THE QUICK ANSWER
Interim occupancy gives you possession before title transfers. Final closing completes the purchase and transfers ownership to you.
- Keep separate budgets for the occupancy period and final closing.
- Ask for the fee breakdown and the latest written dates.
- Plan a cash buffer if the gap between milestones is longer than expected.
The three stages of your purchase
Purchase
Sign the agreement, arrange deposits and prepare your financing plan.
Interim occupancy
Take possession if there is an occupancy period. Title remains with the developer.
Final closing
Complete the purchase, receive title and fund your mortgage if borrowing.
More detail: Tarion: a condo buyer’s guide to interim occupancy ↗
What changes at each stage?
| Question | Interim occupancy | Final closing |
|---|---|---|
| Do I own the unit? | No. You have possession under the occupancy arrangements. | Yes, once the transfer is completed. |
| What is the main monthly payment? | An occupancy fee paid to the developer. | Mortgage payments if financed, plus condo fees and property taxes. |
| What should I organize? | Occupancy paperwork, fee payments, insurance and move-in arrangements. | Closing funds, lender instructions and your lawyer’s final statement. |
More detail: Tarion: interim occupancy and completion ↗
What is in the occupancy fee?
The fee can include interest on the unpaid purchase price at the prescribed rate, estimated property taxes and projected common expenses. It is payable even if you choose not to move in. Paying it does not pay down your purchase price.
More detail: Condo Authority: interim occupancy fees ↗
An example of the cash you may need
Suppose the developer’s statement shows a monthly occupancy fee of $2,400. Four months would require $9,600; seven months would require $16,800. That extra three months changes your cash requirement by $7,200.
These are invented planning figures, not a quote or a prediction of occupancy length. Add your insurance, utilities and any overlap with your current home separately. Keep your final-closing funds available throughout.
| Illustrative scenario | Occupancy-fee total |
|---|---|
| 4 months × $2,400 | $9,600 |
| 7 months × $2,400 | $16,800 |
| Difference to plan for | $7,200 |
Which date should you plan around?
Use the Statement of Critical Dates and subsequent written notices. A marketing estimate, tentative date and firm date are not interchangeable. Ask your lawyer what extensions, notices and remedies apply before agreeing to a date amendment.
Build your moving plan around confirmed information and keep a fallback for storage, temporary accommodation or a lease overlap.
More detail: HCRA: purchase-agreement addenda and dates ↗
Can you rent it out during occupancy?
Ask your lawyer to check the occupancy licence, purchase agreement and developer’s consent requirements before advertising a rental. Do not build your budget around rent that you are not yet permitted to collect.
For a freehold home, ask whether there is any separate possession arrangement. The interim-occupancy sequence described here is for new condos; a townhouse’s appearance alone does not tell you its ownership structure.
SAVE FOR YOUR SHORTLIST
Your next-step checklist
- Request separate estimates for occupancy costs and final-closing funds.
- Confirm the mortgage-funding plan with your lender before occupancy.
- Keep the addendum, all notices and date amendments in one folder.
- Check insurance, move-in booking and rental permission before making commitments.
Quick answers
Do occupancy fees reduce my mortgage?
No. Treat the occupancy fee as a separate carrying cost. Your mortgage funding and remaining purchase funds are dealt with at final closing.
How long will interim occupancy last?
There is no single duration to use for every project. Ask for the developer’s latest information and budget for a longer gap rather than assuming a specific number of months.
Does every new home have interim occupancy?
No. Ask about the legal ownership structure and the sequence in your agreement. A conventional freehold closing and a pre-construction condo purchase can work differently.
General information for planning. Confirm financing, legal and tax details with the appropriate professional for your purchase.