Home Warranty Program

Explore what a Home Warranty Program covers in Canadian real estate, who manages it, and how it protects new homebuyers from construction defects.

Home Warranty Program

May 22, 2025


What is a Home Warranty Program?

A Home Warranty Program is a form of insurance that protects new homebuyers from defects in workmanship, materials, and major structural components for a set period after purchase.

Why Home Warranty Programs Matter in Real Estate

In Canada, many provinces require builders to enroll new homes in a licensed home warranty program, especially for new construction or pre-construction properties. These programs provide peace of mind to buyers by covering specific defects or issues that arise after occupancy.

Coverage typically includes:
  • One year for labour and materials
  • Two years for systems like plumbing, heating, and electrical
  • Seven years for major structural defects

Programs vary by province. In Ontario, for example, Tarion administers the mandatory new home warranty program. In British Columbia, it's overseen by BC Housing. Coverage may also extend to delayed closings and deposit protection.

Understanding a home warranty program helps buyers know what is covered, what’s excluded, and how to file claims if issues emerge. Buyers should keep all documentation, inspection reports, and correspondence related to their home in case warranty service is needed.

Example of a Home Warranty Program?

After moving into a new townhouse in Toronto, a homeowner discovers plumbing leaks. The issue is covered under the two-year warranty, and the builder arranges repairs through Tarion.

Key Takeaways

  • Protects buyers from defects in new homes.
  • Mandatory in several provinces for new construction.
  • Offers 1–2 years for materials and systems, 7 years for structure.
  • Varies by jurisdiction (e.g., Tarion in Ontario).
  • Important to document issues and submit claims on time.

Related Terms

  • New Construction
  • Pre-Construction Condo
  • Builder Warranty
  • Deficiency Inspection
  • Tarion

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Toronto Slashing DCs By Up To 60% As Ontario Municipalities Sit On Billions In Reserves

Toronto Slashing DCs By Up To 60% As Ontario Municipalities Sit On Billions In Reserves
Shutterstock

Ontario was sitting on roughly $10.5 billion in development charge (DC) reserves by the end of 2024, according to a recent report from Desjardins that argues municipalities have become overly accustomed to the fees as a source of revenue.

More controversial still, DCs remain one of the most serious obstacles to new housing in a province where affordability is crumbling.

Keep ReadingShow less

ELM And Fiera Break Ground At 270 Sheppard West

ELM And Fiera Break Ground At 270 Sheppard West

ELM Developments

ELM Developments and Fiera Real Estate acquired the assembly at 270 Sheppard Avenue West on January 29. They broke ground on June 17.

In a market where rental projects routinely spend years in rezoning, moving from purchase to shovels in under five months is the point — and at 270 Sheppard, they planned it that way.

Keep ReadingShow less

Canderel Breaks Ground On Forêt Forest Hill With Five-Bank Financing In Place

Canderel Breaks Ground On Forêt Forest Hill With Five-Bank Financing In Place

(liveatforet.ca)

At Bathurst and St. Clair, Canderel has officially started construction on Forêt Forest Hill — its three-tower, master-planned community in midtown Toronto.

The development has secured construction financing from a consortium of five major Canadian banks led by CIBC, with National Bank, TD, Desjardins, and Laurentian Bank rounding out the group.

Keep ReadingShow less

The 6 Key Takeaways From CMHC's 2026 Mid-Year Rental Market Update

The 6 Key Takeaways From CMHC's 2026 Mid-Year Rental Market Update

(CMHC)

Last week, Rentals.ca published their latest rental market report, noting that the average asking rent in Canada declined by 4.7% year over year in May, marking the 20th consecutive month to see a year-over-year decline.

“Since reaching a low of $1,662 in April 2021 during COVID-19, average rents have risen 22.1%, but have declined 7.8% from the high of $2,202 in May 2024,” they said.

Keep ReadingShow less

Ontario Brokerages Required To File Finances With RECO Starting This Fall

Ontario Brokerages Required To File Finances With RECO Starting This Fall
Shutterstock

Ontario real estate brokerages are getting a new piece of homework, courtesy of their regulator.

Starting October 1, 2026, every brokerage in the province will have to attest to and submit an annual financial filing to the Real Estate Council of Ontario (RECO) — a requirement meant to give RECO a clearer, more consistent look at how brokerages manage money, and specifically the funds they're holding in trust on behalf of buyers and sellers.

Keep ReadingShow less

Spring Market At Last? Canadian Home Sales Jumped 5.5% In May

Spring Market At Last? Canadian Home Sales Jumped 5.5% In May
Shutterstock

After a spring that never quite got going, the Canadian housing market found a gear in May.

Home sales across Canadian MLS® Systems rose 5.5% from April, according to the Canadian Real Estate Association (CREA) — the first month in 2026 to post any meaningful upward momentum in headline demand.

Keep ReadingShow less

Peterson Revises 3-Building Metrotown Project To 1,065 Units

Peterson Revises 3-Building Metrotown Project To 1,065 Units

A rendering of the proposal for 6645, 6659, 6675, 6691 and 6707 Dow Avenue in Burnaby. (Peterson, BOP Architects)

The Metrotown neighbourhood of Burnaby has seen a tremendous amount of redevelopment over the years, and several projects are currently under construction, but one project has remained idle for over six years now.

The subject site is 6645, 6659, 6675, 6691 and 6707 Dow Avenue, just off of Beresford Street and Central Boulevard, across the street from the Metropolis at Metrotown shopping centre.

Keep ReadingShow less

Toronto Rail Yards Would Bring 4,000 Homes To Downtown Rail Corridor

Toronto Rail Yards Would Bring 4,000 Homes To Downtown Rail Corridor

Fengate

What do New York City’s Hudson Yards, Chicago’s Millennium Park, and Paris’s Rive Gauche have in common? They’re all built directly on top of active railway lines. And Toronto has fresh plans to do the same – this time, as a brand-new mixed-use community rather than a standalone park.

For years, what to do with the airspace above the Union Station rail corridor has been a hot topic. Former Toronto mayor John Tory famously proposed Rail Deck Park – a 21-acre green space with a $1.7 billion price tag – back in 2016. Now, following several years of planning and ownership consolidation, the LiUNA Pension Fund of Central and Eastern Canada and master developer Fengate Asset Management have unveiled reworked plans for an entire mixed-use community called Toronto Rail Yards.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.