There is no reliable universal percentage for closing cost estimates on an Ontario pre-construction home or condo. The amount depends on the purchase price, property type, agreement of purchase and sale, builder adjustments, upgrades, HST treatment, rebate eligibility and the timing of occupancy or final closing.
A useful estimate is built from the exact project documents, not a generic online rule. Separate your deposits and purchase price from one-time closing costs, then assess the monthly cost of owning the property after closing.
Quick summary
- Keep the purchase price, deposit instalments, balance due at closing and additional closing costs in separate lines.
- Check Ontario land transfer tax using the full value of consideration, which may include more than the advertised price.
- Treat HST rebates, development charges, utility fees, upgrades and builder adjustments as items requiring project-specific verification.
- Compare the builder’s estimate with the agreement, disclosure documents and your lawyer’s review before committing funds.
- Budget monthly property taxes, condo fees, utilities, insurance and financing separately from one-time closing expenses.
What a closing-cost estimate should include
Start with a cash-flow worksheet. The first section should show the purchase price, deposit schedule and amount expected to remain due at final closing. Deposits are part of the purchase transaction, but they are not the same as additional closing costs, and they may be payable months or years before the property is complete.
The second section should list one-time costs that may be payable at occupancy or final closing. These can include land transfer tax, legal and registration fees, builder adjustments, development-related charges, utility or meter charges, upgrades, insurance and moving costs. The exact agreement determines which items apply and who is responsible for them. The Realty Bulls’ guidance on the complete cost of ownership is a useful starting point.
The third section should cover ongoing ownership costs. Property taxes, condo fees, utilities, insurance, mortgage payments and property management are not usually one-time closing costs, but they determine whether the purchase remains affordable after possession.
Think of the estimate as a planning tool rather than a guaranteed final figure. The amount can change when the builder issues updated information or the lawyer prepares the statement of adjustments.
Potential Ontario pre-construction closing costs
Not every project includes every charge. Treat promotional estimates as planning information, then verify each item against the agreement and schedules.
| Cost category | When it may arise | What to verify |
|---|---|---|
| Ontario land transfer tax | Usually when ownership transfers | Taxable value of consideration, exemptions and first-time buyer eligibility |
| Legal and registration fees | Agreement review and closing | Lawyer’s quote, title registration, disbursements and transaction charges |
| Builder adjustments | Occupancy or final closing | Agreement schedules, disclosure documents, adjustment clauses and caps |
| Development, lot or school-related charges | Often at closing if assigned to the purchaser | Agreement wording, builder estimate and project documents |
| Utility or meter charges | Occupancy or closing | Service agreements, connection charges and unit or lot terms |
| Upgrades and extras | When selections are made or at closing | Signed upgrade documents, tax treatment and payment schedule |
| HST and potential rebates | As required under the transaction | Agreement date, intended use, purchaser eligibility and CRA requirements |
| Condo occupancy costs | Interim occupancy before final closing | Occupancy agreement, monthly amount and relationship to final closing |
| Insurance and moving costs | Before possession or shortly afterward | Insurance requirements, move-in rules and service costs |
Ontario’s official guidance confirms that some amounts connected with a new-home transaction can form part of the value used to calculate land transfer tax. Examples may include development charges, school levies, lot levies, certain warranty-plan fees and late upgrade fees. Do not assume an item is excluded simply because it is not labelled “purchase price.”
Land transfer tax: estimate the taxable consideration carefully
Ontario land transfer tax is calculated using the value of consideration. Depending on the transaction, that calculation can include the purchase price, assumed liabilities, benefits conferred, soft costs and upgrades. Review the provincial explanation of how land transfer tax is calculated instead of applying a flat percentage to the advertised price.
For new homes, the taxable value may also be affected by development charges or other levies. Ontario’s explanation of the value of consideration for new homes provides examples, but the treatment of your purchase should be confirmed for the specific agreement.
Eligible first-time homebuyers may qualify for a refund of all or part of Ontario land transfer tax, subject to current rules. Include the tax in your preliminary cash requirement until eligibility and the filing process have been confirmed.
HST and new-housing rebates: verify eligibility
HST is another area where a headline estimate can be misleading. Eligible purchasers of qualifying new housing in Ontario may be entitled to GST/HST new-housing rebates, but eligibility depends on the property, purchaser, intended use and other conditions.
Review the Canada Revenue Agency’s guidance on GST/HST new-housing rebates in Ontario and confirm the treatment with a qualified legal or tax professional. The agreement date can also matter because temporary measures may apply only to qualifying agreements made within specified periods.
Do not treat a rebate as guaranteed cash available for another purpose. If the purchaser, occupancy plan or property does not meet the applicable conditions, the expected amount may not be available. CRA guidance also explains when GST/HST on new residential real property generally becomes payable.
2026 update: expanded HST relief on new homes in Ontario
Several new rebates may significantly reduce the HST on a new home. As of mid-2026, the main measures were:
- Federal First-Time Home Buyers’ GST rebate: up to $50,000 (the full 5% federal portion) for eligible first-time buyers of a new home used as a primary residence. Full relief applies up to $1 million, phasing out between $1 million and $1.5 million. It generally applies to agreements signed on or after March 20, 2025.
- Ontario first-time buyer rebate: up to $80,000 (the full 8% provincial portion), mirroring the federal program’s eligibility and price thresholds.
- Enhanced relief for all buyers of new homes: combined relief of up to $130,000 on qualifying new homes, for agreements signed between April 1, 2026 and March 31, 2027. Full relief applies up to $1 million, the maximum continues up to $1.5 million, then it declines, with a smaller rebate on higher-priced homes. Construction timing conditions also apply.
How these rebates are paid can vary. Some builders credit them on the statement of adjustments at closing, while in other cases buyers apply to the CRA directly after closing. While final rules and forms were being rolled out in 2026, some buyers needed to finance the rebate amount at closing and claim it afterwards. Before you sign, ask the builder in writing whether the advertised price assumes a rebate, who claims it, and what happens if you don’t qualify. Confirm the current rules with the CRA, your lawyer or a tax professional, because these programs are new and their details may change.
How estimates differ for condos and freehold homes
Pre-construction condos often require closer review of interim occupancy, common expenses, utility or meter arrangements, parking and locker terms, and condominium-related adjustments. Interim occupancy can occur before final title transfer, so ask what you will pay during that period and which costs are separate from the final closing amount.
Freehold homes may involve different project-specific charges, including lot-related amounts, development or municipal adjustments, utility connections, upgrades and landscaping or fencing obligations. A freehold designation does not make closing costs predictable without reviewing the agreement and schedules.
For either property type, compare the estimated closing costs with the exact unit or lot details, deposit schedule, financing assumptions and contractual adjustments.
How to build a project-specific closing-cost estimate
- Collect current documents. Obtain the price list, floor plan, feature sheet, agreement of purchase and sale, disclosure materials, deposit schedule, upgrade documents and builder worksheet.
- Record key dates. Note deposit deadlines, anticipated occupancy, final closing, financing milestones and selection deadlines.
- List contractual charges. Extract every adjustment, levy, utility charge, meter fee, upgrade, parking or locker cost assigned to the purchaser.
- Estimate statutory costs. Calculate land transfer tax using the appropriate value of consideration and identify whether first-time buyer rules may apply.
- Verify HST treatment. Record whether HST is included, how any rebate is expected to work and what conditions must be satisfied.
- Separate confirmed and estimated figures. Label each line as confirmed by the agreement, estimated by the builder or awaiting professional review.
- Stress-test the cash requirement. Allow for a later closing date, changed financing conditions, unexpected adjustments and a separate emergency reserve.
Keep the worksheet tied to the exact release, unit or lot. A project may have different costs for different homes, parking arrangements, upgrade packages or closing timelines.
Validate the estimate before submitting funds
The builder’s worksheet is useful, but it is not a substitute for the agreement of purchase and sale. Reconcile each line with the agreement, schedules, amendments, disclosure documents and written representations about capped charges or included items.
Your real estate lawyer should explain adjustment clauses, occupancy terms, deposit provisions, closing obligations and other legal risks. A mortgage professional should test financing assumptions against the anticipated closing date and total funds required. A tax professional can help assess HST and rebate questions, particularly when the property is intended for rental or investment use.
The brokerage can help gather project information, compare releases and identify questions for the builder, but legal, mortgage and tax professionals have distinct responsibilities. Ask for written clarification whenever a sales-centre explanation is important to your decision.
Keep one-time closing costs separate from monthly carrying costs
A buyer can have enough money for closing and still be overextended month to month. Prepare a separate monthly budget for property taxes, condo fees or maintenance costs, utilities, insurance, financing payments, repairs and property management where relevant.
Use a realistic monthly carrying cost rather than relying on the mortgage payment alone. For a condo, request the current maintenance-fee estimate and understand what it includes. For a freehold home, consider utilities, insurance, maintenance and community or municipal charges.
If you plan to rent the property, do not use projected rent as a guarantee. Include vacancy, management, repairs and financing changes in your affordability review.
Closing-cost estimate checklist for Ontario buyers
- Have you confirmed the exact purchase price, unit or lot, parking and locker arrangements?
- Is the deposit schedule clear, including every instalment and deadline?
- Which adjustments, levies, development charges and utility or meter fees may be charged to you?
- Are upgrades documented, priced and included in taxable consideration where applicable?
- What HST amount is included or payable, and what rebate conditions must be met?
- Have you checked first-time buyer eligibility for an Ontario land transfer tax refund?
- For a condo, what are the interim occupancy costs, maintenance fees and utility arrangements?
- Has a mortgage professional confirmed the funds required at the expected closing date?
- Have you kept a contingency reserve separate from the deposit and closing funds?
For an additional buyer-focused comparison of costs beyond the down payment, you can review this guide to Brampton closing costs. Use it as general education, then return to your own project documents for controlling figures.
Frequently asked questions
Are closing costs included in the purchase price of a pre-construction home or condo?
Usually, the purchase price and additional closing costs should be treated as separate budget lines. Some amounts may be included, capped or credited under a particular agreement, while others may be added through adjustments. Confirm each item in writing.
Do pre-construction condos and freehold homes have different closing costs?
They can. Condos may involve interim occupancy, common expenses, parking or locker charges and condominium-related adjustments. Freehold homes may involve lot, development, utility or upgrade charges. Neither property type has one standard amount.
Are HST rebates and Ontario land-transfer-tax refunds automatic?
No. Both depend on eligibility and applicable rules. A qualifying new-home purchaser may be entitled to a GST/HST rebate, and an eligible first-time buyer may qualify for an Ontario land transfer tax refund, but neither should be assumed without verification.
Which document gives the most accurate final closing-cost figure?
The final statement of adjustments generally reconciles the amount due at closing. Before it is available, use the agreement, disclosure documents, amendments and professional reviews to build and update your estimate.
Build the estimate from the documents, not a percentage
The most dependable closing cost estimates are project-specific. Start with the exact agreement and deposit schedule, identify every contractual adjustment, calculate land transfer tax carefully, verify HST and rebate conditions, and keep one-time costs separate from monthly ownership expenses.
Before signing or submitting funds, ask the builder for current written information and have the agreement reviewed by the appropriate legal, mortgage and tax professionals. This process will show which figures are confirmed, conditional or in need of a contingency.
For Ontario pre-construction project information, including price lists, floor plans, availability and buyer guidance across the GTA and surrounding cities, speak with The Realty Bulls.
