Warranty Programs

Home warranty programs provide essential protection for buyers of newly built houses and condominiums. In Ontario, Tarion administers the provincial warranty program under the Ontario New Home Warranties Plan Act. This mandatory coverage ensures that builders meet specific construction standards and fulfill their service obligations.

The Tarion warranty follows a tiered structure over seven years. The one-year warranty covers defects in work and materials, such as nail pops or minor cracks, and ensures the home meets the Ontario Building Code. The two-year warranty focuses on water penetration through the basement or foundation, electrical and plumbing system defects, and exterior cladding issues. The seven-year warranty covers major structural defects that compromise the home’s integrity or make it uninhabitable.

For those purchasing a pre-construction home, the warranty also includes deposit protection. If a builder fails to complete the project or goes bankrupt, Tarion protects a portion of your down payment. The coverage limits vary depending on the purchase price of the home. Once you move in, you must follow the formal reporting process. You submit statutory forms during specific windows—such as the 30-day or year-end period—to trigger your coverage.

Owners of older homes can purchase private home warranties. These service contracts differ from the Tarion program. Private plans typically cover the repair or replacement of major appliances and home systems like furnaces, water heaters, and air conditioners. These plans offer a layer of financial predictability against mechanical breakdowns. Whether you buy new or resale, understanding your warranty rights helps you manage the long-term costs of property ownership and ensures builders remain accountable for their work.