The Markham Buyer's Guide to New Construction Closing Costs: Development Charges, Tarion, Upgrades and Adjustments
The Markham Buyer's Guide to New Construction Closing Costs: Development Charges, Tarion, Upgrades and Adjustments
The price at the sales centre is not the cheque you write on closing day. Here is every cost to look for, and how to keep it in check.
Neeraj Moolchandani is a top real estate agent in Markham, Ontario.
The Short Answer
New home buyers in Markham often pay closing adjustments on top of the purchase price, such as development charge increases, utility meter and connection fees, Tarion enrolment, park or education levies, and land transfer tax. Condo buyers may also pay interim occupancy fees before the building registers. These costs are set out in schedules to the builder's agreement, some capped and some not. Have a lawyer review the agreement, ask for a total cap on adjustments, and confirm how any HST rebate is handled before you sign.
Neeraj and the Kaizen Real Estate Team, one of the teams Markham buyers rely on at builder sales centres, see closing adjustments surprise buyers more than any other cost. This guide goes deeper than our new home vs resale guide into the money side.
Common Closing Adjustments
| Cost | What It Is | What to Ask |
|---|---|---|
| Development charge increases | Municipal fees on new homes; builders may pass on increases after you sign | Is this capped, and at what amount? |
| Utility meters and connections | Hydro, water, and gas hookups and meters | Is there a fixed amount or a cap? |
| Tarion enrolment fee | The builder's fee to enrol your home in the warranty program | Is it included in the price or charged at closing? |
| Park, school, or other levies | Fees set by the City, region, or school board | Which levies apply and are they capped? |
| Land transfer tax | Ontario tax on the purchase | First time buyers may get a rebate of up to $4,000 |
| Law Society and registration fees | Legal and government fees to register the home | Ask your lawyer for a full estimate |
How Big Can They Get?
It varies widely by builder and project. In one widely reported example from a nearby city, a pre construction condo buyer faced tens of thousands of dollars in charges for utility meters, development charges, and park levies, and the builder removed $47,200 once the buyer's lawyer pointed out caps in the agreement. The lesson is simple: read the schedules, and have a lawyer check them.
Looking at a builder agreement? Neeraj can help you spot the costs before you sign. Call or text Neeraj at (647) 370 8885.
Upgrades and Extras
- Set a firm upgrade budget before your design centre visit.
- Ask which upgrades are cheaper to do after closing, such as lighting or paint.
- Focus on items that are hard to change later, like ceiling height, layout, and rough ins.
- Get every upgrade price in writing and include it in your agreement.
HST and Rebates
New homes include HST in the price. Builders usually claim the standard rebate for you, and the agreement sets out who receives it. If you do not qualify, for example because you will not live in the home, you may owe that amount on closing. First time buyers may also qualify for larger rebates on homes up to $1.5 million. See our first time buyer's guide and confirm your eligibility with your lawyer.
Condo Interim Occupancy
In a new condo you often move in before the building is registered. During this interim occupancy, you pay a monthly fee made up of estimated interest on the unpaid balance, estimated property tax, and common expenses. It does not reduce your purchase price. It can last for months, so budget for it.
Comparing a new build with a resale home? Let us put the true costs side by side. Call or text Neeraj at (647) 370 8885.
How to Protect Yourself
- Ask for the full list of adjustments before you sign.
- Negotiate a total cap on closing adjustments, especially development charge increases.
- For condos, use the 10 day cooling off period for a lawyer's review.
- For freehold homes, have a lawyer review the agreement before signing, since there is no cooling off period.
- Keep a cash cushion for closing day.
Your deposit is protected by Tarion up to set limits, such as up to $20,000 for condos. See how Neeraj helps with new construction.
Know the full price before you commit. Reach out anytime. Call or text Neeraj at (647) 370 8885.
New Build Closing Cost Questions, Answered
What closing costs are there on a new build in Ontario?
Common closing adjustments include development charge increases, utility meters and connections, Tarion enrolment, park or other levies, and land transfer tax, plus legal and registration fees.
Can I cap closing adjustments on a new home?
Often you can negotiate caps, especially on development charge increases and utility connections. Have a lawyer review the agreement's schedules before you sign.
What is interim occupancy in a new condo?
It is the period when you live in a new condo before the building registers. You pay a monthly fee for estimated interest, property tax, and common expenses, which does not reduce your price.
Who gets the HST rebate on a new home?
Builders usually claim the standard new home rebate and credit it to you in the price. If you do not qualify, you may owe that amount on closing. Check the agreement with your lawyer.
Is there a cooling off period for new homes in Ontario?
New condo purchases from a builder have a 10 day cooling off period. Freehold new home agreements do not, so get legal review before you sign.
Know the Real Price Before You Sign
Neeraj will help you read the agreement, compare costs, and negotiate before you commit.
Call or text (647) 370 8885 · info@kaizenrealestate.ca
Kaizen Real Estate Team, eXp Realty, Brokerage · 9763 Markham Rd, Markham, ON L6E 1A4
Example figures: Move Smartly, 2022. Deposit protection: Tarion. Rebates: TRREB 2026 fact sheet. Have a lawyer review every builder agreement. This article is general information, not legal, tax, mortgage, or financial advice. Market commentary describes current conditions and is not a promise of future prices. Information is believed accurate but should be independently verified. Not intended to solicit properties currently under contract.
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