New construction
Tarion warranty enrolment and builder closing adjustments
By Bo Yu, Broker, Right at Home Realty, Brokerage · Verified/updated August 2026
Every new freehold home and condo unit in Ontario must be enrolled with Tarion, which backs the statutory new home warranty. The builder is the one legally required to enrol the home and pay the enrolment fee to Tarion.
In practice most Ontario purchase agreements pass that fee through to the buyer as a closing adjustment, alongside development levies, utility connection charges, meter installations and law-society or Ontario Builder Directory fees.
Enrolment is separate from your warranty coverage, which is free to you and runs one, two and seven years depending on the defect.
- Who charges it
- Tarion charges the builder; the builder passes it through under the agreement of purchase and sale.
- Who normally pays
- The builder is liable to Tarion; the buyer typically reimburses it at closing if the contract says so.
- When it's paid
- On closing day, on the builder's statement of adjustments.
- Cash or financed
- Cash at closing.
- Typical range
- $661–$2,345 including HST on most Ottawa price bands
How it's calculated — and why it varies
Tarion's enrolment fee schedule in force since September 1, 2025 is banded by the home's price, with 13% HST added on top. Selected bands:
- Up to $300,000: $585 + $76.05 HST = $661.05
- $400,000.01–$450,000: $815 + $105.95 HST = $920.95
- $500,000.01–$550,000: $970 + $126.10 HST = $1,096.10
- $600,000.01–$650,000: $1,515 + $196.95 HST = $1,711.95
- $700,000.01–$750,000: $1,670 + $217.10 HST = $1,887.10
- $950,000.01–$1,000,000: $2,075 + $269.75 HST = $2,344.75
- Higher bands continue above $1,000,000 — check Tarion's current schedule for the exact figure.
- A previously proposed temporary $250 capital-replenishment increase was withdrawn after consultation and is not in force.
Exemptions, refunds and when it doesn't apply
- Resale homes have no enrolment fee. This only arises on new construction.
- Whether you reimburse it depends entirely on your agreement of purchase and sale — read the adjustments clause before you sign.
- Well-negotiated agreements cap total closing adjustments; on an uncapped agreement, development levies alone can run $10,000–$25,000 on an Ottawa single-family home.
- Warranty coverage itself costs you nothing extra; the enrolment fee is a one-time administrative charge.
- HCRA licensing of builders is separate from Tarion warranty administration; neither adds a further buyer fee.
A real Ottawa example
A $735,000 new single in Riverside South: the Tarion enrolment fee falls in the $700,000.01–$750,000 band, so $1,887.10 including HST appears on the builder's statement of adjustments.
On the same closing, the buyer also sees development and education levies, a hydro and water meter charge, and a Tarion-related administration fee — which is why a capped-adjustments clause is worth negotiating at the purchase stage.
How this shows up in the calculator
The calculator does not add a Tarion row, because the amount depends on your price band and on whether your agreement passes it through. Take the figure from your own agreement and add it to the calculator's cash-to-close total, along with any levies.
Open the calculatorOfficial sources — verified/updated August 2026
Rules and rates change. These are the first-party pages this one was checked against; confirm anything that matters to your purchase directly with them.
Every figure on this page is a planning estimate 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.
This page is general information about how a cost works in Ontario, not legal, tax, mortgage or accounting advice, and not a quote. Your lawyer, lender and accountant confirm what actually applies to your purchase.
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