An assignment gets you a brand-new home, often with a new-home warranty and upgrades, but needs more cash up front and carries appraisal and delay risk. A resale lets you inspect the property and close on a fixed date with a smaller upfront payment. The better choice depends on your timeline, cash and risk tolerance.
Key takeaways
- Assignments suit buyers who can wait for closing and have cash for the deposit refund.
- Resale suits buyers who need certainty, want to inspect, or need to move soon.
- New builds in Ontario come with Tarion warranty coverage; resales don’t.
- Compare the all-in cost, including closing adjustments and taxes, not just the sticker price.
Side-by-side comparison
| Assignment | Resale | |
|---|---|---|
| Condition | Brand new | Lived in |
| Inspection | Usually not possible before closing | Home inspection before buying |
| Closing date | Set by the builder, can be delayed | Negotiated and fixed |
| Cash at signing | Deposit refund + assignor’s profit | Deposit (often 5%) with the down payment at closing |
| Warranty | New-home warranty (Tarion in Ontario) | None beyond the sale terms |
| Extra costs | Builder adjustments, possible HST on profit portion | Standard closing costs |
| Main risk | Appraisal gap, delays | Hidden repairs, bidding wars |
When does an assignment make more sense?
If you want new construction in a specific building that’s sold out, like the idea of upgrades already selected, and can carry the upfront cash until closing, an assignment can be a good fit. It can also mean buying at a price set before recent increases, depending on the market.
When is a resale the better choice?
If you need to move by a certain date, want to see and inspect exactly what you’re buying, or have limited cash up front, resale is simpler. Resale also avoids builder consent and assignment fees.
Questions to ask before buying an assignment
- What are the occupancy and final closing dates, and can the builder extend them?
- Are closing adjustments and development charges capped?
- Who pays the assignment fee and any HST on the profit?
- Does the builder allow assignment to me without restrictions?
- What upgrades are included?
Browse current assignment listings to compare real numbers.
Frequently asked questions
Is it cheaper to buy an assignment or a resale?
It depends on the market. Assignments can be priced below comparable new launches, but costs like builder adjustments and HST on the profit portion can narrow the gap.
Can I inspect an assignment before buying?
Usually not, since the unit is under construction. Ontario new homes get a pre-delivery inspection with the builder and warranty coverage.
Do assignments come with a warranty?
Yes. In Ontario, new homes are covered by the Tarion warranty program, which carries over to the assignee.
Buying or selling an assignment?
Browse live assignments or post yours for free on Assignment Connect.
Sources
This guide is general information, not legal, tax or financial advice. Rules change and every agreement is different, so speak with a real estate lawyer, accountant or mortgage professional about your situation.