What Is Tarion in Ontario? The Straight Answer on New Home Warranties (and What Homeowners Get Wrong)

The short answer: Tarion is the warranty administrator

Ontario’s new home warranty is not a “nice extra” – it is statutory, created by the Ontario New Home Warranties Plan Act. When a new home is built and sold by a registered builder or vendor, that warranty applies, and Tarion administers the program. In plain terms, Tarion sets the process for reporting defects, tracks the timelines, assesses disputes through conciliation, and provides financial protection within set limits if a builder cannot or will not meet its obligations.

Tarion vs HCRA: who does what (people get this wrong constantly)

Since 2021, Ontario split the job in two. Knowing which body to call saves you weeks of frustration:

Different roles, different tools. Warranty questions go to Tarion; builder licensing and conduct go to the HCRA.

What Tarion covers: the 1, 2 and 7-year windows

Coverage is discussed in three time buckets that start on your possession (or occupancy) date. The type of coverage and the reporting process change depending on how long you have lived in the home.

If Year 1 is “fit and finish,” Year 2 is “performance,” and the seven-year window is “structural integrity.”

2026 Tarion coverage limits (the caps)

Tarion coverage has maximum dollar limits that depend on home type and when the purchase agreement was signed. For agreements signed on or after July 1, 2023:

These caps matter for catastrophic situations and builder-failure scenarios – not for a sticky door latch. There is also deposit protection before you close (up to $150,000 for higher-priced freehold homes), and from January 1, 2026, buyers of new freehold homes are encouraged to notify Tarion of their purchase within 45 days of signing the agreement.

What Tarion does NOT cover

This is where most disputes start. Warranty is not the same as maintenance. Tarion generally does not cover:

• Damage you caused – or damage from a third party after possession.
• Normal wear and tear – and normal shrinkage/settling within accepted tolerances.
• Cosmetic items reported after the 1-year mark – the window for fit-and-finish closes.
• Maintenance issues – condensation and humidity from how the home is ventilated and lived in, for example.
• Items outside the builder’s scope – things you or a third party added after closing.

Building new? Don’t leave the HST rebate on the table

A Tarion warranty means a new build – and a new build qualifies for Ontario’s enhanced HST rebate, up to $130,000. It is a big number the closing paperwork rarely highlights, and the window to lock it in is closing.

The enhanced HST rebate applies to new home construction. Final eligibility for a custom or owner-built home is confirmed by a licensed rebate specialist - use the HST rebate calculator to check your number.

How to make a Tarion claim (the part that causes the drama)

Most warranty frustration is not about coverage - it is about the system being timeline-driven. You can have a legitimate issue and still get stuck if it is not reported correctly and on time. The process flows through your Pre-Delivery Inspection (PDI) and a set of reporting windows in the MyHome portal:

• 1. Document from day one - photos, short videos, dates, and a one-line note of where and when each issue happens. Start at the PDI.
• 2. Tell the builder in writing - written notice proves your timeline and gives the builder a clear chance to fix it.
• 3. Submit on time, through the proper channel - your rights are tied to the reporting windows (the 30-day form, year-end form, second-year form, and major structural defect form). "We talked about it" is not a submission.
• 4. Builder repair period - once items are submitted, the builder has a defined period to address them.
• 5. Conciliation if unresolved - Tarion assesses the items (often with an inspection) and decides coverage. It can direct the builder to repair, pay you directly, or, rarely, arrange a third party.

Delayed closing or occupancy? You may be owed compensation

Many buyers do not realize the warranty includes rules for delayed closing (freehold) and delayed occupancy (condo), with compensation up to a statutory maximum of $7,500 - made up of $150 per day for living expenses such as accommodation and meals, plus other delay costs like moving or storage. Whether you qualify depends on your agreement, the addendum language, and any exceptions. The takeaway: keep your paperwork, and read the dates before you get furious, not after.

Does Tarion cover a custom or owner-built home?

Here is the nuance that catches custom-home buyers. If a registered builder or vendor builds your home, the Tarion warranty applies - that includes a custom home built for you under contract. If you act as your own builder (owner-built), the standard warranty generally does not apply the same way. So the single best protection on a custom build is simple: use a Tarion-registered builder. That is exactly how we work - every custom home we build is Tarion-backed, with the full 7-year structural warranty, plus our own standing behind the work.

The Year-1 overlap with the Ontario Building Code

A lot of Year-1 claims come down to one question: does the home meet the Ontario Building Code? That is exactly what the warranty's workmanship coverage backs up. If you want to understand what your builder is actually required to deliver, the 2026 Ontario Building Code guide and OBC Code Navigator let you check specific requirements in plain English before you raise a claim.

Related building guides

• Cost to build a house in Ontario - the full 2026 budget picture.
• Construction contract in Ontario - the clauses that protect you alongside the warranty.
• How to get a building permit in Ontario - the approval that starts the clock.
• New Home HST Rebate Calculator - your net cost on a new build.
• 2026 Ontario Building Code guide - what your builder must deliver.

Frequently asked questions

What is Tarion and what does it do?

Tarion administers Ontario's statutory new home warranty under the Ontario New Home Warranties Plan Act. It sets the process for reporting defects, tracks the timelines, assesses disputes through conciliation, and provides financial protection within set limits if a builder cannot meet its obligations. Your builder still does the physical repairs.

What does the Tarion warranty cover?

Coverage runs in three windows from your possession date: Year 1 covers workmanship, materials, Building Code violations, fitness for habitation, and unauthorized substitutions; Year 2 covers water penetration, electrical/plumbing/heating delivery systems, and exterior cladding; and Years 3-7 cover major structural defects.

What is NOT covered by Tarion?

Damage you or a third party caused, normal wear and tear and settling, cosmetic items reported after the 1-year mark, maintenance issues like condensation from how the home is ventilated, and anything outside the builder's scope of work.

What is the difference between Tarion and HCRA?

Tarion administers the warranty (claims, timelines, conciliation). The HCRA (Home Construction Regulatory Authority) licenses and regulates builders and vendors. Warranty questions go to Tarion; builder-licensing and conduct questions go to the HCRA.

What are the Tarion coverage limits in 2026?

For agreements signed on or after July 1, 2023: freehold homes are covered up to $400,000, condominium units up to $300,000, condo common elements up to $100,000 per unit (max $3.5 million), and environmentally harmful substances up to $50,000.

How do I make a Tarion warranty claim?

Document the issue with photos and dates from your Pre-Delivery Inspection on, notify the builder in writing, and submit through the proper reporting window in the MyHome portal (the 30-day form, year-end form, second-year form, or major structural defect form). Miss the window and you can lose the right to that claim.

What is conciliation?

If the builder does not resolve covered items, conciliation is the step where Tarion assesses the items on your warranty form - usually including an inspection - and decides coverage. Tarion can then direct the builder to repair, compensate you directly, or, in rare cases, arrange a third party.

Can I get compensation for a delayed closing or occupancy?

Yes, in qualifying situations. The warranty provides compensation up to $7,500, made up of $150 per day for living expenses plus other delay costs like moving and storage. Eligibility depends on your agreement and addendum, so keep your paperwork and watch the dates.

Does Tarion cover a custom or owner-built home?

A custom home built by a registered builder or vendor under contract is covered. A home you build yourself as your own builder (owner-built) generally is not covered the same way. The simplest protection on a custom build is to use a Tarion-registered builder.

Is the Tarion warranty mandatory and who pays for it?

Yes - new homes built by a registered builder for sale are covered by the statutory warranty, and the builder is enrolled in the program. The enrolment fee is typically built into the price of the home rather than billed to you separately.

Disclaimer: This is an educational summary of Ontario's new home warranty as of 2026 and not legal advice. Coverage, limits, deadlines, and processes are set by Tarion and the Ontario New Home Warranties Plan Act and can change - confirm specifics with Tarion and your own advisor for your situation.