Interim Occupancy vs Final Closing

The timeline, step by step

1. You sign the Agreement of Purchase and Sale and pay deposits on the staged schedule in the agreement.
2. Construction finishes on your unit. You do a pre-delivery inspection and note any deficiencies.
3. Interim occupancy begins. The unit is ready to live in, but the condominium is not yet registered. You move in and pay a monthly occupancy fee to the builder.
4. The condominium is registered. The corporation comes into existence and the units can be conveyed.
5. Final closing. Title transfers to you, your mortgage funds, and you pay land transfer tax and closing costs. The occupancy fee stops and mortgage payments begin.

How long the occupancy period lasts depends on the project — on how many units must be ready, on registration timing, and on construction progress. This guide gives no standard duration, because there is no verified standard: the dates that matter are the ones in your own agreement and disclosure statement, and your lawyer should confirm them with you.

What the occupancy fee covers

The monthly occupancy fee generally covers three things: interest on the unpaid balance of the purchase price, estimated monthly property taxes, and projected condominium maintenance fees. It is not a mortgage payment and it does not reduce the amount you owe — the principal balance stays the same throughout the occupancy period.

Because the fee is built from estimates, it can be adjusted: if the actual taxes or condo fees come in higher than estimated, the difference is reconciled, usually at final closing. Ask the builder for the fee breakdown in writing and have your lawyer check how adjustments are handled in your agreement.

During interim occupancy you cannot make mortgage payments, because title has not transferred and there is nothing for the mortgage to attach to. You are paying to occupy a home you do not yet own — which is why the length of the occupancy period matters so much to your budget.

What changes at final closing

Two things to plan for. First, your mortgage is re-verified at final closing — income, employment and debts are checked again, and a change since signing can affect qualification. Second, Tarion's warranty coverage periods run from the date of possession, so the warranty clock is already running during interim occupancy even though you do not yet own the home.

Worked example: OG Urban Towns, Mississauga

OG Urban Towns by Brightstone is a condominium townhome project in Cooksville, Mississauga, with occupancy scheduled for April 2028 (per the builder's July 17, 2026 preview price list). The deposit is 10% within 180 days, development charges are capped at $0, closing costs are capped at $5,000, and assignments are free — all confirmed in writing in Brightstone's October 30, 2026 broker email. The same email confirms buyers have the right to lease during occupancy.

What that means in practice: a buyer who takes occupancy in April 2028 pays the monthly occupancy fee from that date, may lease the unit during the occupancy period, and then pays land transfer tax and the remaining closing costs — capped at $5,000 by the builder — when the condominium registers and title transfers. The occupancy fee itself was not published for this project, so it cannot be budgeted from public information: ask the builder for the fee schedule before signing.

See OG Urban Towns on Findle

Freehold is different — don't mix up the dates

Interim occupancy is a condominium concept. A freehold home — a detached house or a freehold townhome — has no interim occupancy: there is one closing date, on which title transfers and the mortgage funds. When a freehold project publishes a date, it is a closing date.

Two real examples: North Gate Trails in Ajax lists tentative closings starting October 2027 for its freehold towns and detached homes, and Five Oaks in Oakville lists closings in September 2028 for its Ashford towns and March 2029 for its Advantage towns. Those are closing dates, not occupancy dates — there is no monthly occupancy fee period to budget for.

The same distinction applies to the 10-day cooling-off period: it exists only for new condominiums bought from a developer, under section 73 of the Condominium Act, 1998 — 10 calendar days from the later of receiving the signed agreement or the disclosure statement and Condominium Buyer's Guide. There is no statutory cooling-off period for a new freehold home. Source: Condominium Act, 1998, s. 73

Delays happen — know what protects you

Occupancy dates in builder documents are targets, not guarantees. If occupancy is delayed, the builder must give notice under the agreement and the Tarion framework, and delayed-closing compensation may apply — up to $7,500 under Tarion's program. The exact notice periods, compensation rules and your rights if a delay extends beyond the outside date are set out in your agreement and the Tarion addendum to it: have your lawyer walk you through them before you sign, not after a delay is announced.

If a delay means your mortgage approval or rate hold expires before final closing, you may need to re-qualify — at the rates and rules in force at that time. Mortgage qualification is tested at the higher of your contract rate plus 2% or 5.25%. Source: CMHC — calculating GDS/TDS

Limitations — what this guide does not cover

• Occupancy-fee amounts were unpublished for the projects we verified, including OG Urban Towns. This guide explains what the fee covers, not what it costs — get the figure from the builder.
• The length of the occupancy period is project-specific and was not published for the projects we verified. This guide states no standard duration.
• Assignment terms during occupancy were unpublished for most projects we verified. Whether you can assign your agreement — and whether the assignee takes over the occupancy period — is a question for your lawyer.
• Rates move: the Bank of Canada raised its policy rate to 2.50% on October 28, 2026 (prime 4.70%), with the next decision scheduled for December 9, 2026. Source: Bank of Canada, Oct 28, 2026

Projects used in this guide

• OG Urban Towns — Brightstone, Mississauga. Condo towns; occupancy April 2028; right to lease during occupancy.
• North Gate Trails — Lakeview Homes, Ajax. Freehold; tentative closings from October 2027 (closing dates, not occupancy).
• Five Oaks — Caivan, Oakville. Freehold; closings September 2028 (Ashford towns) and March 2029 (Advantage towns).