Pre-Construction Closing Costs in Ontario

The checklist

Toronto buyers pay a second, municipal land transfer tax on top of the provincial one, with its own first-time buyer rebate of up to $4,475. Outside Toronto there is no municipal land transfer tax.

Land transfer tax, worked out

Ontario's land transfer tax is graduated — each rate applies only to the slice of the price inside its band: 0.5% on the first $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2,000,000, and 2.5% on the portion above $2,000,000 (for land with one or two single-family residences). Eligible first-time buyers can claim a refund of up to $4,000 — enough to cover the tax on a home up to roughly $368,000. Source: Ontario Ministry of Finance — first-time buyer refunds

Worked example — a back-to-back town at North Gate Trails in Ajax, priced at $559,990 (Lakeview Homes price list, November 3, 2026):

See North Gate Trails on Findle

HST: read the price basis before you do any maths

Builder prices are quoted on one of three bases, and the basis changes what you owe. A price net of HST rebate already has the rebate credited — never add a further rebate to it. A price inclusive of HST, net of rebate is the same idea stated differently. A price exclusive of HST has the tax still to be added. Real examples from projects we verified in November 2026: North Gate Trails is net of HST; UpTown Woodbridge is inclusive of HST, net of the enhanced Ontario rebate; Founders Walk in Stouffville is exclusive of HST — its $759,990 starting price has HST on top.

There are three distinct HST relief streams in Ontario right now — do not mix them up or add them together:

• All-buyer enhanced relief, up to $130,000. The Ontario Enhanced New Housing Rebate (up to $80,000, the 8% provincial part) plus the Ontario New Home Affordability Payment (up to $50,000, the 5% federal part). Agreements signed April 1, 2026–March 31, 2027; full 13% rebated on homes up to $1 million, $130,000 cap to $1.5 million, then tapering to $24,000 at $1.85 million. In force retroactive to April 1, 2026 (Ontario Bill 114, Royal Assent May 12, 2026; federal Bill C-26, Royal Assent June 18, 2026).
• Federal first-time buyer GST rebate, up to $50,000. 100% of the federal GST on a new home up to $1 million, phasing out to zero at $1.5 million, for agreements on or after March 20, 2025 and before 2031 (Bill C-4, Royal Assent March 12, 2026). Source: CRA — first-time home buyers' GST/HST rebate (Memorandum 19-3-10)
• Ontario first-time buyer provincial rebate, up to $80,000. 100% of the provincial part of the HST on a new home up to $1 million, under the same federal first-time buyer framework.

The $130,000 all-buyer figure is the combined total of the provincial $80,000 and the federal $50,000 — it is not $130,000 on top of a separate $50,000 federal rebate. Eligibility turns on your agreement date, the home's price, construction start and completion dates, and whether the home is your primary residence or a qualifying rental property. Your lawyer and tax adviser confirm eligibility — never count on a rebate before they have.

What builders cap — and what they don't

Some builders cap the charges you face at closing, and the cap is a real term of the agreement — but only where it is written into your price list or APS. North Gate Trails caps closing costs at $7,000 + HST (back-to-back towns), $8,000 + HST (other towns) and $8,500 + HST (detached), per the builder's November 3, 2026 price lists and FAQ.

OG Urban Towns in Mississauga caps development charges at $0 and closing costs at $5,000, with free assignments and a 10% deposit within 180 days — confirmed in writing in Brightstone's October 30, 2026 broker email. Those are current terms for that project, as of that email.

And a caution about expired terms: Five Oaks in Oakville offered free assignments, $0 development-charge increases and closing costs capped at $5,000 as grand-opening bonuses — those expired on October 25, 2026. Do not treat them as current Five Oaks terms; the project's current assignment and development-charge terms were unpublished when we last checked.

Fees that look like incentives are not always incentives. Derry Lane in Mississauga charges $150 per month in POTL (common-element) fees on its towns — that is a recurring cost, not a builder concession, and it belongs in your monthly budget, not in a list of savings.

Limitations — what this guide does not cover

• Legal fees, title insurance and disbursements vary by lawyer, lender and file. This guide gives no dollar figure for them because there is no standard one — get a written estimate from your lawyer.
• Development-charge and levy treatment was unpublished for most of the projects we verified, including Derry Lane, St Davids Collection, Founders Walk and North Hill. Where a project does not publish a cap, assume the charges apply in full until your lawyer confirms otherwise.
• Assignment terms — whether you can transfer your agreement before closing, and what it costs — were unpublished for most projects we verified. Abacot Hill states free assignment; OG Urban Towns states free assignments. Do not assume the same elsewhere.
• Mortgage qualification at closing is tested at the higher of your contract rate plus 2% or 5.25%, and insured mortgages generally require gross debt service at or below 39% and total debt service at or below 44%, with at least one borrower at a 600 credit score. Source: CMHC — calculating GDS/TDS
• Rates move: the Bank of Canada raised its policy rate to 2.50% on October 28, 2026 (prime 4.70%), with the next decision scheduled for December 9, 2026. Source: Bank of Canada, Oct 28, 2026

Projects used in this guide

• North Gate Trails — Lakeview Homes, Ajax. Capped closing costs $7,000–$8,500 + HST; tentative closings from October 2027.
• OG Urban Towns — Brightstone, Mississauga. Development charges capped $0; closing costs capped $5,000; occupancy April 2028.
• Derry Lane — Ballymore Homes, Mississauga. $150/month POTL fee on towns.
• Five Oaks — Caivan, Oakville. Grand-opening bonuses expired October 25, 2026; current assignment and charge terms unpublished.
• Founders Walk — OPUS & Fairgate Homes, Stouffville. Prices exclusive of HST.