In Ontario, a new home isn't just covered by a builder's goodwill — it's backed by a mandatory warranty program. Understanding it before you hire tells you a lot about who you're dealing with.
Who runs it: Tarion & the HCRA
Ontario's new home warranty operates under the Ontario New Home Warranties Plan Act and is administered by Tarion. Builders and vendors must be licensed by the Home Construction Regulatory Authority (HCRA), and your home must be enrolled with Tarion for coverage to apply. A builder who can't give you a clear answer about their HCRA licence is a red flag.
What's covered, and for how long
| Coverage | What it covers (in general) |
|---|---|
| 1 year | Defects in work and materials; compliance with the Ontario Building Code |
| 2 years | Water penetration; defects in electrical, plumbing and heating delivery systems; exterior cladding; items that make the home unsafe |
| 7 years | Major structural defects |
Coverage begins when you sign the Agreement of Purchase and Sale and stays with the home — even if it's sold — for up to seven years. The warranty also includes deposit protection and delayed-closing or occupancy compensation.
How claims work
Your builder is the first warranty provider — they resolve issues first. If something isn't resolved or the builder disputes coverage, you can file a claim directly with Tarion, which assesses it independently.