If you build new homes for sale in Canada, whether you need a new-home warranty depends entirely on the province. In four provinces it is mandatory and acts as a registration gate: you cannot legally sell or even start building a home for sale without enrolling it and holding the right builder licence. Those four are Ontario (Tarion, regulated by the HCRA), British Columbia (the 2-5-10 warranty), Quebec (the GCR plan) and Alberta (the ANHWP scheme, mandatory since February 1, 2014). Everywhere else, warranty is voluntary, though lenders often require it anyway.
The four mandatory provinces (the registration gate)
In Ontario, BC, Quebec and Alberta, you cannot lawfully commence construction for sale, offer a new home for sale, or transfer title, without first holding the required builder licence and enrolling the home in the warranty program. Breaching this exposes you to regulatory penalties, injunctions, and the sale being void.
Ontario: Tarion, regulated by the HCRA. You need a Home Construction Regulatory Authority (HCRA) builder licence before selling any new home, then you enrol each home with Tarion. The statutory warranty runs in three layers: a 1-year warranty on workmanship, materials and Ontario Building Code compliance; a 2-year warranty on water penetration, the major delivery and distribution systems (heating, plumbing, electrical) and exterior cladding; and a 7-year warranty on major structural defects. Coverage limits are up to $400,000 for a freehold home. A 2026 rule requires freehold purchasers to register with Tarion within 45 days of the agreement of purchase and sale to get full deposit protection.
British Columbia: the 2-5-10 warranty. You must be a BC Housing Licensed Residential Builder, and the home must be enrolled before construction starts. The warranty is 2 years on materials and labour, 5 years on the building envelope including water penetration, and 10 years on structural defects. Limits are the lesser of the purchase price or $200,000 for a detached home. It is often described as Canada's strongest construction-defect insurance, and it transfers to the next owner on resale.
Quebec: the GCR plan (Quebec stands alone). Quebec runs its own scheme, the Garantie de construction residentielle (GCR), administered by a non-profit under provincial regulation. You need an RBQ licence (subclass 1.1.1 or 1.1.2) plus GCR accreditation. The plan covers obvious defects at delivery, a 1-year layer for non-obvious existing defects, a 3-year layer for defects, and a 5-year layer for major structural defects. It covers deposits up to $50,000 and post-delivery defects up to $300,000 for a single-family home. It applies to houses and small multi-unit buildings up to four stacked units; large high-rise condos are excluded.
Alberta: the New Home Buyer Protection Act (ANHWP and others). Mandatory for all homes whose building permit was applied for after February 1, 2014. Coverage must be in place before the building permit can be issued, and the home cannot be listed for sale without coverage registered. The structure is 1 year on labour and materials, 2 years on delivery and distribution systems, 5 years on the building envelope, and 10 years on major structural components. Several approved providers operate, including the Alberta New Home Warranty Program.
The voluntary provinces
Outside those four, enrolment is at the builder's election. There is no licensing gate tied to the warranty, but most Canadian lenders require a third-party home warranty as a condition of a new-home mortgage, so in practice many builders enrol anyway.
- Saskatchewan: the Saskatchewan Home Warranty Program is voluntary, typically 1-year workmanship and 5-year structural cover.
- Manitoba: the New Home Warranty Program of Manitoba is voluntary, typically 1-year workmanship, 2-year systems and structural cover through year 5.
- Atlantic Canada (NS, NB, NL, PEI): the Atlantic Home Warranty Program covers all four provinces voluntarily, with 1-year builder liability, 2-year distribution systems, and major structural defect cover out to 10 years, capped at $70,000 per home, materially lower than the mandatory-province limits.
What this means for you
- If you build for sale in ON, BC, QC or AB, sort the builder licence and warranty enrolment before you do anything else. It gates the whole project.
- If you build in a voluntary province, you may not be legally required to enrol, but check the lender's conditions early, because the buyer's mortgage may demand it.
- Warranty enrolment fees and per-unit charges vary by program, rating and year; confirm the current schedule with the program directly rather than relying on a figure you saw once.
Common mistakes
- Starting a home for sale before enrolling, in a mandatory province. The sale can be void and you face penalties. In BC, de-enrolling mid-build halts construction.
- Assuming "new home" means new-home-warranty everywhere. It is mandatory in four provinces only.
- Treating the warranty as your CGL. It protects the buyer's home; it is not your liability or property cover.
- Quoting a buyer the wrong coverage layers. The 1-year, structural and envelope periods differ by province; state the right ones for where you build.
Know someone who needs this?
Keep reading
Was this guide useful?
Didn't find what you were looking for?
Spotted something wrong or out of date? Email us at hello@kilnguides.co.uk.
In crisis? 988 Suicide Crisis Helpline (call or text 988) ·