A-507 Additions & New Builds
Custom homes and rebuilds, engineered and permitted in-house
A custom home or knockdown rebuild in the GTA typically costs $450 to $900 per square foot to construct, before land. Ontario requires an HCRA-licensed builder and Tarion enrolment.
- Typical cost
- $450–
$900 per sq ft - Timeline
- Up to 2 years in all
- Permit
- Yes, building and demolition
- Prices checked
- 2026
- Drawings and engineering in-house
- Permit applications in-house
- Free on-site estimate
Free, no-obligation estimate. We typically reply within 24 hours.
A-507.1 Why MKC
Why choose MKC for custom homes and rebuilds
A new house is a different job from a renovation, with different rules. Ontario requires a builder licensed by the Home Construction Regulatory Authority (HCRA) and Tarion warranty enrolment for new homes. Your contract names the licensed builder and the enrolment before work starts. Our in-house engineering department prepares the drawings, the structural design and the demolition and building permit applications, so design, approvals and budget move together. We only use ECRA/ESA-licensed electrical contractors to perform any electrical work.
Rebuild or renovate, priced side by side
Many owners of older GTA houses are choosing between a gut renovation and a new house on the same lot. We price both from one site review and zoning check. Published ranges are $300 to $550 per sq ft for a gut renovation and $450 to $900 for a custom build, so the house and the lot decide it.

A-507.2 Scope
What’s included
- A-507.1Knockdown rebuildsThe old house demolished under permit and a new one built on the same lot.
- A-507.2Custom homes on your lotA house designed around your lot, your family and your budget, from zoning review on.
- A-507.3Zoning and approvalsZoning review, minor variance drawings, tree permits and the building permit application.
- A-507.4Structural engineeringFoundations, framing, steel and long spans designed by our engineering department.
- A-507.5Checks before demolitionAsbestos sampling under Ontario Regulation 278/05, tested by an accredited lab.
- A-507.6HCRA builder and TarionThe contract names the HCRA-licensed builder and the Tarion enrolment before work starts.
A-507.3 Cost guide
What it costs
in Toronto & the GTA
Published 2026 construction prices per square foot for a custom detached house in Toronto and the GTA, before land.
Construction of a custom detached house, mid-range to high-end; land not included
Design, zoning review and any minor variance come first and often take longest. Toronto reviews complete house permit applications within 10 business days. Published guides put a conventional house at six to ten months to design and build, and a custom home at up to two years.
Every project is different, so your estimate comes with its own written schedule, and we aim to beat the usual industry timeline on every job.
| Level of work | Typical cost |
|---|---|
| Builder-grade customStandard plans and finishes on a straightforward lot. | $350– |
| Mid-range customArchitect-designed, good-quality finishes, a typical infill lot. | $450– |
| High-end customComplex architecture, premium envelope, stone and custom millwork. The top of Altus Group’s 2025 custom range. | $650– |
| Production builder, for scaleA tract-built house with an unfinished basement. Not a custom infill price; shown only for comparison. | $150– |
| Item | Typical price |
|---|---|
| Demolition of the existing house | $10,000– |
Worked examples
- Example 1
3,000 sq ft mid-range custom house in Toronto replacing a bungalow, demolition included
$1,360,000–$1,995,000 - Example 2
2,500 sq ft builder-grade custom house in a GTA suburb
$875,000–$1,125,000 - Example 3
3,500 sq ft custom house priced on Altus Group’s 2025 custom range
$1,820,000–$3,955,000
What moves the number
- 01Finish level
Builder-grade custom runs $350 to $450 per sq ft, mid-range $450 to $650 and high-end $650 to $1,130. Stone, millwork and appliances make the gap.
- 02The infill site
Demolition is estimated at $10,000 to $45,000, more with asbestos. Tight lots, protected trees and street access add cost on urban sites.
- 03Design complexity
Complex roofs, long spans, steel and large areas of glass cost more to engineer and build than a simple two-storey plan of the same size.
- 04The basement
A finished basement, extra depth or a walkout adds excavation, concrete and finishing that an above-grade rate may not include.
- 05Fees, charges and tax
Permit fees, development charges, service connections and HST sit outside the construction rate. Toronto’s permit fee is $18.56 per square metre.
Rebates, subsidies and tax credits
- Up to $130,000Ontario HST relief on new homes
Temporary relief: an Ontario rebate of up to $80,000 through the CRA, plus an Ontario payment of up to $50,000 for those who receive that rebate. The payment is up to $50,000 on homes up to $1.5 million, partial to $1.85 million and nil above, and is reduced by any federal HST rebate. Rules for a house built on your own land differ, so confirm with an accountant first.
Program rules
Construction cost only, before HST. Land, demolition, landscaping, financing, permit fees, development charges and service connections are extra. Sources only partly overlap, so the ranges are wide. Prices checked in 2026. Not a quote: your estimate is built from your own measurements and choices.
Where these numbers come from
- Do You Need a Licence to Build or Sell in Ontario?, Home Construction Regulatory Authority (2026)
- Coverage for Freehold Contract, Condo Units & Condo Conversions, Tarion (2026)
- New House (building permit application guide), City of Toronto (2026)
- Building Permit Fees, City of Toronto (2026 fees)
- Building Permit Review Streams, City of Toronto (2026)
- Building By-law Schedule “B”: 2026 Classes of Permits and Fees, City of Mississauga (2026)
- 2026 Fees and Charges By-law 051-2026, Schedule “F”: Building Standards, City of Vaughan (effective February 24, 2026)
- The Ontario New Home Affordability Payment, Government of Ontario (2026)
- Building construction price indexes, first quarter 2026, Statistics Canada (2026)
- Published 2026 price guides and GTA contractor price pages (2026)
G-003 How we work
How we deliver your custom home
- 1
Free Estimate
Tell us what you have in mind. We review your space and goals and give you a clear estimate at no cost.
- 2
Design + Permits
Our in-house designers model your project in 3D so you can see it and settle every choice. Our in-house engineering team prepares drawings, engineering letters and permit applications.
- 3
Material Procurement
We order cabinets, tile, stone, pavers and decking from trusted suppliers such as Unilock, Techo-Bloc, TimberTech and Trex, and schedule deliveries around the work.
- 4
Construction Process
Our crews build to code with site supervision and regular updates, so you always know where things stand.
- 5
Project Completion
Final inspection, walkthrough and clean-up. On time, within budget and beyond expectations. That is the MKC Guarantee.
Plan your project
with a free estimate.
We review your space and goals and give you a clear estimate at no cost.
A-507.4 Questions
Questions about custom homes and rebuilds
Don’t see your question? Call (647) 637-6052 or ask in your estimate request.
How much does it cost to build a custom home in Toronto?
Typical cost in Toronto and the GTA: $450 to $900 per sq ft (Construction of a custom detached house, mid-range to high-end; land not included). By level of work: Builder-grade custom: $350 to $450 per sq ft; Mid-range custom: $450 to $650 per sq ft; High-end custom: $650 to $1,130 per sq ft; Production builder, for scale: $150 to $275 per sq ft. Finish level moves the price most, then the complexity of the design and the site: demolition, a tight infill lot, the basement and the structure. These are typical ranges, before HST, with prices checked in 2026; your estimate is built from your own measurements and choices.
Who is allowed to build a new home in Ontario?
A builder licensed by the Home Construction Regulatory Authority. That includes a contract home, where you already own the land and hire a builder to construct a house on it: the HCRA requires that builder to be licensed as both vendor and builder. New homes must also be enrolled with Tarion. Your contract names the licensed builder and the enrolment before work starts, and you can look the builder up in the HCRA’s Ontario Builder Directory.
What does the Tarion warranty cover?
It runs from the date of possession. The one-year warranty covers defects in work and materials, unauthorized substitutions and Ontario Building Code violations. The two-year warranty covers water penetration through the basement or foundation, defects in the electrical, plumbing and heating systems, and exterior cladding. The seven-year warranty covers major structural defects. Tarion publishes the full terms and exclusions.
Can I act as my own builder?
Ontario allows it in limited cases. The HCRA says a person building a home for their own use on their own land may not need a builder’s licence, as long as they do not sell it after construction. An owner-built home is not eligible for the statutory warranty, and the owner takes on the builder’s role, including permits, workplace safety and insurance, and contracts with trades.
What permits does a knockdown rebuild need in Toronto?
A demolition permit for the old house and a building permit for the new one. In 2026 the building permit costs $18.56 per square metre plus $56.33 per unit, about $5,230 for a 3,000 sq ft house, and an unfinished basement is not counted. Demolition is $0.18 per square metre. Mississauga charges $18.99 per square metre and Vaughan $21.82. A design outside the zoning by-law needs a minor variance first.
Is a major renovation treated as a new home?
Usually not. The HCRA says renovations or upgrades to an existing home typically do not make it new, so the new-home licensing and Tarion warranty do not apply to them. A house demolished and replaced is a new home. Projects in between, such as keeping part of an old foundation, should be checked with the HCRA before the contract is signed.
What is left out of a per-square-foot price?
Published custom home rates cover construction only. They leave out the land, demolition of the existing house, landscaping, HST, financing, permit fees and municipal charges. Design, engineering and survey costs are often separate as well. Ask for an estimate that lists each of these, so two quotes can be compared on the same basis.
Can I see my new home in 3D before it is built?
Yes. We model the house in 3D, inside and out, so you can see every room, compare finishes and approve the design before the permit drawings are made.
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