Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
What's Your Home Worth Right Now?
Get a free AI-powered price range for your property in under 90 seconds, based on recent GTA comparable sales. No name or address required.
Get My Free Estimate →
On a new build in Ontario you pay land transfer tax, legal fees and the builder adjustments listed in Schedule B of the Tarion Addendum, such as the Tarion enrolment fee, HCRA fee, utility hookups and levy increases. HST applies too. On a $900,000 home, known items alone are about $16,859 outside Toronto and $31,334 inside it.
This guide is for anyone buying a newly built house, townhouse or condo from a builder in Ontario who wants to know what will be added on top of the purchase price at closing. You will see the common builder adjustments, how HST and the 2026–27 rebates work, a worked example on a $900,000 home, and the protections Tarion gives you.
What are closing costs on a new build in Ontario?
New-build closing costs fall into two groups. The first group is the same as any purchase: land transfer tax, legal fees and title insurance. The second group is specific to new homes: the adjustments a builder adds to the price on closing day, and HST.
The key document is the Tarion Addendum attached to every new-home purchase agreement. Tarion explains that the builder must list the fees and charges it expects you to pay in Schedule B of the Addendum. If a charge is not listed there, the builder cannot make you pay it. So the single most useful thing you can do is read Schedule B before you sign, with a lawyer.
What do builders add to the price at closing?
Every builder’s Schedule B is different. These are the items I see most often on freehold homes in the GTA:
- Tarion enrolment fee, plus HST. Builders pay it to enrol the home in the warranty program and many pass it on.
- HCRA regulatory oversight fee of $170 per home, plus HST, according to the Home Construction Regulatory Authority.
- Development charge or levy increases. Some agreements pass on any increase in municipal charges after you sign, sometimes with a cap.
- Utility connections and meters for water, hydro and gas.
- Grading or landscaping deposits, usually refunded only after the city approves final grading.
- Prepaid property tax, if the builder has already paid tax past your closing date.
Ask the builder to put a dollar figure or a firm cap beside each item, and ask whether HST is added on top. My guide to pre-construction closing costs in Mississauga shows how these lines add up on a real freehold example.
How much is the Tarion enrolment fee on a new home?
Tarion sets the fee by sale price (before HST). The current schedule took effect 1 September 2025, and Tarion says 13% HST applies to it. A few bands:
| Sale price band (excluding HST) | Tarion fee | HST | Total |
|---|---|---|---|
| $550,000.01 – $600,000 | $1,075 | $139.75 | $1,214.75 |
| $750,000.01 – $800,000 | $1,740 | $226.20 | $1,966.20 |
| $850,000.01 – $900,000 | $1,940 | $252.20 | $2,192.20 |
| $950,000.01 – $1,000,000 | $2,075 | $269.75 | $2,344.75 |
| $1,250,000.01 – $1,500,000 | $2,315 | $300.95 | $2,615.95 |
Source: Tarion, Enrolment Fees, effective 1 September 2025.
Whether you pay this depends entirely on your agreement. If Schedule B says the builder passes it on, it will appear on your statement of adjustments.
Do you pay land transfer tax on a new build in Ontario?
Yes. Land transfer tax applies to new homes the same way it applies to resale homes, and the buyer pays it on closing. There is one helpful rule: Ontario’s Ministry of Finance says that when HST applies to a purchase, the value used for land transfer tax does not include the HST. Inside the City of Toronto you also pay the municipal land transfer tax.
First-time buyers can get up to $4,000 back from Ontario and, in Toronto, up to $4,475 back from the city. On a $900,000 home, Ontario land transfer tax is $14,475, and Toronto adds another $14,475. My guide to land transfer tax in Toronto has more price points.
How does HST work on a new build in Ontario in 2027?
New homes carry 13% HST: 5% federal and 8% Ontario. Builder price sheets often include HST, with certain rebates assigned to the builder, so check exactly what your agreement assumes. The rebate rules changed a lot in 2025 and 2026:
- Ontario new housing rebate: up to $24,000 of the 8% provincial part, available whatever the price.
- Federal First-Time Home Buyers’ GST rebate: for first-time buyers with an agreement signed after 26 May 2025 and before 2031. Full GST relief up to $1 million (maximum $50,000), phasing out to zero at $1.5 million.
- Ontario enhanced new housing rebate: for buyers who will live in the home (or a relative will), with an agreement signed from 1 April 2026 to 31 March 2027. The CRA’s Notice 346 (August 2026) says it, together with the Ontario new housing rebate, can cover the full 8% provincial part on homes up to $1 million, capped at $80,000, with the relief shrinking above $1.5 million and ending at $1.85 million.
- Ontario new home affordability payment: for people entitled to the enhanced rebate. Up to $50,000, equal to the 5% federal part, minus any federal rebate you already get. The builder may credit it to you.
Here is what that means on a $900,000 home (price before HST), assuming you meet each program’s rules:
| Buyer situation, $900,000 new home | HST charged | Rebates | HST left to pay |
|---|---|---|---|
| Will live there, agreement outside 1 Apr 2026 – 31 Mar 2027, not a first-time buyer | $117,000 | $24,000 (Ontario rebate) | $93,000 |
| First-time buyer, agreement outside the Ontario window | $117,000 | $24,000 + $45,000 federal | $48,000 |
| Will live there, agreement signed 1 Apr 2026 – 31 Mar 2027 | $117,000 | Up to $72,000 Ontario + up to $45,000 federal part | As low as $0 |
Source: CRA Notice 346, Ontario Enhanced New Housing Rebate (August 2026); Ontario Ministry of Finance, land transfer tax and HST; federal First-Time Home Buyers’ GST rebate rules. My arithmetic; eligibility must be confirmed with the CRA and your lawyer.
The deadline matters: the Ontario window closes on 31 March 2027 for agreements with a builder. My new-home HST rebate guide goes deeper on each program.
Free tool — what can you actually afford?
What is a worked example of new build closing costs?
Take a $900,000 new freehold townhouse (price before HST) bought by someone who will live in it. HST is assumed to be fully handled through rebates credited by the builder. I show Toronto and outside Toronto side by side. Builder adjustments beyond Tarion and HCRA vary too much to guess, so they are left as lines for you to fill in from Schedule B.
| Closing cost | Outside Toronto | Inside Toronto |
|---|---|---|
| Ontario land transfer tax | $14,475 | $14,475 |
| Toronto municipal land transfer tax | $0 | $14,475 |
| Tarion enrolment fee + HST (if passed on) | $2,192.20 | $2,192.20 |
| HCRA fee + HST (if passed on) | $192.10 | $192.10 |
| Subtotal of known items | $16,859.30 | $31,334.30 |
| Subtotal after maximum first-time buyer land transfer refunds | $12,859.30 | $22,859.30 |
| Development charge or levy increase, utility connections, grading deposit | Per your Schedule B | |
| Legal fees, disbursements, title insurance | Per your lawyer’s written quote | |
Source: Ontario Ministry of Finance and City of Toronto land transfer tax rates; Tarion enrolment fee schedule; HCRA licensing fees. My arithmetic.
If you do not qualify for a rebate the builder assumed in the price, the gap is usually charged to you on closing. On this example, that could be anywhere from $24,000 to $117,000, so confirm eligibility before you sign, not after.
Can a builder charge you development charges at closing?
Development charges are fees municipalities collect from developers to pay for roads, pipes, transit and other growth costs. They are large. In Mississauga, the total charge for a single or semi-detached home from 1 August 2026 to 31 January 2027 is $139,019.54, including City, Region of Peel and school board charges, according to the City of Mississauga.
Builders build these charges into the price. The risk for you is a Schedule B clause that passes on any increase in charges between signing and closing, or a separate levy line. Ask for a hard dollar cap and whether HST applies on top. My post on development charges in the GTA explains how they are set.
What protections do new home buyers have in Ontario?
Tarion backs several protections that can save you money if things go wrong:
- Deposit protection. For freehold homes under agreements signed since 1 January 2018, Tarion protects up to $60,000 on homes priced at $600,000 or less, and 10% of the price up to $100,000 above that. Condo deposits are protected up to $20,000, and must also be held in trust under the Condominium Act.
- Delayed closing compensation. On freehold homes, if the builder misses the firm closing date without a valid reason, Tarion says you can get up to $7,500, with living costs paid at a fixed $150 a day without receipts.
- Pre-delivery inspection. Before you take possession, you walk through the home with the builder and record problems on a form you sign.
Read more on how much of a freehold deposit is protected. If you are buying a new condo, you may also pay a monthly occupancy fee before the building registers; see interim occupancy explained.
Rebate eligibility is decided at closing, not at signing. If you sign as an owner-occupier and later decide to rent the home out, or if a co-buyer has owned before, the builder may charge the rebate amount back to you on closing day. The CRA notice says the builder and buyer can both be liable if a rebate was credited to someone not entitled to it. Tell your lawyer exactly how you plan to use the home.
On a new build, the price on the sales sheet is only the starting point. Before you sign, I would ask the builder for a written estimate of every Schedule B adjustment at your price, a cap on development charge increases, and confirmation of which HST rebates are already built into the price. Then have a real estate lawyer review it before you sign, or while any cooling-off right you have still applies. With the Ontario enhanced rebate window ending 31 March 2027, the timing of your signature could be worth tens of thousands of dollars.
What to do next
- Ask the builder for Schedule B and a written estimate of each adjustment at your price.
- Confirm which HST rebates you qualify for, and whether the price assumes them.
- Calculate land transfer tax at your price, adding Toronto’s tax if the home is in the city.
- Have a real estate lawyer review the agreement and Addendum before you sign, or while any cooling-off right still applies.
- Set aside cash for adjustments, legal fees and moving on top of your down payment.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
What are the closing costs on a new build in Ontario?
Closing costs on a new build in Ontario include land transfer tax, legal fees and title insurance, plus builder adjustments listed in Schedule B of the Tarion Addendum. Common adjustments are the Tarion enrolment fee, the $170 HCRA fee plus HST, utility connections, grading deposits and any development charge increases. HST is also due, usually reduced by rebates credited by the builder.
How much are closing costs on a new construction home in Ontario?
On a $900,000 new home in 2026, the known items alone are about $16,859 outside Toronto and $31,334 inside Toronto: land transfer tax, the Tarion enrolment fee and the HCRA fee with HST. Builder adjustments, legal fees and any HST you do not get rebated are added on top, so ask the builder for Schedule B estimates.
Do you pay HST on a new build in Ontario?
Yes. New homes in Ontario carry 13% HST, 5% federal and 8% provincial, but most of it is often offset by rebates the builder credits on closing. For agreements signed from 1 April 2026 to 31 March 2027, buyers who will live in the home may get full relief of the provincial part up to $80,000, according to CRA Notice 346.
Do you pay land transfer tax on a new build in Ontario?
Yes. Buyers pay Ontario land transfer tax on new homes on closing, and inside the City of Toronto they also pay the municipal land transfer tax. The Ontario Ministry of Finance says the value used for the tax does not include HST. On a $900,000 home, Ontario’s tax is $14,475 and Toronto’s is another $14,475.
Who pays the Tarion enrolment fee in Ontario?
The builder pays the Tarion enrolment fee to enrol a new home, but many Ontario builders pass it on to the buyer through Schedule B of the agreement. As of the schedule effective 1 September 2025, the fee is $1,940 plus $252.20 HST on a home priced between $850,000.01 and $900,000. Check Schedule B to see if you pay it.
Can a builder add charges not in the agreement in Ontario?
No. Tarion says builders must list the fees and charges they expect the buyer to pay in Schedule B of the Addendum, and if a cost is not listed there, the builder cannot make the buyer pay it. Read Schedule B with your lawyer before signing, and ask for dollar amounts or caps beside each item.
What happens if I don’t qualify for the HST rebate on a new home?
If you do not qualify for an HST rebate that the builder already built into your price, the builder will usually charge you that amount on closing in Ontario. On a $900,000 home it could range from $24,000 to $117,000 depending on the program. CRA Notice 346 says both builder and buyer can be liable if a rebate was credited wrongly.
How much of my deposit is protected on a new home in Ontario?
For freehold homes bought under agreements signed since 1 January 2018, Tarion protects deposits up to $60,000 on homes priced at $600,000 or less, and 10% of the price up to $100,000 on homes above $600,000. Condo deposits are protected up to $20,000, and must also be held in trust under the Condominium Act.
What compensation do I get if my new home closing is delayed in Ontario?
For freehold new homes in Ontario, Tarion says builders must pay up to $7,500 if they miss the firm closing date without a valid reason, with living expenses paid at a fixed $150 a day without receipts. If the builder gives less than 10 days’ notice of a delay, you get $1,500. Claims go to the builder first, then Tarion.
Sources
- Tarion: What is the Addendum and why should every new home buyer care?
- Tarion: Enrolment fees
- Tarion: Freehold contract coverage, closing dates and delays
- Tarion: Coverage before you close (deposit protection)
- HCRA: Licensing fees
- CRA Notice 346: Ontario Enhanced New Housing Rebate
- Ontario Ministry of Finance: Calculating land transfer tax
- City of Mississauga: DC rates by service, 1 August 2026 to 31 January 2027
Related reading
- Seller Closing Costs in Ontario for 2027: Every Fee Before You Get Paid
- How to Sell a House in Toronto, Step by Step (2027)
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.