Buying
New-home closing costs in Ontario: HST, development charges and Tarion
3 min readPublished
Quick answer
On a new Ontario home, closing costs include HST (often in the price), land transfer tax and legal fees. Development charges are set by the municipality, and in Vaughan that is the City; we do not summarise them here. Ask the builder what the price includes. CMHC puts closing costs at roughly 1.5% to 4% of the price.
Key facts: closing costs on a new home in Ontario
| Closing costs rule of thumb, CMHC | 1.5% to 4% of the price |
|---|---|
| Standard federal GST rebate | 36% of the GST, up to $6,300 |
| Standard Ontario HST rebate | 75% of the provincial part, up to $24,000 |
| Ontario enhanced rebate | Up to $80,000, agreements from 2026-04-01 to 2027-03-31 |
| Vaughan development charges | Set by the City of Vaughan; not summarised here |
| Weston Woods price list | Includes HST and education levies ($849,990 to $1,564,990) |
What closing costs do I pay on a new home in Ontario?
CMHC's rule of thumb is 1.5% to 4% of the purchase price for closing costs. On a new home the items include land transfer tax, legal fees, and adjustments the builder charges at closing. Ask your lawyer to list every adjustment before you sign.
Closing costs are separate from your deposit, which counts toward the price.
How does HST work on a new home, and what can I get back?
Builders often quote a price that includes HST. Paradise's Weston Woods list says so. Ask every builder whether the price is before or after HST.
Rebates reduce the HST. The standard federal GST rebate is 36% of the GST, up to $6,300, and the standard Ontario rebate is 75% of the provincial part, up to $24,000. For agreements from 2026-04-01 to 2027-03-31, Ontario's enhanced rebate can return up to $80,000, in full on homes up to $1,000,000. A first-time buyer's federal GST/HST rebate can reach $50,000, and Ontario's first-time rebate $80,000. Eligibility has conditions, so check the CRA pages.
What is land transfer tax on a new home?
Ontario's land transfer tax is charged in brackets: $0 to $55,000: 0.5%; $55,000 to $250,000: 1%; $250,000 to $400,000: 1.5%; $400,000 to $2,000,000: 2%; over $2,000,000: 2.5%. Toronto adds its own municipal tax, which does not apply to a home in Vaughan. Ontario's guidance covers how the value of consideration is worked out for new homes, so ask your lawyer what figure applies to yours.
Who pays development charges in Vaughan?
Development charges are set by the municipality under the Development Charges Act, 1997. In Vaughan the City sets them, and they are not summarised here. Ask each builder whether development charges are included in the price or capped.
Paradise's Weston Woods list includes HST and education levies in its prices. Arista's Vellore Trails bonus handout lists capped development charges but does not give the cap. Opus, Deco and Fieldgate have not published prices.
What does Tarion cost or cover at closing?
Tarion protects a freehold deposit up to $60,000 on a home at or below $600,000, and above that 10% of the price to $100,000. The builder must register a freehold purchase signed on or after 2026-04-01 within 45 days. We have no verified figure for Tarion's enrolment fee, so ask the builder who pays it and how much.
This guide is general information, not legal or tax advice. Rules change and every agreement is different, so have a real estate lawyer review your agreement and speak to an accountant about tax before you sign.
Key takeaways: closing costs on a new home in Ontario
- CMHC's rule of thumb for closing costs is 1.5% to 4% of the price.
- Ask whether the builder's price includes HST, education levies and development charges.
- Ontario's enhanced new housing rebate can return up to $80,000 on agreements from 2026-04-01 to 2027-03-31.
- Vaughan development charges are set by the City and are not summarised here.
- Have a lawyer list every closing adjustment before you sign.
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Closing costs on a new home in Ontario: frequently asked questions
Is HST included in new home prices in Vaughan?
It depends on the builder. Paradise's Weston Woods price list says prices include HST and education levies. Arista, Deco, Opus and Fieldgate have not published prices, so ask each builder.
Do I pay land transfer tax on a new home?
Yes. Ontario's land transfer tax applies to a new home. Toronto's municipal tax does not apply in Vaughan. Ask your lawyer how the value is worked out for a new home.
How much are development charges in Vaughan?
The City of Vaughan sets them and we do not summarise them here. Ask the builder whether they are included or capped in your price.
How much should I budget for closing costs?
CMHC's rule of thumb is 1.5% to 4% of the purchase price. Your lawyer can give a firm figure from the builder's statement of adjustments.
Sources
- Are you financially ready to buy a home? — CMHC (accessed November 11, 2026)
- RC4028 GST/HST New Housing Rebate — Canada Revenue Agency (accessed November 11, 2026)
- Ontario enhanced new housing rebate (Notice 346) — Canada Revenue Agency (accessed November 11, 2026)
- Land transfer tax: determining the value of consideration for new homes — Government of Ontario (accessed November 11, 2026)
- Development Charges Act, 1997, S.O. 1997, c. 27 — Ontario e-Laws (accessed November 11, 2026)
- Calculating land transfer tax — Government of Ontario (accessed November 11, 2026)
- How does deposit protection work on new homes? — Tarion (accessed November 11, 2026)
- Just bought a new home? Register it with Tarion (accessed November 11, 2026)
Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.
Cite this guide
Summitly Editorial. (2026, November 11). New-home closing costs in Ontario: HST, development charges and Tarion. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/new-home-closing-costs-ontario-hst-development-charges-tarion
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