Section 01

New build vs resale in London: an honest comparison

Last reviewed October 30, 2026

Neither is better in general. Each suits different buyers, budgets and timelines. Here's how they compare on the things that actually affect your money and your life.

Where new builds win

Low maintenance for years

A new home's roof, furnace, windows, plumbing and electrical are all at the start of their lifespans. For buyers who've owned older London homes, many of which date from the 1950s to 1980s, that can mean years without a major repair bill.

The warranty

Ontario's statutory warranty, administered by Tarion, covers workmanship and materials for a year, systems and the building envelope for two, and major structural defects for seven. See the Tarion guide. No resale home comes with that.

Modern layouts and efficiency

Open-plan living, larger primary suites, more bathrooms and better insulation and windows are standard in most new homes. Running costs for heating and cooling are often lower than in an older home of similar size.

Rebates for some buyers

First-time buyers may qualify for the federal GST rebate on new homes, and Ontario has announced a temporary enhancement to its new housing rebate. These can make a big difference. See rebates.

Where resale wins

Location and established neighbourhoods

If you want mature trees, a walkable main street, or a short trip downtown, the established neighbourhoods have them, and new subdivisions generally don't, at least not for years. Areas like Old North, Wortley Village, Byron and Westmount are almost entirely resale.

Certainty and speed

You can inspect the actual home, see the actual lot, meet the actual neighbours and move in within weeks. With pre-construction, you're buying from plans and a model home, and the timeline depends on the builder.

Lower all-in cost, sometimes

New builds come with extras that quickly add up: upgrades, lot premiums, closing adjustments, landscaping, fencing, window coverings, and sometimes appliances. A resale home usually comes with all of these. Compare the all-in cost, not the starting price.

Negotiating room

Resale prices are set by the market and can be negotiated. Builders sometimes negotiate on upgrades or closing costs, but they're often less flexible on base price, especially in a busy phase.

Hidden costs of new builds to budget for

• Upgrades beyond the standard finishes. Many buyers spend far more than they planned. See upgrades.
• Closing adjustments such as development charges, utility connections and Tarion fees. See closing costs.
• Landscaping, fencing and decks, which are often not included.
• Window coverings, light fixtures and appliances, depending on the builder.
• Interim occupancy fees for new condos.
• Carrying costs if you're also paying rent or another mortgage while you wait.

Who each suits

New build tends to suit buyers who are flexible on timing, want low maintenance and modern layouts, are happy in growth areas, and can manage a longer process. It also suits first-time buyers who qualify for the new rebates.

Resale tends to suit buyers who need to move on a specific date, want an established neighbourhood, want to see exactly what they're getting, or would rather put money into renovating to their own taste.