Building a house in Toronto doesn’t have to be stressful. By taking the time to do your research and understand the custom home build cost, you can bring your vision to life. Changes in costs vary depending on hard and soft costs. Here are the factors to consider when calculating the cost to build a house in Toronto.

Hard Costs

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.


 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.


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.


Over the last years, building duplexes, triplexes, and multi-dwelling units have grown in popularity as an investment opportunity, that comes with greater cash flow, additional tax benefits for owners, potential owner-occupied arrangements, and less risk of full vacancy.

Soft Costs

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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