Tarion deposit protection — freehold: $60K (≤$600K homes) or 10% to $100K (>$600K); contract homes: $40K financial-loss coverage

Claim (current limits, freehold APS on/after Jan 1, 2018):

Contract homes (owner-land, contracted to a licensed builder): $40,000 Financial Loss Coverage if the builder fails to substantially perform.

Sources:

• Freehold: https://www.tarion.com/media/how-does-deposit-protection-work-new-homes
• Contract homes: https://www.tarion.com/coverage-before-you-close

Confidence: Verified.

Trigger: Deposit protection pays out if the agreement of purchase and sale is terminated through no fault of the buyer (typically builder insolvency or project cancellation). If the agreement is terminated, the deposit must be returned in full within 10 days.

Upcoming change: From April 1, 2026, freehold buyers must notify Tarion within 45 days of signing the APS to qualify for the full deposit coverage limit — see O. Reg. 17/25 freehold deposit change — from April 1, 2026, buyers must notify Tarion within 45 days of signing to qualify for full coverage; tier change deferred to Jan 1, 2027. The current limits remain in effect through that transition; the tier change is deferred to Jan 1, 2027.

Condo deposits are protected differently (trust-based with Tarion backup) — see Condo deposit protection — held in trust under Condominium Act s.81; Tarion backs up $20K if trust fails.