Building a house in Toronto doesn’t have to be stressful. When you see a simplified version of custom home build cost, it becomes easier to understand changes depending on hard and soft costs. At ODIMA Construction, we make it our priority to ensure your complete satisfaction throughout the home build project. To address your concerns and make the process easier, we have created a breakdown of the costs to build a custom home.

Hard Costs

Hard costs, also known as direct costs, directly relate to the physical construction of a project. These expenses typically include materials, labour, equipment, and land development. They are tangible expenses that are necessary for the completion of the project.

Land Development

One of the primary costs associated with new home construction in the GTA is land development costs. These include the purchase price, down payment, land transfer tax, legal fees, and cost to close. It is important to keep these costs in mind as over and above the cost to build your home. This will allow you to better plan your budget and ensure you can still include all the features and luxuries that are important to you in your design later on in the building process.

Foundation

 Whether you are doing a tear-down or a new build, your construction project will require a new foundation. This price generally runs between ​​$22.00 – $26.00 per square foot, or $26,000 on a 10,000 square foot home.

Framing

Once the foundation is poured, then your home begins to take shape. Your construction team will begin framing your home. These are bones of the structure that the rest of the home will be built around. You will soon be able to make out rooms, closets, and other key spaces in your home. For the average home in Toronto, this costs between $40 and $50 per square foot.

Exterior Finish

 Now that your home is starting to take shape, it’s time to pick the exterior finishes. These costs can vary greatly depending on the size of your home and the type of material you choose. The new brick installation will generally cost between $38 to $60 per square foot. A natural stone finish is approximately $30 to $48 while vinyl siding costs $2 to $8 per square foot. 

Interior Rough-Ins

Rough-in services such as plumbing are needed before elements like plaster walls are installed. Remember to keep in mind that these costs increase with the addition of each bathroom. The average cost for interior rough-ins is between $8,000 to $12,000, or $4.50 per square foot.

Interior Finish

These are the important final touches to your home such as plaster and wall finishes. These costs can vary based on the finishes you choose, but are usually in the range of $8 to $11 per square foot.

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Soft Costs

Soft costs, or indirect costs, are expenses not directly tied to construction work. These costs include insurance, taxes, permits, legal fees, architectural and engineering fees, and project management fees. Throughout the custom home building project, soft costs incur that are necessary for the overall success of the project and compliance with regulations.

  • Legal Fees. Most home purchases require the assistance of lawyers who will check for factors like lines on existing properties and help complete any legal documents pertaining to your property. These fees vary by lawyer and it is recommended to discuss these fees prior to beginning the purchase process. 
  • Agent Fees. Another important cost to building a custom home is the agent fees. Your agent helped you find the perfect location for your dream home. In doing so, they are entitled to a small percentage of the purchase price. According to the Ontario Real Estate Commission, the standard real estate agent commission is 5% of the property price plus HST, but in practice, the commission can range anywhere from 3.5% to 5%. The total commission is divided between the buyer and seller agents, where the buyer’s portion is typically fixed at 2.5%.
  • Building Permits and Development Charges. Whether you are doing renovations or building from scratch, you will likely require building permits. These ensure that your home meets local building codes and standards. Development charges are fees paid to the municipality to help cover the costs of connections to services like sewer and gas.
  • Architectural Design. You have a vision for your home, and an architectural designer can help put it on paper. Depending on the type of home you are building, these fees range from $3 to $10 per square foot.
  • Engineering Fees. Outline the details of your home such as structural features. These fees range from $6 per square foot for the more basic drawings to $15 per square foot for more elaborate home builds. 
  • Site Survey. This ensures that your home can be built on the land you have chosen. A land survey generally costs between $2,500 to $5,000.
  • Taxes. There are a few different taxes that have to be paid when building a home. The first is land transfer taxes. These are changed based on the value of the property. According to the Province of Ontario, the current fees are: amounts up to and including $55,000: 0.5% amounts exceeding $55,000, up to and including $250,000: 1.0% amounts exceeding $250,000: 1.5%.
  • Management Fees. Your project manager helps see your new home construction from the design phase to handing over the keys. The project manager generally takes 10% of the cost of invoices related to the project. 
  • Insurance. If you bought your home using a mortgage, then you will most likely be asked to pay mortgage insurance. This protects your lender against default should you no longer be able to pay the loan. Rates may vary depending on your lender.

Contact ODIMA Construction to begin building your new home. We can guide you through the entire process. Our project managers are there for you to ensure all the necessary requirements are met such as fees and permits. Let us help you build your dream home!


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What is the Average Size Home in Canada?

The average sized home in Canada varies based on the type of home. For example, the average square footage for a mansion in Canada is between 5000 and 8000 sq. ft. On the other hand, the average size of a bungalow in Canada is between 900 and 1400 sq. ft.

Factors that Influence the Cost of Your Custom Home

The cost of your complete home remodeling project depends on factors such as location, materials, and design choices.

Size is another important factor that greatly influences the cost of building your home.

Bigger homes come with more square footage which leads to higher building expenses.

The type of finishes you choose and whether you include additional amenities such (i.e. custom cabinetry, millwork, pool, gym etc.) will also impact the total cost of your custom home.

Toronto Cost Trends Going Forward

The cost of building custom homes are hiring home renovators in Toronto is increasing because of the growing demand for sustainable and efficient housing.

Custom homes are now integrating more energy-efficient features, like solar panels and smart home technology, to minimize the impact on the environment and lower utility expenses. 

The design trends for custom homes in Toronto are contemporary, with an emphasis on open-concept layouts, large windows, and high-quality finishes.


Premium features such as more outdoor living spaces, such as rooftop decks and backyard gardens, to maximize usable space also adds to rising design costs.

Overall, the main trends in Toronto’s custom home market are to create sustainable, functional, and aesthetically pleasing living spaces for homeowners.

Next Steps

When you choose ODIMA Construction to build your custom home, we promise to bring your vision to life with exceptional craftsmanship and transparent pricing. Our project managers are there for you to ensure all the necessary requirements are met, such as fees and permits. Rely on us for accurate estimates, expert guidance, and trust that we commit to staying within your budget. If you’re interested in hiring custom home renovators in Toronto or the GTA, contact ODIMA Construction for a free estimate.