New build costs, HST rebate and warranty
The price on the sign is not the whole price. Here is what else to plan for on a new home in Durham Region, and what the Ontario HST rebate and the Tarion warranty cover.
See the costs
What else to plan for
Every builder's agreement is different. These are the six items buyers most often miss. Tick each one when you have asked the builder, and see how many are left.
Deposits
Usually paid in stages as the agreement is signed and as the build moves along. Ask when each is due, and how each one is protected. See the Tarion section below.
HST
Ask whether the price includes HST, and how any rebate is applied. See the rebate section above.
Closing adjustments
Items such as the Tarion enrolment fee, utility hook-ups and property tax can be added at closing. Ask for the list in writing.
Upgrades
Flooring, kitchens and finishes add up fast. Ask what is included in the base price, what each upgrade costs, and the deadline for choosing.
Land transfer tax and legal
You still pay land transfer tax and legal fees on a new build. Use our land transfer tax calculator and ask your lawyer for a total.
Closing date changes
Builders can move the closing date. Read what the agreement says about delays, and what happens to your mortgage rate hold.
Ontario's HST rebate on new homes
Ontario has expanded its HST rebate for new homes, and there is a separate rebate for first-time buyers. The rules have changed several times since 2025, so confirm the current rules with your lawyer before you sign.
Most buyers
Up to $130,000- For an agreement signed between April 1, 2026 and March 31, 2027.
- The full rebate applies up to a $1 million price, and the amount holds at $130,000 up to $1.5 million, then falls toward $24,000 at $1.85 million.
- The home must be your primary residence. Construction must start by the end of 2028 and be substantially complete by the end of 2031.
First-time buyers
- A separate first-time home buyer rebate applies to agreements signed on or after March 20, 2025 and before January 1, 2031.
- It covers the HST on homes up to $1 million, and is reduced above that.
- You must be 18 or older, a Canadian citizen or permanent resident, and not have owned and lived in a home in the current year or the four years before.
Ask the builder how the rebate is handled. Some builders pass it to you at closing, and in other cases you apply to the Canada Revenue Agency after the home is substantially complete. Keep your agreement and receipts. This is general information, not tax advice.
Development charges
Builders pay development charges to pay for roads, water, sewers and other services, and they build the cost into the price. Some agreements let the builder pass on increases to you, so read that clause.
| Home type | Region of Durham charge, from July 1, 2026 |
|---|---|
| Single or semi-detached | $76,227 (of which $32,465 applies everywhere, and $43,762 is water and sewer where the service is available) |
| Townhome or other medium density | $60,684 |
| Apartment, 2 bedrooms or more | $44,320 |
| Apartment, 1 bedroom or smaller | $27,224 |
The local town or city and the school boards add their own charges. These are Regional charges as published by the Region of Durham, and they are indexed each year.
The Tarion warranty
New homes in Ontario come with a statutory warranty from Tarion, the not-for-profit that administers it. The clock starts on the day you take possession, so the dates below are counted from that day.
30-day form
Send Tarion everything left over from your pre-delivery inspection, plus anything new. You get one form, so list it all.
One-year warranty
Covers building code problems, material defects and a home that is not fit to live in. Send your year-end form in the last 30 days.
Two-year warranty
Covers water getting in, windows, doors, caulking, electrical, plumbing, heating, cladding and some code violations.
Seven-year warranty
Covers major structural defects. You can send a form up to seven years after possession.
Tarion, fully explained
What is Tarion, and what does the warranty do?
Tarion is the organization that runs Ontario's new home warranty program under the Ontario New Home Warranties Plan Act. Your builder is the one who repairs covered problems. Tarion steps in to help if the builder will not, and to protect certain deposits if the builder fails.
The warranty is part of buying a new home, so you do not buy it separately. Ask your lawyer to explain how it applies to your agreement.
Step one: register within 45 days (new freehold homes)
If you buy a new freehold home, you should notify Tarion within 45 days of signing the agreement of purchase and sale. You can do it yourself online or ask your lawyer. Condominium purchases are treated differently.
Why it matters: buyers who register on time keep full deposit protection. Late registrants still have warranty coverage, but their deposit protection can be much smaller, and claims can be paid late. Do not assume the builder has registered you.
The builder must also give you the current Tarion warranty information sheet with the agreement.
How are my deposits protected?
For new freehold homes, deposit protection is up to 10% of the purchase price, to a maximum of $100,000. It applies if the builder goes bankrupt or breaks the agreement. Condo deposits follow different rules, so ask your lawyer.
Ask your lawyer to confirm your own limit and which of your deposits are covered.
The pre-delivery inspection (PDI)
Before closing, you and the builder walk through the home together. It is usually booked at least two weeks before closing. Take your time.
- Write down every defect, missing item and thing that does not work.
- Use the Tarion form, and take photos of each item.
- The builder fixes what it can before closing, and may finish other items afterwards.
- Keep your copy. It is the record of the home's condition on day one.
What each year covers
- Delivery and year one: homes built to the Ontario Building Code, free of material defects and fit to live in.
- Year two: water coming in through the basement or foundation walls, defects in windows, doors and caulking, electrical, plumbing and heating, exterior cladding, and code violations that affect health and safety.
- Years two to seven: major structural defects.
Normal wear and tear, damage you cause and some other items are not covered. Tarion's construction guidelines explain what counts as a defect.
How to make a claim, step by step
The easiest way is Tarion's online portal, MyHome, which also emails you your deadlines. Describe each problem clearly and attach photos or video.
Common mistakes to avoid
- Missing the 45-day registration for a new freehold home.
- Skipping or rushing the pre-delivery inspection.
- Forgetting that the 30-day form and the year-end form are one-time forms. List everything on them.
- Sending forms late. Missing a deadline can mean losing coverage for those items.
- Not giving the builder access to repair covered items.
- Not keeping photos, emails and copies of every form.
Before you sign with a builder
- Have your own agent registered on your first visit, if the builder allows it.
- Ask for the full list of closing costs in writing.
- Have a real estate lawyer read the agreement before you sign.
- Ask how, and when, any HST rebate is applied.
- Ask what happens if the closing date moves.
- Ask what is in the base price, and what is an upgrade.
- Ask about the lot, the grading and what is built next door.
- Check the Tarion form for the pre-delivery inspection.
Sources: Osler, Ontario's new HST rebate; TRREB, 2026 HST New Home Buyer Rebate (April 2026); Region of Durham, development charges July 1, 2026; Tarion warranty and pre-delivery inspection. Rules and amounts change, so confirm with the builder, your lawyer and the Canada Revenue Agency. We are not tax or legal advisors.