This is one of the most misunderstood parts of buying a pre-construction condo in Ontario — and it genuinely surprises a lot of first-time buyers, so it’s worth explaining clearly before you’re in the middle of it.
Two Separate Dates, Not One
For most condo purchases, there are two distinct milestones: interim occupancy (when you get the keys and can move in) and final closing (when you legally become the registered owner). These are often months — sometimes over a year — apart. Freehold pre-construction homes (detached and most townhomes) typically don’t have this split; they go straight from construction completion to a single final closing.
What Happens at Interim Occupancy
Once your unit passes final inspection and is ready, the builder gives you occupancy — you move in and start living there. But the building as a whole hasn’t yet been legally registered as a condominium corporation with the province, which means individual units can’t be legally transferred yet. You don’t have a mortgage yet either, because there’s no registered title for a lender to secure it against.
Occupancy Fees Aren’t Rent — But They Work Similarly
During interim occupancy, you pay the builder a monthly occupancy fee instead of a mortgage payment. It’s calculated to approximate three things: interest on the unpaid balance of the purchase price (as if you already had a mortgage), an estimate of your future condo maintenance fees, and municipal property taxes. It is not rent, and — importantly — it does not build any equity or count toward your purchase price the way a mortgage payment would.
What Happens at Final Closing
Once the condo corporation is registered, final closing can occur: this is when the actual purchase and sale legally completes, your mortgage is registered and funds, and you become the registered owner on title. Your lawyer handles the statement of adjustments at this point, reconciling everything paid during occupancy against the final purchase price.
Why the Gap Can Be Long
Registration timing depends on the municipality and the building’s own approval process, not just construction completion — this is largely outside the builder’s direct control, and delays are common industry-wide. It’s realistic to plan for several months between occupancy and final closing, and it’s worth asking about a specific project’s registration track record before you buy.
What to Budget For
Occupancy fees are a real, ongoing monthly cost during a period where you’re not yet building equity — factor this into your overall carrying-cost planning, not just the eventual mortgage payment after final closing. This is one of the specific things our team reviews with every buyer before they register for a launch, so there are no surprises about what the true monthly cost looks like in the interim period.