In 2024, the Ontario government passed new legislation aimed at strengthening consumer protection in the housing market. Among the changes introduced in the Homeowner Protection Act, 2024, is a proposed 10-day cooling-off period for buyers of new freehold homes—similar to the one already in place for newly built condos.
This change is designed to give homebuyers more time to review their agreements and make informed decisions—without pressure. However, while the legislation has passed, this cooling-off period is not yet in effect.
Here’s what you need to know about this upcoming regulation and how it could impact future home purchases.
🧾 What Is the 10-Day Cooling-Off Period?
Once implemented, the 10-day cooling-off period will allow buyers of newly built freehold homes in Ontario to cancel their purchase agreement within 10 calendar days—without penalty.
This grace period begins when the buyer receives:
- A copy of the signed agreement of purchase and sale,
- A mandatory information disclosure sheet,
- And any other required documentation.
The intention is to give buyers the breathing room to review terms, seek legal or financial advice, and ensure the decision aligns with their goals.
🔗 Read more about the proposed cooling-off period from Miller Thomson LLP
⏳ When Will the Cooling-Off Period Start?
Although the legislation has received Royal Assent, the cooling-off period is not yet in force. It will be enacted on a future date to be announced by the Ontario government.
Until that time, there is no guaranteed cancellation window for buyers of new freehold homes. So while the change is coming, it’s not available yet—and buyers should still review all terms carefully before signing.
You can view the full legislation here:
🔗 Ontario’s Homeowner Protection Act, 2024 (Bill 200)
🛠️ Why This Change Matters
This upcoming change is part of a larger push to protect homebuyers, especially in hot markets where decisions are often made quickly. Once active, the 10-day cooling-off period will:
- Align freehold home sales with the rules already in place for condos,
- Protect buyers from rushed or pressured sales tactics,
- And give more confidence to first-time buyers navigating the process.
Until then, it’s important for homebuyers to remain cautious and ensure all due diligence is done before signing on the dotted line.
✅ What Can Buyers Do Now?
If you’re buying a newly built freehold home before the cooling-off period becomes law, here are a few steps to take:
- Review your agreement with a real estate lawyer before signing,
- Ask questions about deposits, warranties, and cancellation rights,
- Understand your full financial picture—use our Mortgage Affordability Calculator to see what fits your budget,
- And speak with a licensed mortgage professional to weigh all options.
For more on consumer protections and how to navigate your home purchase, check out our articles on CMHC Mortgage Insurance, Understanding Debt Ratios, and TDS calculations.
Talk to The Local Broker
At The Local Broker, we’re here to help you navigate every step of the mortgage and homebuying process—especially with new rules and regulations on the horizon. If you’re unsure how this change might affect you, or if you just want to run the numbers, reach out to us anytime. We’ll guide you through your next move with clarity and confidence.
