Are you worried sick about building your new House in Ontario? We understand how intimidating it must be to come up with an estimate and cost break down before beginning the construction process of your dream home. So, let’s walk you through the basic framework and costs for building a home in Ontario.
In Ontario, the average cost of building a home per square foot is between 150$-300$. If you intend to construct a 1000 sq ft home, it will cost you around 150,000$-300,000$. However, these are just ballpark figures and you need to consider the following major factors when building a home in Ontario.
Factors to consider while building a home in Ontario in 2023
Location
The cost of building a home may vary greatly based on the location. A 1000 sq ft house in Toronto, Ontario is a luxury not known to many while a house of similar size in a smaller city may be considered affordable by the locals. Even older homes that need renovation may cost up to 1 million$ in economically affected provinces, such as Ontario. Therefore, you have to keep the impending higher cost if you plan to build your home in an expensive province like Ontario.
Choosing the right contractor
When it comes to building a home, you need to spend time researching and appointing the right contractor to build your dream home. The task may seem daunting, however you can choose the right contractor by taking multiple quotes from different contractors and hiring the one with a decent past work experience. These include plumbers, general contractors, architects etc. Majority contractors charge a 10-20% deposit of the build’s total cost.
How to keep construction costs at a minimum?
The right contractor will help you build your dream home while also keeping the costs to a minimum. According to reliable house contractors, you can build your dream home in Ontario and reduce construction costs by opting for
● pre designed home construction templates
● Low cost but robust building materials such as using granite for the kitchen counter instead of laminate
● Smaller homes with a compact build
● Single story home if double story is not a necessity
You may also reduce construction cost by saving your additional aesthetic concerns for later and cater to them once the initial build of your house is complete.
Mortgage
In case you do not have huge savings to fund the construction of your house, you can opt for construction mortgages through financial institutions in Ontario, albeit at a higher interest rate.
You have to have a down payment of at least 20% of the total cost to be eligible for a construction mortgage. Compared to receiving a large sum of money with a traditional mortgage, financial institutions practice “progress draw mortgage” by which the requested funding is lent in stages.
Between each stage, an inspector comes and evaluates the progress of construction, safety, schedule and budget of your home being built and prepares an analysis report that is reviewed by the institution before the disbursement of the next sum of funds.
Fee, permits and Labour Costs
You may need to consider additional costs subjected by regulatory bodies that regulate home constructions according to state laws. The permit costs vary based on the city. Get yourself acquainted with the necessary permits that you may need before beginning the construction of your home in Ontario.
City of Toronto Building Fees
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Halifax Building Fees
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A 2022 Altus study estimated that construction permit delays in high density development may contribute to additional costs of up to $2,600 to $3,300 per month. Within Ontario, you can expect to pay between 10,000$-30,000$ for building permits.
Additionally, mass labor layoffs post the COVID 19 pandemic and rising costs of construction raw materials has caused an upsurge in home construction costs. So, we suggest you consult an experienced contractor who shall quote you an accurate cost estimate of building a home in Ontario.
To Build or to Buy a house?
The average cost of a furnished house in Ontario ranges from 500,000$-600,000$. If you wish to build your house, you need to consider the cost of buying the land. Land prices vary greatly depending on location. An average sized land in Toronto will cost you around 900,000$ while you could purchase a larger sized land for half the price in Ottawa. It all comes down to your personal preference, budget, future projections and patience to build a home in Ontario. So, choose wisely depending upon your current situation.
