Buying New Construction in Woodstock: The Complete Guide

By Jay Friesen, REALTOR® – Woodstock, Ontario

Buying a new construction home is nothing like buying resale. The timelines are longer, the paperwork is thicker, and the price you see advertised rarely reflects what you'll actually pay at closing. None of this makes new construction a bad choice. It just means you need to understand what you're getting into.

Woodstock is in the middle of significant growth. Oxford County exceeded its 2023 provincial housing target, and that performance unlocked infrastructure funding along corridors like Pittock Park Road to support thousands of additional homes. Communities like River & Sky are building out phases along the Thames. Boutique developments like Nature's Edge offer larger lots with more customization options. And in the city's southwest, the Karn Road development represents one of the largest residential expansions Woodstock has seen. Anchored by Heartwood by Cachet and developed in partnership with Oxford Builders Inc., the project received Official Plan Amendment approval from Oxford County Council in 2023 and will deliver over 1,000 homes across a mix of freehold townhomes and detached singles. Current offerings range from townhomes on 20-foot lots starting in the high $500s to 36-foot detached homes reaching into the low $1 millions, with occupancy dates stretching into 2025 and 2026.

The inventory is here if you want something brand new, built to current code, with the finishes you choose. But getting from "I like that floor plan" to "I own this home" involves navigating a system that most buyers encounter for the first time at a sales centre. This guide covers what that system actually looks like.

How Ontario Protects New Home Buyers

Ontario has one of the strongest consumer protection frameworks for new homes in Canada. Two organizations run it.

The Home Construction Regulatory Authority (HCRA) licenses everyone who builds or sells new homes in the province. Before you consider any builder, search their name in the Ontario Builder Directory at hcraontario.ca. You'll find their licence status, years of operation, number of homes built, and any regulatory actions. An unlicensed builder operating in Ontario is breaking the law. If they're not in the directory, that's your answer. Even well-known names are worth checking. Confirming that Cachet and Oxford Builders are properly registered takes two minutes and ensures you're protected.

Tarion administers the warranty and deposit protection program. For freehold homes, your deposit is protected up to $60,000 if the purchase price is $600,000 or less, or 10% of the price up to $100,000 for higher-priced homes. This deposit coverage applies even if the builder is operating illegally, which is unique in Canada.

However, warranty coverage is different. The one-year coverage for workmanship and materials, two-year coverage for electrical, plumbing, heating systems and water penetration, and seven-year coverage for major structural defects only applies when you purchase from a builder who is properly licensed and registered with the HCRA. Buy from an unlicensed builder and your deposit protection still applies, but you won't have access to warranty coverage for defects. This is another reason why checking the Ontario Builder Directory before signing anything isn't optional.

There's a new requirement worth noting. Starting January 1, 2026, buyers who register their purchase agreement with Tarion within 45 days of signing will qualify for full deposit protection. Those who don't will share a separate $10 million annual fund. If claims exceed that fund, coverage gets prorated. The registration process takes minutes and can be done through Tarion's website. It's a small step that provides significant protection.

You must also submit warranty forms through Tarion's MyHome portal at specific intervals to make claims. Miss the deadlines, lose the ability to claim.

Understanding the Real Price

The number on the sales centre price sheet is a starting point, not a final figure. Here's what typically gets added.

Lot premiums apply to desirable locations: corner lots, ravine lots, pie-shaped lots, or lots backing onto green space. These can add thousands to tens of thousands depending on the community.

Elevation premiums reflect different exterior designs. The base price usually includes one elevation; upgraded facades cost more.

Upgrades cover everything from structural changes (nine-foot ceilings, larger windows, separate basement entrances) to finishes (cabinetry, countertops, flooring, fixtures). The design centre appointment is where budgets often expand significantly.

Development charges are the big one. These fees fund the infrastructure that supports new communities: roads, water and sewer systems, parks, fire services, transit. In Woodstock, you're paying three layers: City of Woodstock charges, Oxford County charges, and area-specific water and wastewater charges. For a single detached home, combined charges run over $30,000.

The City of Woodstock passed an updated development charge by-law in June 2024 and amended it again in February 2025. These numbers change, and therein lies the risk. If your purchase agreement doesn't cap development charges at a fixed amount, any increase between your signing date and the building permit date flows through to your closing costs. An "open" clause on development charges is one of the most common sources of unwelcome surprises.

Other closing adjustments may include utility connection fees for hydro, gas, and water meters; Tarion enrolment fees; grading deposits; tree planting charges; and various administrative levies. A well-drafted agreement caps the total. A poorly drafted one leaves it unlimited.

What Belongs in the Agreement

Every new home purchase agreement in Ontario must include a Tarion Addendum containing a Statement of Critical Dates. This document establishes when the builder intends to close or provide occupancy and sets the outside date beyond which you may have the right to terminate and receive your deposit back.

If the builder misses the firm occupancy or closing date without a valid reason, you may be entitled to delayed closing compensation of $150 per day up to $7,500, plus certain additional living expenses. The specific conditions for these claims are set out in the addendum.

Beyond the addendum, several contract provisions deserve scrutiny.

Closing cost caps: Is there a maximum dollar amount for development charges and other builder adjustments? If not, you're exposed to increases you can't control.

HST treatment: Does the advertised price include HST? Most builders in Woodstock quote prices that assume you'll assign your HST New Housing Rebate back to them. If you don't qualify for the rebate (because you're not occupying the home as your primary residence or you assign the contract before closing), you may owe additional money. This needs to be explicit.

Substitution clauses: Builders sometimes can't source specific materials or finishes. What are they permitted to substitute, and what approval do you have over changes? Tarion prohibits unauthorized substitutions, so the contract language should align with warranty requirements.

Assignment rights: Can you sell your interest in the agreement before closing if your circumstances change? What fees or restrictions apply?

A lawyer who regularly handles new construction transactions will know exactly what to look for in these agreements. The standard forms run dozens of pages and the details matter enormously.

The Process from Start to Finish

Buying new construction follows a longer timeline with distinct stages.

Before you sign, get clear on your financing. Pre-construction deposits are typically larger and paid in stages. A common structure might be $10,000 on signing, then additional payments totaling 5% to 15% of the purchase price over the following months. Your lender needs to understand you're buying something that won't exist for nine to twenty-four months.

Several programs can help with financing. The RRSP Home Buyers' Plan allows withdrawals up to $60,000 per person (repayable over 15 years). The First Home Savings Account permits contributions of $8,000 annually to a $40,000 lifetime maximum, with tax-deductible contributions and tax-free withdrawals for a qualifying home. The Ontario land transfer tax refund provides up to $4,000 for eligible buyers. And HST rebates can return up to $24,000 of the provincial portion plus up to $6,300 of the federal portion, depending on price and eligibility.

Worth watching: the federal and provincial governments have announced proposed rebate programs that could significantly change the math on new construction for first-time buyers. If passed and implemented as proposed, these rebates would eliminate up to the full 13% HST on qualifying new-build homes priced under $1 million. On a $650,000 townhome, that's potential savings of roughly $84,500, which could bring the effective price below many comparable resale homes in Woodstock that typically sell in the $580,000 to $620,000 range. Important caveat: these rebates are currently proposed and have not been fully implemented. Eligibility rules, application processes, and effective dates may still change. Verify the latest status with your lawyer or lender before relying on this potential savings.

After signing, your purchase agreement gets registered with the builder and, ideally, with Tarion. Deposits are paid according to the schedule in your agreement. Then you wait.

During construction, expect limited site access. Builders restrict visits for liability and safety reasons. Communication typically happens through construction updates, design centre appointments to finalize selections, and occasionally scheduled walk-throughs at key stages like framing completion. Keep every document related to upgrades and change orders. Tarion advises documenting all selections and payments in writing.

Before closing, you'll attend a Pre-Delivery Inspection (PDI). This is your opportunity to walk through the home with a builder representative and document anything incomplete, damaged, or defective. Items go on the official PDI form, which becomes your record of the home's condition at possession. Bring a camera, a flashlight, and painter's tape to mark issues. Tarion publishes a detailed checklist worth using.

At closing, your lawyer handles the transfer. For freehold homes, you receive title and keys on closing day. For condominiums, there's often an interim occupancy period where you take possession and pay monthly occupancy fees (interest on the unpaid balance, estimated taxes, and condo fees) until the condominium corporation is registered and title can transfer.

After closing, your warranty coverage runs for up to seven years, but requires action. Submit the 30-day form through Tarion's MyHome portal to capture issues discovered after moving in. Submit year-end forms at the one-year and two-year marks for warranty claims during those periods. Document all communication with your builder in writing.

Why Representation Matters

Sales centre representatives work for the builder. Their job is to sell homes for that builder in that community. They can be helpful, professional, and knowledgeable, but their obligation runs to their employer.

Working with your own agent means having someone whose obligation runs to you. Someone who can compare developments across Woodstock and the surrounding area based on total cost rather than advertised price. Someone who understands how to read HCRA records and what a builder's history actually indicates. Someone who coordinates with your lawyer and mortgage professional so everyone works from the same information.

When I work with buyers on new construction, we start by understanding what you're optimizing for. Commute matters: how close do you need to be to the 401, to Toyota, to London or Kitchener or the GTA? Schools may matter. Lot characteristics may matter: standard interior lots cost less than ravine or pie-shaped lots, but some buyers won't compromise on that. Tolerance for ongoing construction matters: early phases in a new community mean better selection but years of trucks and noise; later phases mean less choice but quieter streets.

Once we know what you're looking for, we can evaluate actual options and actual costs. We can walk through agreements line by line before you sign anything. We can make sure you understand what happens if the builder delays, what your deposit protection actually covers, what your warranty rights are, and what costs you should expect at closing.

New construction can be an excellent choice. A home built to current energy codes, with the layout you want, the finishes you select, and warranty coverage for years after you move in. But it requires understanding a process that's unfamiliar to most buyers and a pricing structure that rewards people who ask the right questions.

If you're considering new construction in Woodstock, I'm happy to walk through your options and explain how the process works. No pressure. Just information that helps you make a good decision.

Jay Friesen is a REALTOR® based in Woodstock, Ontario, serving buyers and sellers throughout Oxford County. Reach out anytime to start the conversation.