How much are closing costs on a new construction home in Ottawa?

On a $700,000 new-construction freehold, expect $25,000–$45,000 in cash on closing day beyond your down payment. Pre-construction condos can run higher once interim occupancy fees are added.

Is HST included in new construction prices in Ottawa?

Usually, yes — Ontario new-build pricing is typically advertised HST-included, with the rebate assigned to the builder. On homes over $450,000, only partial rebate applies, and investors face different rules, so confirm it in writing.

What are development charges in Ottawa?

Fees municipalities and the province charge at the building-permit stage, passed on to you at closing — typically $10,000–$20,000 on a single-family home. Some builders cap or absorb them; many don't.

What are occupancy fees on a new condo?

The monthly fee you pay during interim occupancy, before your building is legally registered. It covers estimated interest, taxes, and common-element costs and doesn't count toward your purchase price — typically $1,500–$3,500 a month for several months.

Can closing costs be added to the mortgage?

No. Closing costs are a cash requirement — lenders assume you're paying them from savings, not financing them. Have that cash ready separately from your down payment.

A new-construction home in Ottawa at dusk

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Ottawa New Construction

What Closing Costs Really Look Like on an Ottawa New Build

By Bo Yu, Broker, Right at Home Realty, Brokerage

Closing costs on a new build aren't just a bigger version of resale closing costs — they're a different list. On top of land transfer tax and legal fees, new-build buyers deal with development charges, education levies, a Tarion enrolment fee, utility hook-ups, and, on condos, occupancy fees that don't count toward the purchase price.

Most buyers underestimate what they'll need in cash on closing day by $10,000 to $30,000. This walks through every line item, including the ones tucked into Schedule B of the purchase agreement that builders don't tend to flag.

Prices, rates, and program rules change often. Treat the figures here as general guidance, not advice for your specific situation. Ask Bo for current OREB comparables, and confirm program eligibility with your lender or lawyer.

Land transfer tax (LTT)

Ontario's land transfer tax applies to new construction the same as it does to resale. On a $700,000 new build, LTT runs roughly $10,475 before any first-time buyer rebate (up to $4,000 for eligible buyers). Ottawa doesn't add a municipal LTT on top — that extra layer is a Toronto-only thing.

New-construction Ottawa townhomes with fresh landscaping — New-construction communities by Ottawa's major builders.

HST and the new housing rebate

Ontario new-build pricing is typically advertised inclusive of HST, with the new housing rebate assigned to the builder. On homes priced over $450,000 only partial rebate applies, and the unrebated portion is built into the advertised price.

If you are not occupying the home as your principal residence (investors, assignment buyers), the rebate treatment differs and may require post-closing application for the rental rebate (NRRP). Confirm the HST treatment in writing before signing — this is a six-figure issue for investors.

Development charges and education levies

Municipal development charges and provincial education levies get added at the building-permit stage and passed on to the buyer at closing. Ottawa caps some of these by community, but expect a $10,000–$20,000 pass-through on a typical single-family home.

Some builders absorb or cap these charges in the offer; plenty don't. Schedule B of the purchase agreement is the document that actually governs this — worth reading closely or having your lawyer walk you through it.

Young family at the front door of their new Ottawa home — First-time buyers stepping into their Ottawa home.

The Tarion enrolment fee

This is the mandatory fee to enrol your home in Tarion's new-home warranty program. It's based on purchase price — typically $400–$1,200 on a single-family home — and it's not negotiable.

Hooking up utilities

Hydro, gas, and water meter installation and connection fees usually run $1,500–$3,500 on a single-family home, depending on the community and how it's serviced.

Row of modern detached suburban homes in west Ottawa — Family-friendly suburbs like Kanata, Barrhaven and Stittsville.

Occupancy fees, if you're buying a condo

On a pre-construction condo, you move in under 'interim occupancy' once your unit is ready but before the building is legally registered. Until then, you pay a monthly occupancy fee, sometimes called phantom rent, covering estimated interest, taxes, and common-element costs.

Expect $1,500–$3,500 a month for several months. None of it goes toward the purchase price — treat it as rent when you're budgeting.

Legal fees

Lawyer fees on new construction usually run $1,800–$3,000, a bit more than resale because there's extra paperwork to review: the purchase agreement, schedules, builder disclosure, Tarion forms, and condo documents where relevant.

Title insurance and other adjustments

Add title insurance ($400–$600), property tax adjustments to the closing date, utility adjustments, and in some communities a grading or landscaping deposit that may or may not come back to you.

The extras builders rarely include

Fencing, finished landscaping, basement finishing, window coverings, central vacuum, a garage door opener, and any cosmetic finishing not spelled out in the contract. Don't assume — confirm everything in writing.

Fencing — almost never included; budget $3,000–$8,000
Landscaping (beyond builder-supplied sod and one tree) — $5,000–$25,000+
Window coverings — $3,000–$8,000+ on a typical home
Garage door opener, central vac, water softener — confirm or budget separately
Appliances — confirm what's included; assume nothing

What to budget in total

On a $700,000 Ottawa new-construction freehold, plan for $25,000–$45,000 in closing-day cash beyond your down payment, depending on community, builder, and contract terms. Pre-construction condos can run higher once occupancy fees are added in.

Questions People Ask

A few common questions

How much are closing costs on a new construction home in Ottawa?: On a $700,000 new-construction freehold, expect $25,000–$45,000 in cash on closing day beyond your down payment. Pre-construction condos can run higher once interim occupancy fees are added.
Is HST included in new construction prices in Ottawa?: Usually, yes — Ontario new-build pricing is typically advertised HST-included, with the rebate assigned to the builder. On homes over $450,000, only partial rebate applies, and investors face different rules, so confirm it in writing.
What are development charges in Ottawa?: Fees municipalities and the province charge at the building-permit stage, passed on to you at closing — typically $10,000–$20,000 on a single-family home. Some builders cap or absorb them; many don't.
What are occupancy fees on a new condo?: The monthly fee you pay during interim occupancy, before your building is legally registered. It covers estimated interest, taxes, and common-element costs and doesn't count toward your purchase price — typically $1,500–$3,500 a month for several months.
Can closing costs be added to the mortgage?: No. Closing costs are a cash requirement — lenders assume you're paying them from savings, not financing them. Have that cash ready separately from your down payment.

Keep Reading

Ottawa New Construction Homes (Hub)

Return to the new-construction pillar.

All Ottawa Home Builders

Builder-by-builder cost notes.

Builder Upgrades Guide

The other major spend category.

General Ottawa Closing Costs

Resale closing-cost comparison.

Straight From the Source

Check the numbers yourself

These are the official sources I use for current Ottawa real estate data, government programs and buyer protection.

Want a real closing-cost number for your build?

Send me the community and floor plan and I'll put together the full closing-day cash number before you sign anything.

Get a closing-cost estimate

Any prices, rates, market figures or value estimates on this page are for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.

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