How much does it cost to build a house in Ontario?

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How much does it cost to build a house in Ontario?


Building a new house gives you the chance to combine all the features and fittings you want into a perfect home. It can be a far better alternative than buying a house. This is doubly true if you are particular in regards to the things you want to see in your dream home. All in all, the key factor that will affect your choices when building your home is the cost. While you want to include everything in your dream home, you also need to be careful. That is why it pays to start by researching how much it costs to build a house in Ontario.

What is the average cost of building a house in Ontario?

On average, it costs between $130 and $400 per sq. ft. to build a detached home, thought the cost may be lower or higher. It all depends on where you want to build your home, the builder you are using, and the selected design and the materials. You should also understand that the main factor that affects the cost of construction is whether you want a predesigned or a custom-built home. As you may have guessed, it will cost you less to build a predesigned home.


As the largest province in Canada in terms of population, Ontario has the country’s fastest-growing housing market. Building a house in smaller cities, towns and villages in Ontario will be cheaper. For example, building a house in the Greater Toronto Area will cost between $110 and $400 per sq. ft. The cost of building a house in Ottawa ranges from $235 to $375 per sq. ft.

The cost is significantly lower in rural areas. According to Altus Group, the cost of materials and labour differs considerably between markets. The specifications and standards of each building type also vary from one city to the next.

You should note that the average cost of building a house mentioned above does not include the cost of buying land and acquiring permits. These additional costs are what cause most homeowners to renovate their existing property. If you need some work done on your roof, consider contacting D’Angelo & Sons, roofing contractor in Hamilton.

Factors that affect the cost of building a house

  • Land

The overall cost of building a house in Ontario is affected significantly by the worksite itself. Whether the land is sloping or flat will affect the total cost of building your dream house. You also have to account for other hidden costs, such as large boulders under the land, which may have to be cleared before construction starts.

  • Location

Where you plan on building your house will have a significant effect on the total cost. It is cheaper to build in rural areas than in the suburbs or major cities. Building in the cities costs more because metropolitan areas are the most desirable places to live in, and there are strict building standards here.

  • Fees, permits and inspections

There are regulations you have to meet when building your home. Most of these these are reviewed and updated constantly. Needless to say, it is not free to apply for permits and inspections. You will incur several costs when keeping your home up to code.

  • Restrictive covenants

There are situations where a homeowners’ association requires that homes being built in a certain area be of a particular design or use specific building materials. This is common when building a home within a gated community. These requirements may affect the cost of building a house in Ontario.

  • One or two-story

It is more expensive to build a two-storey home, as they require more construction and additional items. Building a two-storey may include creating an additional floor, scaffolding, a staircase and more.

  • Materials used

The selected materials will have a significant impact on the overall cost of building a house.

  • Tradesperson

Labour costs will add up as you hire different professionals to complete your project. You will need to work with such tradespersons as plumbers, electricians, roofers and more.

  • Design and size of your house

How big will your house be? The more sq. ft. the house covers, the more expensive it will be to construct. The architectural design will also affect the cost – if you need more bedrooms, a deck, pool and other additional rooms, you should expect to spend more.

Getting an estimate for building a house

When you need an estimate for your new home, you will have two options:

  • Construction cost calculators

There are several online building cost calculators you can use to get a ballpark figure of how much it will cost to build your dream home. While these tools are useful in getting a rough idea of how much the construction will cost, they are not accurate quotes. Prior to using these tools, make sure you understand the assumptions that the cost calculator makes. You should take the final results with a grain of salt.

  • Get a custom quote

This is the best way to go if you need a more accurate quote. A custom quote takes into account all the specifics of your dream home and includes the drawing up of plans. However, you need to know what has been included in the quote. This will help you know what costs more. For a custom quote, you can start by contacting Crown Construction, custom home builder in Toronto.

How to finance the construction of your home

If the cost of building a home is more than what you expected, you still have options. You can apply for a home construction loan or a self-build mortgage. These loans are often set to allow you to buy vacant land and build on it within a specified timeframe. You will be required to pay a down payment of between 25 and 30 per cent. A construction mortgage will be secured by the piece of land you plan on building on as well as any improvement value.

Numerous factors affect the cost of building a house in Ontario. Researching all your options and obtaining accurate quotes will help you better prepare for the project.

*photo courtesy of Crown Construction 


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