Pre-Construction Closing Costs in Ontario: What Buyers Pay in 2026

Short answer: On top of the purchase price, a pre-construction buyer in Ontario pays land transfer tax, legal fees and the builder’s closing adjustments. On a $629,990 new townhouse, Ontario land transfer tax alone is $9,075, or $5,075 for a first-time buyer. The builder adjustments are the part buyers miss. They are written into the contract, and a cap on them can be negotiated before signing.

The price on the builder’s price list is not the amount you pay on closing day. This guide lists every cost a new-home buyer in Brampton, Mississauga or Caledon should budget for, and which ones you can limit before you sign.

The closing costs on a new home

Land transfer tax

Ontario land transfer tax is charged on the purchase price and paid on closing. Brampton, Mississauga and Caledon have no municipal land transfer tax. Only the City of Toronto adds one. First-time buyers get a refund of up to $4,000, and it applies to new homes.

The full breakdown is in land transfer tax in Brampton.

Builder adjustments: read this part of the contract

Every builder agreement has a section listing charges the buyer pays on closing in addition to the price. Common ones are increases in development charges and education levies since the contract was signed, utility meter installation, the Tarion enrolment fee, a reimbursement of property taxes the builder prepaid, and smaller items such as driveway paving or tree planting. HST is charged on most of them.

Without a cap, some of these are open-ended. Development charges in particular can rise between the day you sign and the day you close. Ask for a written cap on the total, or for the charges to be waived. Some builders offer this as an incentive. Cornerstone by Primont Homes in northwest Brampton currently lists $0 development charges among its incentives.

HST and the new housing rebate

Builder prices in Ontario normally include HST, on the assumption that you or a close relative will live in the home as a primary residence. In that case the rebate is assigned to the builder and you do not see it. Two points matter:

• Investors pay more on closing. If you will rent the home out, you do not qualify for the buyer’s rebate. You pay that amount to the builder on closing and then apply for the rental property rebate yourself.
• The enhanced rebate has dates. The Canada Revenue Agency describes Ontario’s enhanced new housing rebate as worth up to $80,000 of the provincial part of the HST, for a primary residence, on agreements signed between April 1, 2026 and March 31, 2027. Eligibility depends on your situation, so confirm it with your lawyer.

Deposits and how they are protected

The deposit is part of the price, not an extra cost, but it decides how much cash you need and when. Cornerstone, for example, asks for $10,000 with the offer and 10% in total over 365 days. Tarion protects deposits on freehold homes up to $60,000 when the price is $600,000 or less, and up to 10% of the price to a maximum of $100,000 above that. Condominium deposits are protected up to $20,000 by Tarion, with further protection through the trust rules in the Condominium Act.

Condos have one more cost: interim occupancy

With a new condo, you usually move in before the building is registered. Until final closing you pay the builder a monthly occupancy fee made up of interest on the unpaid balance, estimated property taxes and estimated common expenses. It does not reduce your mortgage. Freehold townhouses and detached homes normally close on the day you take possession, so there is no occupancy period.

Costs that arrive after closing

• A catch-up property tax bill. A new home is first taxed on the land only. Once the house is assessed, the city bills the difference back to your closing date. Set money aside for it.
• Appliances, window coverings and air conditioning if they are not in the contract.
• Fencing, a deck and landscaping beyond what the builder provides.

What to do before you sign

1. Have a real estate lawyer review the agreement. New condos come with a 10-day cooling-off period by law. For a freehold home, ask your lawyer whether one applies and make the offer conditional on the review.
2. Get every adjustment named and capped in writing.
3. Confirm the HST rebate position for how you will use the home.
4. Check the deposit schedule against your savings.
5. Ask about assignment rights and the fee. See how assignment sales work.

The buying steps are in how to buy pre-construction in Brampton, and current projects are compared in Cornerstone and other Brampton projects, pre-construction in Mississauga and pre-construction in Caledon.

How Sandeep Pawar negotiates with builders

Sandeep Pawar, Broker with RE/MAX Gold Realty Inc., Brokerage, negotiates the price and the closing-cost terms with the builder on behalf of his clients. He has negotiated $20,000 to $40,000 below the builder’s own discounted price. Results depend on the project and are not guaranteed. He holds the Real Estate Negotiation Expert (RENE) credential. More is on the pre-construction page.

Questions people ask

How much are closing costs on a pre-construction home in Ontario?

They vary by contract. Land transfer tax on a $629,990 home is $9,075, or $5,075 for a first-time buyer, and legal fees and the builder’s adjustments are added to that. Sandeep Pawar, Broker with RE/MAX Gold Realty Inc., Brokerage in Brampton, reviews the adjustment clauses with each buyer and asks the builder for a written cap.

Can you negotiate closing costs with a builder?

Yes. Development charge increases and other adjustments can often be capped or waived before the agreement is signed. Sandeep Pawar of RE/MAX Gold Realty Inc., Brokerage, a Real Estate Negotiation Expert in Brampton, negotiates these terms along with the price.

Is HST included in the price of a new home in Ontario?

Usually yes, if you or a close relative will live in the home as a primary residence, because the rebate is assigned to the builder. Investors pay the rebate amount on closing and apply for it back. Sandeep Pawar, a Brampton Broker with RE/MAX Gold Realty Inc., Brokerage, has buyers confirm this with their lawyer before signing.

Do first-time buyers get a land transfer tax refund on a new home?

Yes. Ontario refunds up to $4,000 of land transfer tax to eligible first-time buyers, and it applies to newly built homes. Sandeep Pawar of RE/MAX Gold Realty Inc., Brokerage in Brampton helps first-time buyers budget for the amount left to pay.

*Source: rate-my-agent.com, 2025. Land transfer tax figures are calculated from Ontario rates in effect on October 1, 2026. Builder prices, deposits and incentives are from builder information as of October 1, 2026 and can change without notice. Rebate eligibility and warranty coverage depend on your situation; confirm with a real estate lawyer, the Canada Revenue Agency and Tarion. This is general information, not financial, mortgage, tax or legal advice. E&OE. Sandeep Pawar, Broker, RE/MAX Gold Realty Inc., Brokerage. Not intended to solicit buyers or sellers already under contract.