Choosing to tear down and rebuild your home is a big decision. There are many factors to consider before embarking on the project, including the cost, timeline, and the overall process. Fortunately, the experts at ODIMA Construction have put together this blog to provide you with clear guidance as you make this important decision. This blog outlines and examines the cost to demolish and rebuild a house in Ontario versus renovating.
Key Takeaways
There are many different types of projects that need permits before renovations can begin. These projects fall within three main categories detailed below:
Cost to Renovate vs. Cost to Demolish and Rebuild in Ontario
Learning about the cost to demolish and rebuild a house in Ontario versus renovating a home can potentially save time and money. While each has its own advantages and disadvantages, the cost comparison is the most important factor to consider. Below, you’ll find the answers to the cost of tearing down and rebuilding as well as renovating.
How Much Does It Cost to Demolish and Rebuild a House in Ontario?
Demolishing a home in Ontario costs between $10,000 and $30,000. This can vary depending on square footage, ease of access to the property, material disposal, permit fees, and inspections. Typically, urban lots are more expensive to demolish because of the tight spaces and traffic control. Material disposal fees can also vary from one product and disposal site to another. The average cost to rebuild a house with a custom home building company ranges from $275 to $450 per square foot. This means that a 2,500 square foot home would cost anywhere from $687,500 to $1,125,000+ to demo and rebuild. This is before fees, landscaping expenses, and selecting finishes.
How Much Does It Cost to Renovate a House in Ontario?
Home renovations can cost between $100 and $300 per square foot, depending on the renovation size, type, complexity, and included materials and finishes. It’s important to note that a full-gut renovation can equal or exceed the total cost of building a new home. If you find underlying issues during the renovation, such as faulty wiring, a cracked or weakened foundation, or water damage, you risk the price increasing further.

What Is Involved in Pre-Demo Work?
Part of the cost to demolish a house is the pre-demo work. This comes before the demolition and involves the following:
What is the Demolition Process for a Home?
Now that you have a better understanding of the cost to tear down a house, it’s time to look closer at the steps involved. Here you can explore the general home demolition process:
Cost of Demolishing a House in Ontario
Every home and demolition are slightly different. The cost to demolish a house will vary based on the project specifications. As an example, the cost to tear down a house that’s 1,500-square-feet might cost $12,000 to $18,000. Alternatively, demoing a larger home with a pool and separate garage would likely exceed $30,000. Here’s a closer look at the cost of demolishing a home, including how to estimate and calculate demolition costs, tips for a cheaper demo, and guidance on when to rebuild and when to renovate:
How To Estimate Demolition Costs
- Square Footage: Typically, a demo can cost anywhere from $2 to $17 per square foot. This gives an idea of the minimum cost based on your home’s size.
- Complexity: Properties with finished basements, compact lots, and/or difficult access are more complex. If your home has one or more of these elements, you’ll likely have additional demo expenses.
- Hazards: Finding and removing hazards such as mold can cost up to $25 per square foot.
- Add-Ons: Homes with additional structures or features on the property have higher demolition costs. Demoing garages costs between $2,000 and, $9,000, pools $3,000 to $20,000, decks $500 to $3,000, and driveways $1,800 to $2,500.
How Do You Calculate Construction and Demolition Waste?
Typically, you can expect to have roughly 80 pounds of debris per square foot of demolition. If you have a 2,000 square foot home, that would be approximately 160,000 pounds of waste and debris to collect and dispose of. Sorting recyclable materials is a good way to reduce your total disposal fees, which can be steep depending on your location. As an example, the disposal fees in Toronto range from $150 to $400 per ton.
What Is the Cheapest Way to Demolish a House
The best way to reduce the cost to demolish a house is to choose mechanical demolition. Using an excavator and dumpster service is also great for decreasing costs. This is faster and less expensive method than manual removal. If your house contains valuable and salvageable materials such as antique flooring or high-end cabinetry, you may could recover some of the demolition costs through resale or donation tax credits. However, this involves deconstruction, which takes more time and coordination.
Should I Demolish and Rebuild or Renovate?
Deciding to renovate or tear down and rebuild requires careful consideration of your budget, home’s age, location, and overall goals. In some instances, the cost to rebuild a house could be less than the cost of a renovation. For example, if you live an old home, you could incur more expenses in repairs than it would cost to perform a complete demo. Here’s a simple overview of when each option is most suitable:
Demolish & Rebuild
Renovate

Demolition vs. Deconstruction
When you’re calculating the cost to demolish a house in Ontario, it’s vital to remember that different demolition method have different costs. The following explains how demolitions and deconstruction vary from one another, including average costs:
Renovate or Demolish and Rebuild?
Your choice between a major renovation or a tear down and rebuild should be based on your long-term goals, current home condition, and budget. While renovating can save you money in the short term, you may end up spending more than the cost to demolish and rebuild a house in Ontario after repairs and upgrades. A demolition and rebuild is an opportunity to create a lasting space for the next chapter of you and your family’s life. Contact ODMA Construction for a free consultation to discuss your home renovation or rebuild plans.
FAQs
Yes, the cost to tear down a house and rebuild can be worth the upfront expenses.
The entire demolition and rebuilding process takes approximately 12 to 18 months. However, this can vary based on the project scope, size, and complexity. Here’s a timeline breakdown:
Planning & Permits Applications: On average, planning and permit approvals can take between 2 to 6 months.
Demolition: May take 1 to 2 weeks or longer depending on the demolition method and complexity.
Architecture, Engineering, & Design: Typically takes 2 to 3 months, which overlaps with the permitting timeline.
Construction: A total of 8 to 12 months or longer for custom and/or luxury homes.
Yes, you can get a construction mortgage to help cover the cost to demolish and rebuild a house in Ontario. A construction mortgage is released in stages as the project progresses. Here’s an overview of the process:
Lenders often require 20% down. Typically, working with a licensed builder is also part of the mortgage requirements.
Your land value is appraised and the equity in the property is used as the collateral.
The funds are released in “draws” as work is completed throughout various stages of the project.
You’ll need to obtain detailed drawings, permits, and a builder contract to qualify for a construction mortgage.