Ottawa New Construction
New Construction Closing Costs in Ottawa
Closing costs on Ottawa new construction are systematically different from resale closing costs — and dramatically more variable. Beyond the standard land transfer tax and legal fees, new-build buyers face development charges, education levies, Tarion enrolment fees, utility hook-up charges, and (on condos) occupancy fees that don't go toward the purchase price.
Most new-build buyers underestimate closing-day cash requirements by $10,000 to $30,000. This guide walks through every line item — including the ones buried in the schedule B of the purchase agreement that builders rarely highlight.
Land Transfer Tax (Ontario)
Ontario LTT applies to new construction the same way it applies to resale. On a $700,000 new build, the LTT is roughly $10,475 before any first-time buyer rebate (up to $4,000 for eligible first-time buyers). Ottawa does not have a municipal LTT — that surcharge is Toronto-only.
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 are imposed at the building-permit stage and passed through to the buyer at closing. Ottawa caps some of these by community, but the typical pass-through is $10,000–$20,000 on a single-family home.
Some builders cap or absorb development charges in their offer; many do not. The Schedule B of the purchase agreement is the authoritative document — read it carefully or have your lawyer flag the line items.
Tarion enrolment fee
Mandatory new-home warranty enrolment with Tarion. Fee is based on purchase price — typically $400–$1,200 on a single-family home, paid at closing. Non-negotiable.
Utility hook-ups and meter installations
Hydro, gas, and water meter installation and connection fees. Typically $1,500–$3,500 on a single-family home, varies by community and servicing arrangement.
Occupancy fees (condos only)
On pre-construction condos, you take 'interim occupancy' when your unit is ready, before the building is registered. Until registration, you pay an occupancy fee (sometimes called phantom rent) covering estimated interest on the unpaid balance, taxes, and common-element costs.
Occupancy fees can run $1,500–$3,500 per month for several months. The payments do not go toward the purchase price — they are essentially rent. Build this into your underwriting.
Legal fees and disbursements
Lawyer fees on new construction typically run $1,800–$3,000 — slightly higher than resale because of the additional document review (purchase agreement, schedules, builder disclosure, Tarion forms, condo disclosure where applicable).
Title insurance and other adjustments
Title insurance ($400–$600), property tax adjustments to closing date, utility adjustments, and (in some communities) grading and landscaping deposits that may or may not be refunded.
Items builders rarely include
Fencing, landscaping completion, basement finishing, window coverings, central vacuum, garage door opener, and any cosmetic finishing not specifically itemized in the contract. Assume nothing — 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
Total closing-cost budget
On a $700,000 Ottawa new construction freehold, plan for $25,000–$45,000 in closing-day cash beyond the down payment, depending on community, builder, and contract specifics. Pre-construction condos can run higher once occupancy fees are included.
FAQ
Frequently asked questions
- How much are closing costs on a new construction home in Ottawa?
- On a $700,000 Ottawa new construction freehold, total closing-day cash beyond down payment typically runs $25,000–$45,000. Pre-construction condos can run higher once interim occupancy fees are factored in.
- Is HST included in new construction prices in Ottawa?
- 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. Investors face different treatment — confirm in writing.
- What are development charges in Ottawa?
- Municipal development charges and provincial education levies are imposed at the building-permit stage and passed through to the buyer at closing — typically $10,000–$20,000 on a single-family home, depending on community. Some builders cap or absorb them; many do not.
- What are occupancy fees on a new condo?
- On pre-construction condos, you take interim occupancy when your unit is ready but before the building is registered. The monthly occupancy fee covers estimated interest, taxes, and common-element costs and does not go toward the purchase price. Typically $1,500–$3,500 per month for several months.
- Can closing costs be added to the mortgage?
- No — closing costs are cash-on-closing requirements. Lenders qualify you with the assumption that closing costs are paid from savings, not financed. Plan to have the cash beyond your down payment ready at closing.
Official Ottawa & Canadian resources
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