OTTAWA NEW CONSTRUCTION
Selling Your Home While Buying a New Build: Getting the Timing Right
Last updated: October 2026
The safest way to sell your home while buying a new build is to plan your sale around the dates in your builder’s Tarion Addendum, not the date the salesperson hopes for. Most Ottawa move-up buyers list their current home once the builder has set a firm closing date or is within a few months of it, choose a closing date that lines up with it, and keep a fallback, such as a flexible closing, a short rent-back or bridge financing, in case the builder is delayed.
This is the problem Jason Polonski solves most often for his clients. As a west-end REALTOR® who works as a move coordinator for buyers and sellers in Kanata and Stittsville, his first job is to help you avoid a timing mistake; his second is to get you the best price.
Why New Builds Make Timing Harder
When you buy a resale home and sell your current one, both closing dates are fixed when the offers are signed. You can line them up to the day.
With a new build, the closing date is often uncertain for months. The builder sets tentative dates and can extend them within Ontario’s rules. Meanwhile, the sale of your current home needs a firm closing date chosen when you accept an offer. If you sell too early, you may need to rent or stay with family. If you sell too late, you may need to carry two homes or rush your sale.
Builders also rarely accept a condition on the sale of your existing home. That means you are committed to the new home whether or not your current home has sold.
For the broader picture of buying and selling at the same time in Ottawa, see Jason’s guide to selling and buying a home at the same time. This page focuses on the extra layer a builder’s timeline adds.
How Builder Closing Dates Work in Ontario
Your agreement includes a Tarion Addendum with a Statement of Critical Dates. According to Tarion, for agreements with tentative dates:
- The First Tentative Closing Date is the builder’s anticipated completion date.
- The builder can extend to a Second Tentative Closing Date, up to 120 days later, with at least 90 days’ written notice.
- The builder must then set a Firm Closing Date, no later than 240 days after the first tentative date, again with at least 90 days’ notice.
- If the firm date is missed, delayed closing compensation applies, and an Outside Closing Date sets the latest point before you can terminate.
The 90-day notice rule is the key to planning your sale. If the builder has not given notice of an extension at least 90 days before a tentative date, that date automatically becomes your firm closing date. Once you have a firm date, you can plan your sale with much more confidence.
Sell Your Ottawa Home for Just 1% Listing Commission
Why pay 2.5% listing commission to sell your home when you don't have to? Jason Polonski lists Ottawa homes for a simple 1% listing commission. Full MLS® and REALTOR.ca exposure, professional photography, powerful online marketing, expert pricing, and a skilled negotiator fighting for every dollar of your sale price. Top-tier service — you just keep thousands more when your home sells. Smart sellers are already making the switch. Your home deserves the best, and your wallet deserves a break.
Your Four Main Timing Options
Option 1: Sell after your firm closing date is set
This is the approach Jason recommends most often. You wait until the builder has a firm closing date, or the notice deadline for an extension has passed, then list your home with a closing date a few days before or on the same day as your new home’s closing.
Best for: sellers in a balanced or strong market who can sell within a few months.
Watch for: a firm date may only be set three months before closing, so you need your home ready to list quickly. Prepare early: repairs, decluttering and photography can all be done before you list.
Option 2: Sell first and bridge the gap
You sell your home when the market is strongest, then rent, stay with family or negotiate a rent-back from your buyer until your new home closes.
Best for: sellers worried about prices falling, or who want certainty about their sale price before closing on the new home.
Watch for: the cost and disruption of moving twice, plus storage. Builder delays can lengthen the gap. If the builder delays past the firm closing date, Tarion compensation, including $150 per day for living expenses up to a $7,500 total, may help offset costs, but it will not cover everything.
Option 3: Close on the new home first with bridge financing
If your new home closes before your current home’s sale closes, a bridge loan can cover the down payment on the new home until your sale funds arrive. Bridge financing is usually short-term and requires a firm sale on your current home.
Best for: buyers whose sale is firm but closes a few weeks after the new home.
Jason’s guide to bridge financing in Ottawa explains how it works, and the Financial Consumer Agency of Canada explains mortgage options in general.
Option 4: Long closing on your current home
In some markets, buyers will accept a longer closing, giving you a firm sale price now with a closing date months away, aligned with your builder’s expected date. The risk is that if the builder delays beyond that date, you need a fallback.
Best for: homes in strong demand where a buyer is willing to wait, such as family homes near good schools listed in spring for a summer or fall closing.
Get Cash Back When You Buy a Home in Ottawa
Can you get cash back when buying a home in Ottawa? Yes. Jason Polonski, a Chairman's Club REALTOR® serving Ottawa and Kanata, shares part of his commission with buyers — up to $3,000 cash back at closing.* You still get full-service, award-winning representation: expert pricing, sharp negotiation, and hands-on guidance from first showing to keys in hand. No cut corners and no rebate-only shortcuts — just real money back in your pocket when you buy your Ottawa or Kanata home.
How Builder Delays Affect Your Sale
If the builder delays after you have sold, you have a gap to fill. Before you sell, Jason looks at:
- How many extensions the builder has already used and how much notice remains
- The builder’s track record in the community
- Your fallback options, such as a rent-back clause in your sale agreement, short-term rentals near your children’s schools or family nearby
If the delay goes beyond the firm closing date, you may be entitled to compensation under Tarion’s rules. Jason’s guide to new home closing delays explains what you can claim.
Your Finances Through the Wait
Deposits come from savings, not your sale
Builder deposits are usually due long before you sell, so they need to come from savings or other funds. Plan them carefully. See new build deposits in Ontario.
Your mortgage approval needs to hold
If your new home closes a year or more after you sign, your lender will need to reconfirm your income, credit and the rate at closing. Talk to your lender early about rate holds for new builds.
Know your home’s value
Before you sign with a builder, it helps to know what your current home is likely to sell for. That number determines your budget for the new home. Jason’s home valuation page is the place to start, and he can prepare a detailed comparative market analysis.
HST relief and your budget
For agreements signed between April 1, 2026 and March 31, 2027, qualifying new homes bought as a primary residence may be eligible for up to $130,000 in HST relief under Ontario’s program. For many move-up buyers, that relief changes how much they need from their sale. Confirm eligibility with your lawyer.
Getting Your Current Home Ready While You Wait
The months between signing with a builder and listing your home are an opportunity. Jason’s background in the construction and electrical trades helps him identify which repairs will matter to buyers and which will not. Common pre-listing steps include:
- Fixing small items buyers notice: dripping taps, sticking doors, damaged trim
- Servicing the furnace and air conditioning and keeping records
- Decluttering gradually, which also makes your eventual move easier
- Planning photography and staging for the best season
If you are moving into a new build, you may also choose to sell some furniture now rather than move it.
A Real-World Planning Timeline
For a new home with a first tentative closing date about a year away, a typical plan looks like this:
- Now: sign with the builder, register with Tarion within 45 days, and get a valuation of your current home.
- Six to nine months before tentative closing: complete repairs and start decluttering.
- Around 90 days before each tentative date: watch for the builder’s extension notices.
- Once a firm date is set: list your home with a matching closing date, or negotiate a rent-back if listing earlier.
- Final weeks: pre-delivery inspection on the new home, final walk-through on the sale, and coordinate movers for the same day or a short gap.
Protecting Yourself on Both Contracts
When you are selling one home and buying a new one, you are managing two very different agreements. A few steps reduce your risk on each:
On the new home:
- Confirm the builder’s licence on the Ontario Builder Directory, run by the Home Construction Regulatory Authority.
- Register your purchase with Tarion within 45 days to qualify for full deposit protection.
- Remember there is currently no statutory cooling-off period for new freehold homes. According to Tarion, a 10-day period is scheduled to take effect on January 1, 2027. Until then, review the agreement before you sign.
On the sale:
- Choose your closing date only after checking the builder’s notice deadlines.
- Consider a rent-back clause if there is any chance the builder will be late.
- Keep your buyer’s financing and closing conditions as clean as possible, so your sale is firm when you need it to be.
On the money:
- Ask your lender about rate holds for long new-build closings and about CMHC’s guidance on home buying if you are using mortgage default insurance.
How Jason Polonski Coordinates Both Sides
Jason represents you on both the purchase and the sale, which means one person is responsible for making the dates work. He reviews your builder agreement’s critical dates before you sign, watches the notice deadlines, prepares your home for market, and negotiates a sale closing date and terms, including rent-back clauses where needed, that protect you if the builder is late. He sells homes with a 1% Listing Commission on the final sold price; the commission paid to the buyer’s brokerage is separate.
Jason holds a Bachelor of Commerce from Concordia University with a double major in Marketing and Finance and has more than 15 years of Ottawa real estate experience. He has helped hundreds of buyers and sellers make the move up in Kanata, Stittsville and across the west end. See how he works with move-up clients in the move-up buyer guide.
Plan Your Sale Around Your New Build
Call or text (613) 601-9333 or email polonskiottawa@gmail.com before you sign with a builder. Read client reviews on his reviews page.
Frequently Asked Questions
Usually once the builder has set a firm closing date or the notice deadline for an extension has passed, with your sale closing on or just before the new home’s closing date.
Builders rarely accept a sale condition. Plan as though you are committed to the new home regardless.
You will need a fallback, such as a rent-back, short-term rental or family. If the delay passes the firm closing date, Tarion compensation may apply, including $150 per day for living expenses up to $7,500 in total.
At least 90 days’ written notice before a tentative closing date, or that date becomes the firm closing date.
Yes, when your new home closes shortly before your sale. It usually requires a firm sale on your current home.
It can make sense if you want certainty about your sale price, but it means moving twice and paying rent. Compare the cost with the risk of waiting.
