New Homes: Possible Hidden Costs and Holdbacks

 Hydro meter and service  $250 to $500 +
 Water meter and service  $250 to $500 +
 New Ontario New Home Warrantee Program Fee  $2 per $1,000 of P.P.
 Sub-division landscaping, trees and fences  $250 to $1,000 +
 Builder's fire insurance  $400 to $1,000 +
 Driveway paving fee or holdback  $500 to $1,000 +
 Grading damage holdback  $250 to $1,000 +
 Builder's legal fees  $250 to $1,000 +
 Mortgage cancellation fees  $250 to $800 +
 Mortgage appraisal, processing, legal  $150 to $1,000+
 Mortgage interest adjustment  $50 to $1,500 +
 Fed, Prov. or Municipal Taxes such as GST or lot levies  $2,000 to $25,000
 Educational Lot Levy  $1,200 to $2,000 +
 Builders extra cost on labour and materials due to tax increases  

 Driveway apron paving $500
 Subdivision damage deposit $600 refundable 3 - 4 yrs after closing
 Survey $600
 Builder's Law Society of Upper Canada levy $50
 Fencing $2,600 on corner lot
Deed fee $107
ONHWP $75

Often, the Agreement of Purchase and Sale is written completely in favour of the builder. Seek legal advice before signing the Contract. Generally, the Agreement is a contact that obligates you to purchase a home but does not obligate the builder to build it. If he wants to build you a home, at his convience, you will have to buy it.


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1/6/08