New condos from registered builders are typically covered by the Tarion new home warranty program. Coverage includes one year for most workmanship and materials, two years for certain systems and water penetration, and seven years for major structural defects. Confirm the builder’s registration and your warranty specifics in writing before you waive your cooling-off rights.

HST and closing costs

HST applies to new residential construction. Builders often quote prices that assume HST and certain rebates, but you should confirm whether the advertised price is truly HST-inclusive and whether you qualify for any rebate. At closing you will also pay Ontario and City of Toronto land transfer taxes, legal fees, and adjustments. Budget for development levies or other builder adjustments if noted in the agreement.

How resale condo purchases work

Resale purchases provide clarity on the unit, building, and current market value. You also avoid construction risk and interim occupancy.

Deposits and closing timeline

Resale deposits are typically smaller, often 5 to 10 percent on acceptance, held in trust until closing. Your mortgage starts when you close, and you begin paying property taxes and condo fees immediately. Because the unit exists today, you can confirm layout, views, finishes, and building operations before you firm up your offer.

Status certificate and building health

The status certificate is your key document for a resale condo. It outlines the condo corporation’s financials, reserve fund balance, bylaws, insurance, any litigation, and unit-specific details. Review it with your lawyer before removing conditions. Also scan recent AGM minutes to assess upcoming repairs, capital projects, and fee changes.

Pay attention to the reserve fund and current maintenance fees, including what is covered. In older or more boutique buildings, fees can vary widely. A thorough review helps you avoid unwelcome surprises.

Immediate use and rental potential

Resale units can usually be occupied or rented soon after closing, subject to any existing tenancy and building rules. For lifestyle buyers, this means instant enjoyment. For investors, it means faster income compared to the multi-year horizon of pre-construction.

Cost comparison checklist

Use this quick checklist to compare your outlays and cash flow under each path:

• Upfront funds

  • Pre-construction: staged deposits around 15–20 percent, funds tied up for months or years, legal review during cooling-off. No land transfer tax until final closing.
  • Resale: deposit often 5–10 percent on acceptance, plus legal fees and any inspection costs. Land transfer taxes due at closing.

• Cash flow before and after occupancy

  • Pre-construction: interim occupancy fees until registration and closing. No mortgage until closing. No rental income during interim occupancy unless your agreement and rules allow.
  • Resale: mortgage payments and condo fees start immediately after closing. Rental income can begin right away if permitted.

• Ongoing costs

  • Both: condo fees, utilities, and property taxes. Developer budgets for new buildings can be optimistic, so stress test your numbers.

• Risk exposure

  • Pre-construction: construction delays, plan or budget changes, market shifts before closing, and builder solvency risk. Assignment rules may limit flexibility.
  • Resale: condition risk is more visible, and market value is clearer at the time of purchase.

• Value protection

  • Pre-construction: Tarion-backed warranty support and potential appreciation by closing, but also downside risk if the market softens.
  • Resale: today’s market value is more certain, and future value depends on building reputation, suite condition, and local trends.

Who should choose what

Your choice comes down to timeline, cash flow, and risk tolerance.

• If you need to live in the unit within months, or you want predictable cash flow, resale offers certainty and immediate use.
• If you have a multi-year horizon and can manage staged deposits and interim occupancy, pre-construction can fit your plan, especially if you value brand-new amenities and finishes.
• Conservative investors who prioritize known numbers usually lean resale.
• Speculative investors who believe in the long-term trajectory of a specific project or corner of King West may prefer pre-construction, but should track builder reputation and assignment flexibility.

King West negotiation notes

A few local tactics can improve outcomes in these neighbourhoods:

• Structure deposits: ask for phased deposits and limit early capital outlay where possible.
• Assignment options: if resale or exit flexibility matters, confirm assignment rights and fees before you sign a pre-construction agreement.
• Occupancy math: request a worked example of the interim occupancy fee so you can plan cash reserves.
• Parking and lockers: in dense downtown buildings these carry real value. Confirm whether they are owned or leased and whether they are included in your price.
• Fee realism: compare a developer’s proposed condo budget to similar nearby buildings to set clear expectations for future fees.
• Resale diligence: order the status certificate early and read AGM minutes to spot upcoming assessments or major projects.

Legal and tax notes to budget

• Cooling-off: you have 10 calendar days on new condo purchases to review and, if needed, cancel with a full deposit refund, provided disclosure requirements are met.
• HST: applies to new construction. Clarify whether pricing is HST-inclusive and whether you qualify for any rebate. Consult your accountant or lawyer for eligibility.
• Land transfer tax: in Toronto you pay both provincial and municipal land transfer taxes at closing. First-time buyer rebates may apply if you qualify.
• Closing costs: budget for legal fees, title-related costs, adjustments for taxes and condo fees, and, for new builds, any development levies or builder adjustments stated in your agreement.

Your action plan

Use this simple sequence to move forward with confidence:

1. Define your timeline

• Immediate move or rental income favors resale. A flexible 1 to 4 year window keeps pre-construction in play.

2. Set a cash budget

• Include staged deposits, interim occupancy fees, legal costs, land transfer taxes, and a contingency buffer.

3. Secure financing guidance

• Get pre-approval for the final purchase price. Confirm your lender’s policy on interim occupancy and assignment.

4. Engage a real estate lawyer early

• For pre-construction: review the agreement, deposit schedule, cooling-off deadlines, occupancy fee formula, and warranty registration.
• For resale: review the status certificate, AGM minutes, bylaws, and any special assessments before you waive conditions.

5. Validate the building or builder

• Pre-construction: research past projects and on-time delivery. Ask for references and a sample occupancy fee calculation.
• Resale: check reserve fund health, current fees, and planned capital work. Confirm inclusions like parking and lockers.

6. Align the property with your use-case

• Owner-occupier: weigh lifestyle, commute, and amenities.
• Investor: model conservative and optimistic scenarios for rent, fees, and closing timelines.

When you want an informed, low-stress path in King West or Liberty Village, a calm, data-driven plan is your advantage. If you would like tailored guidance on specific buildings, deposit strategies, or assignment clauses, connect with Andy Taylor for a private consultation.

FAQs

What is the 10-day cooling-off period for new condos in Toronto?

• Ontario provides 10 calendar days after you receive the full disclosure package to cancel a new condo purchase and receive your deposit back, subject to the agreement’s procedures.

How do pre-construction deposits in King West usually work?

• Deposits typically total about 15–20 percent in stages, such as 5 percent on signing and additional installments over several months, held in trust under the purchase agreement.

What is interim occupancy and how does it affect my cash flow?

• Interim occupancy is the period after you receive keys but before title transfers; you pay an occupancy fee to the developer that is not mortgage principal, and most lenders fund your mortgage at final closing.

Do I pay HST on a resale condo in Toronto?

• HST generally does not apply to standard resale residential purchases; it applies to new construction, where pricing and potential rebates should be clarified with your lawyer or accountant.

What should I look for in a resale condo’s status certificate?

• Review the condo corporation’s financials, reserve fund balance, bylaws, any litigation, special assessments, and unit-specific details with your lawyer before removing conditions.

Do I pay both provincial and municipal land transfer taxes in Toronto?

• Yes, buyers in Toronto pay the Ontario Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax at closing; first-time buyer rebates may apply if eligible.