If you’re as obsessed with everything to do with modern homes and modern home furniture as our team are, there’s a good chance the thought of building your own custom home from the ground up has crossed your mind before.
However, we know from personal experience that building a house in Ontario is no easy task — just ask our founder Jon Van Geest, whose house was recently recognized as 2020’s Best Custom Home in the Hamilton Burlington Area by the West End Hamilton Builders Association.
While Jon is very happy with his custom home, and of course proud of his recent award, there were definitely a few hoops he needed to jump through to bring his custom home vision to reality. From building permit fees to land transfer taxes, there are a lot of hidden costs that go into building a house in Ontario, which is why we put together this guide.
If you’re thinking about bringing your custom home vision to reality, learn more about what the real cost of building a house in Ontario is by reading our guide below.
Buying the Land
It sounds extremely obvious, but in order to build a house in Ontario, you first have to own the land you want to build it on. While you might already own property somewhere or you’re planning on tearing down your current home to make way for your new custom home, the bottom line is you need to have full exclusive rights to the land you plan to start your home building project on.
If you’re looking to purchase a new plot of land to begin your custom home building project on, the cost of land will evidently change depending on where you’re searching. In downtown Toronto, you’re going to get much less “bang for your buck” than if you were looking at properties in nearby surrounding areas, like Waterdown, Hamilton, or Burlington.
Also, consider the costs of hiring a land surveyor and property development consultant to help you determine if building a house on your desired property is feasible or not.
To see what land is on the market right now use our Property Search Tool.
Getting a Building Permit
Once you have your plot of land, it’s essential you also obtain a building permit from your local municipality before you begin construction. Getting government approval in the way of a building permit will come will of course come with a few extra costs, but they will also vary depending on the geographical location of your project.
Within Ontario, you can expect to pay anywhere between $10,000 and $30,000 for your building permit, however, building permits in more rural and suburban areas will be much less expensive than in a larger metropolitan city.
For more building permit information read: When is a Building Permit Required in Ontario
Hiring a Builder
After your land and permit costs are in order, it’s now time to seek out your home builder. Assuming you’ve already had a qualified architect approve your custom home building plans, you’ll now (hopefully) have a variety of different builders to choose from.
It’s important you do your research and get construction quotes from each builder you interview ahead of your Ontario home building project. These should include accurate estimates of construction costs, time and labour costs, and the cost of any new build team members or specialist service providers they may need to use as well.
To learn more about hiring specialist service providers read: How to Source a Qualified New Build Team
Calculating Square Footage
Of course, the price per square foot to build a house in Ontario will also vary greatly depending on where you want to build your home too. On average, custom home builders will generally charge anywhere between $150 to over $400 per square foot to build a house in Ontario, which changes depending on location, size, and floor plan.
One thing to keep in mind is the shape of your custom home. Houses with more complex floor plans that feature lots of corners, turns, and unique shapes will require changes in the roof and foundations of your house and result in a higher price. Simpler shapes are more straightforward to build, requiring less planning, effort, and time to execute, and therefore less money.
Additional resources on building and new construction homes:
- 4 Essential Steps to Building a House in Ontario
- Understanding Construction Mortgage Loans in Ontario
Choosing Your Materials
Perhaps the most obvious cost involved in the home building process is that of the appliances and materials. While you might have envisioned your custom home having Carrara marble countertops, a Wolf range oven, and exotic hardwood floors, these niceties add up quickly.
It’s important to remember that there’s a wide variety of materials that suit most budgets. Don’t be disheartened because your ideal luxury material is now out of your price range after taking into account all of your initial house building costs. Instead, look for cheaper alternatives that give off a similar effect — chances are there’s something that looks a lot like that Carrara marble that sells at half the price, you just need to do some homework to find it.
From acquiring a construction mortgage, finding your perfect plot of land, and searching for a qualified local builder, our experienced real estate team knows the ins-and-outs of building a house in Ontario. If you’re set on taking on the challenge, let our guidance and expertise help you through the process by contacting us here.
