New home closing costs in Ontario: what to budget

Buying from a builder comes with costs a resale purchase doesn't have. Many of them appear on your statement of adjustments only weeks before closing, so budget for them early.

Land transfer tax

Ontario charges land transfer tax on every purchase, and Toronto charges a second municipal tax. First-time buyers can get up to $4,000 back on the provincial tax and up to $4,475 on Toronto's.

Builder adjustments

Your contract will list charges the builder passes on at closing. Common ones include:

• Tarion warranty enrolment fee
• Utility meter and connection charges for water, hydro and gas
• Development charge increases since you signed, if your contract allows them
• Education development charges
• Driveway paving, grading or landscaping deposits
• HST on these adjustments

Some contracts cap these charges, and some don't. Ask for a capped list before signing.

HST rebate clawback

If your price assumes HST rebates you end up not qualifying for, the builder adds that amount back at closing. That can be a large surprise. See the HST clause guide.

Other closing costs

• Legal fees and disbursements
• Title insurance
• Mortgage default insurance premium and its provincial sales tax, if your down payment is under 20%
• Property tax and common expense adjustments for condos
• Moving, window coverings and appliances not included in the price

Plan your mortgage early

Pre-construction buyers often close years after signing, and rates and lending rules can change. Get your financing reviewed six to twelve months before your expected closing date, not just from the builder's preferred lender.

More buyer guides

• Ontario HST rebate on new homes: up to $130,000 (2026 guide)
• First-time buyer GST/HST rebate on new homes in Ontario
• HST included in your builder contract: who gets the rebate?
• Tarion deposit protection: how much of your deposit is covered?
• Delayed closing in Ontario: what your builder owes you