Interim Occupancy
You move in — but you don't own it yet.
In Ontario pre-construction condos, there's often a gap between when your unit is ready to move into and when the building is registered and title transfers to you. During that period — called interim occupancy — you pay a monthly fee to the builder instead of a mortgage payment.
How the fee is calculated
Ontario law caps your interim occupancy fee at three components:
- Prescribed interest on the unpaid balance of the purchase price (purchase price minus deposits paid), calculated at the Bank of Canada rate plus 2%
- Property tax allocation— the builder's estimate of your unit's monthly share of property taxes
- Common element fee estimate — an approximation of your maintenance fees (the actual amount is set once the condo is registered)
Unlike a mortgage, none of this reduces your purchase price— you're not building equity during interim occupancy. When final closing arrives, you still owe the full purchase price (less deposits).
How long does it last?
Interim occupancy periods in Ontario typically run 3 to 18 months, though some buildings have taken longer. The builder controls the registration timeline, and delays are common. Your purchase agreement will specify the estimated closing date and the builder's right to extend it.
What you should know before signing
- • You can rent out your unit during interim occupancy (unless the agreement restricts it)
- • The 10-day cooling-off period applies to the initial purchase agreement
- • Interim occupancy fees are not tax-deductible as mortgage interest
- • You will need property insurance from your occupancy date
- • The builder can extend occupancy — your agreement should cap the extension period
Estimate your fees
Enter your purchase details and estimated timeline to see a monthly and total cost projection.
Purchase details
Deposits reduce your unpaid balance for interest calculation
Timeline
When you take possession of the unit
When title transfers; typically 3–18 months after occupancy
Monthly allocations
Builder's estimated monthly property tax for the unit
Maintenance fee estimate from the builder
Monthly interim occupancy fee
Timeline summary
Important: The prescribed interest rate used here (6.72%) is an approximation. Under Ontario's Condominium Act, the builder sets the rate based on the Bank of Canada overnight rate plus 2%, updated quarterly. Your actual IOF will be confirmed by your builder and stated in the purchase agreement. This is an estimate only — not legal or financial advice.