The Ontario Home Builders’ Association has announced an important update regarding the implementation of the 10-day cooling-off period for buyers of new freehold homes. Originally scheduled to take effect on January 1, 2026, the start date has now been deferred to January 1, 2027 following a review of current market conditions by the Ministry of Public and Business Service Delivery and Procurement.

This policy, introduced in August 2024, was designed to give purchasers additional time to review their purchase agreements and make informed decisions. Under the new timeline, starting January 1, 2027, buyers who sign a purchase agreement for a new freehold home will have 10 days to reconsider their purchase. If they choose to cancel during this period, their deposit will be returned in full, without penalty.

This is an important step in the right direction on a policy that OHBA has been actively lobbying the government to reconsider since its introduction in August 2024. OHBA has consistently raised concerns about the impact of a mandatory cooling-off period on builder agreements, project timelines, and market stability, particularly in today’s challenging economic environment.

 The government’s decision to delay implementation is seen as a positive step toward balancing consumer protection with practical considerations for builders.

The Ministry has committed to providing stakeholders with updates on any additional regulations well in advance of the new implementation date. OHBA will continue working closely with the government to ensure that future regulations respect consumer confidence while maintaining a fair and workable process for builders.

For more details, you can review OHBA’s earlier submission on this policy here.