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How Much Does It Cost to Build a House?

Having a house of your own design and building a dream house is something we all want. It is definitely exciting but involves a lot of pre-planning and processing. The cost associated with building a house in Ontario and the long, tedious process can lead to fruitful outcomes if you can achieve a perfect fusion of artistic balance and structural integrity. Nonetheless, the real trick of the trade is to achieve your dream home within your budget. 

The cost per square foot to build a house drives the entire construction process and it is, unfortunately, a variable. A good estimate can be made, but there are so many small parts that have to come together and each of these parts is vulnerable to price change. 

If you are looking for ways to build your safe haven without being penniless at the end of the road, this article will break down the cost to build a house in Ontario. To give you the complete picture, we have also added the cost to build a house calculator and other important aspects to consider for house building and ways you can generate a reliable estimate.

Average Cost to Build a House in Canada

On average, the cost per square foot to build a house in Canada is between $90 and $265. To build a 2,500 square foot house you will need between $720,000 to $890,000. Many factors will determine the cost of your home, but a major decider is a location. 

Depending on where you want to build the house, the cost will fluctuate significantly. Another aspect is the design. If you opt for a pre-designed layout, it is usually cheaper. The more custom changes you include the higher will be the price. Here is a list of average city-wise costs per square foot to build the house in Canada according to Altus Group’s 2022 Canadian Cost Guide.

  • Vancouver $200 to $300.
  • Ottawa: $235 to $375
  • St. John’s: $150 to $350 
  • Edmonton: $130 to $185
  • Winnipeg: $130 to $350
  • Toronto: $250 to $300 
  • Halifax: $90 to $150
  • Montreal: $165 to $350
  • Calgary: $190 to $300 

The above-mentioned costs do not account for land purchase and permit costs. 

custom house building cost

Cost to Build a House in Ontario

Ontario is the largest province in Canada. From 2016 to 2020, it had a rapid growth rate of 9.56% making its housing market one the fastest growing one. In the greater Toronto area, the cost per square foot to build a house is around $250 to $300.

In Ottawa, it is around $235 to $375. Thus, it is clear from the cost to build a house calculator within the province also varies depending on where you want to settle. The key reason for this difference is that labour and material cost differs with regions. Moreover, the cost of specifications also varies which affects the cost. In rural areas, the cost is much lower.

Factors Affecting the Cost to Build a House in Ontario

Here is a breakdown of the factors which play a role in deciding the costs per square foot to build a house. 

Land

The land where the house is to be built is very important. It affects the overall cost of building a home in Ontario. Is the land flat or slopping? Is the land loose sand or are there large boulders underground? A hard floor is difficult to dig into and slopping land needs to be flattened. These two factors will boost the cost put into prep the land.

Location

When it comes to real state, it's all about location. According to the cost to build a house calculator, the cost of building a house in Ontario varies depending on whether you are building in a city, suburb, or rural area. The population, access to facilities like departmental stores and parks also affect the cost. The more preferred the area is, the more will be the cost of property and construction.

Fees, Permits, and Inspections

To build a home you need to pass regulations set by the government. The plan has to be reviewed and you will need a permit before starting construction. Once you have started, there will be an additional inspection to make sure that you are following guidelines. The documentation associated with costs per square foot to build a house and permits can be expensive. Once again, the location of your house will decide how many restrictions apply and documentation requirements.

Restrictions

There are instances where the house has to follow certain guidelines. This is especially the case if you are building in a community. Specific material and design plans have to be followed. Since you need to mend your design around these restrictions, the cost to build a house in Ontario can rise.

Building Story

This is a simple factor. A single-story house will cost less than a two-story one. However, the cost per square foot to build a house to build is not half-and-half. Since there is no groundwork for the second story, the cost of a two-story home is not double that of a single-story one.

Materials Used

The materials used will have a significant impact on cost. Bricks, stones, paints, etc. have various grades and qualities. If you are looking for luxury and top-end finishes, you can expect to pay more.  

Cost to build a house calculator

ontario house cost

How to Estimate the Cost to Build a House in Ontario?

There are two sure methods of getting reliable estimates of how much you will spend on your home.

Cost to Build a House Calculator

You can get a reliable estimate in the comfort of your home. These tools give a rough idea of what the cost will be per square foot to build a house. Before use, remember that these tools don’t provide a perfect quote and understand the underlying assumptions each calculator uses.   

Custom Quotes

For a clear picture regarding your financial situation for a house getting a quote from a builder is better. They are experts of trade and take into account specific requirements of cost per square foot to build a house, size, layout, features, etc. This is more specific and gives a more accurate figure on your house. We suggest that you get a quote from multiple sources and get a detailed list of all the costs the quote includes. 

Ways to Fund Your House Building Project

If you are looking for ways to pay for your home, you can consider construction loans or mortgages. It is better to talk to a broker early on, to figure out what you qualify for. The most commonly used mortgage types are completion mortgage and draw mortgage.  

The Takeaway  

Building a home is dream come true. It is a long process but it doesn’t have to be more cumbersome. By knowing the factors that affect prices you can identify and implement reliable ways to cut down costs without compromising quality. Being well informed is the first step towards completing your project on your terms in your budget. 

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