Homes
What You Need to Know Before Buying a New Home
Updated on March 24, 2025
The Home Construction Regulatory Authority (HCRA) plays a critical role in helping new home buyers navigate one of the most important decisions of their lives: purchasing a home. Your home is one of your biggest investments, so it’s important to make an informed decision before you sign on the dotted line.
The HCRA is a consumer protection organization that licenses new home builders and sellers across the province. As the regulator, the HCRA is responsible for licensing new home builders and sellers across the province, providing you with tips and tools for a smooth homebuying and homeownership experience.
Here are some important tips from the HCRA to help you protect your investment when it comes to buying a new home.
Make Sure Your Builder is Licensed
In Ontario, the law requires all new home builders and sellers to be licensed by the HCRA. Building or selling a new home without a licence is illegal. Licensed builders are required to follow industry rules and standards, including the Code of Ethics and the Ontario Building Code, which means added protection — and more peace of mind — for you as a buyer.
By using the HCRA’s resources, homebuyers can make informed decisions and feel more confident during the buying process.
Check the Ontario Builder Directory
Before committing to a builder, check the Ontario Builder Directory to confirm they are licensed. Verifying a builder’s licence is an important first step in ensuring a reliable homebuying experience. If the builder is unlicensed or you have concerns about their professionalism or conduct history, it is wise to reconsider.
The Builder Directory provides key background information including a builder’s licensing status, the number of homes they have built, and whether the HCRA has taken regulatory action against them, such as court charges or convictions.
This is a significant investment, so work with a builder who inspires confidence and trust. If a builder does not appear to be listed in the Builder Directory, it is very likely that they are not licensed and are not operating legally. Contact the HCRA at [email protected] or give them a call at 416-487-HCRA (4272) immediately.
Know What to Expect from Your Builder from the Start
A new home is more than just a place to live — it’s a major investment. Understanding your builder’s responsibilities upfront, and your own rights as a buyer, can help ensure a transparent and smooth process.
All homebuyers should expect fairness, honesty and integrity from their builder. In Ontario, licensed builders and sellers are required to follow a Code of Ethics, which outlines 20 expectations for good conduct. Builders are also expected to abide by the terms of their contract. If a term or condition isn’t listed, including any price escalations, as a homebuyer, you’re not obligated to agree to it.
For condominium buyers, another important protection to be aware of is the initial 10-day period to cancel your purchase. If you decide not to proceed, you can terminate your agreement within that period and receive your deposit back. Review your contract carefully with a legal professional to fully understand your rights before you buy.
The HCRA Helps You Make Informed Decisions
In addition to regulating builders, the HCRA also educates and protects the public, listens to consumer concerns and provide useful resources so they can make informed decisions throughout the homebuying journey.
Whether you’re a first-time buyer or well-experienced, you can go to the HCRA to get important information when it comes to purchasing a new home (including a condominium unit). Stay informed by visiting the HCRA’s website which includes their blog, The Home Front. On the website, you can also find important steps in the home buyer’s journey and sign up to the HCRA’s newsletter for news and updates.
You Can File a Complaint if Something Goes Wrong
While most new home buyers have a positive experience with their builder, there are exceptions. The HCRA enforces a Code of Ethics mandating builders to conduct themselves with integrity, honesty and professionalism throughout the homebuilding process.
If you experience harassment, discrimination, bullying or dishonesty of any kind, submit a complaint for review by the HCRA. Every complaint is taken seriously and goes through a thorough review. By reporting these concerns, you can help the HCRA better protect the public. Learn more about the actions the HCRA has taken to protect consumers.
Remember that a well-informed buyer is a confident buyer. Make the most of the HCRA’s tools and resources so you can protect yourself and your new home. Visit the Ontario Builder Directory to find a licensed builder and visit hcraontario.ca to learn more.