Closing Costs on a New Build Home or Condo in Ontario

Buying from a builder means your closing looks different from a resale purchase. Along with the usual legal and tax items, you may see the Tarion enrolment fee passed on to you through the statement of adjustments.

This article walks through the main items that can appear on a new build closing in Ontario and the rebates that may offset them. What a builder may pass on to you depends on your own purchase documents, so treat this as a map for your own reading and confirm the details with a lawyer.

What closing costs usually include

Closing costs are one-time fees paid when you buy a home, such as inspection fees, legal fees, property tax adjustments and title insurance. Buyers should budget 1.5% to 4% of the purchase price for them.

On a new build, the builder may also pass some costs on to you, for example the Tarion enrolment fee through the statement of adjustments. Which items the builder may pass on to you is set by your agreement of purchase and sale and the Tarion Addendum, so check those documents line by line.

Builder adjustments and Tarion fees

The Tarion enrolment fee is a one-time fee payable by the vendor for a new home. From September 1, 2025, the schedule includes a $55-per-home adjustment, and the average fee is $1,790. There is no change for homes priced at $550,000 or below.

Tarion notes that vendors commonly pass the fee to buyers in the statement of adjustments. Other builder charges may also appear on your closing documents. Whether you can be charged for them depends on your agreement, so ask your lawyer to explain each line before closing.

HST, rebates and land transfer tax

Several tax items can apply to a new home. The table sets out the main ones.

The federal rebate is full for homes up to $1 million, reduced between $1 million and $1.5 million, and nil at $1.5 million or more. You must be 18 or older, a citizen or permanent resident, and the first occupant using the home as a primary residence.

The Ontario enhanced rebate is full up to $1 million, a flat $80,000 from $1 million to $1.5 million, and a partial amount above $1.5 million and below $1.85 million. Homes at $1.85 million and above get only the base Ontario new housing rebate of up to $24,000. Rules for claiming and for builders crediting the rebate may still be changing, so confirm the current position with your lawyer or accountant.

For land transfer tax, the value of the consideration includes the purchase price, any liabilities assumed, benefits conferred, soft costs and the cost of upgrades. It does not include HST paid on the purchase price. First-time buyers may be eligible for a refund of up to $4,000 if they meet the conditions.

Deposit protection and late closings

For agreements signed on or after January 1, 2018, Tarion protects deposits on freehold homes up to $60,000 if the price is $600,000 or less. Above $600,000, protection is 10% of the price to a maximum of $100,000. For condominium units, protection is up to $20,000 plus limited accrued interest.

If a builder misses the firm closing date (freehold) or firm occupancy date (condo) without a mutual extension or an unavoidable delay, the buyer gets delayed closing compensation of up to $7,500. This includes $150 per day for living expenses with no receipts needed. Other costs such as moving or storage are also covered but need receipts.

What to do next

• Ask the builder's lawyer or your own for a draft statement of adjustments well before closing.
• Compare each adjustment against your agreement and the Tarion Addendum.
• Confirm which HST rebates you qualify for and how they will be credited.
• Keep receipts if the builder delays closing, since some compensation needs them.
• Check whether you qualify for the first-time buyer land transfer tax refund.

Frequently asked questions