Demystifying Building Permit Cost in Ontario; Tips and Insights

building Plan Ontario drawn after we offered one of our building permit services

Getting to know the building permit cost in Ontario is important. Building permits ensure that your plans comply with regulations and building codes, for safety, quality, and integrity.  But you want to carefully watch how it affects the overall cost of your project.

Whether planning a renovation, constructing a new building, or adding a shed to your property, prepare for your building permit fees. Like hiring a builder, land transfer fees, and purchasing land, building permits are a vital hidden cost that inflates your construction expenses.

At the core, building permit costs depend on a couple of factors. The first and most obvious is the size of your project. So, you already know a mammoth-sized skyscraper would require more paperwork and inspections than a backyard shed. But then there are provincial fees, which change from one region to the next.

This blog post explores the factors influencing building permit costs in Ontario. You will also gain insights into the factors affecting building permit fees. We also provide all the details on how much it costs from one region to the next.

 

How much does a building permit cost in Ontario?

Now let’s consider a ballpark calculation of the building permit fees you pay. For example, the city of Toronto’s building permit fees for a basic project are $200 to $1,000. An example of such a basic project is constructing a deck or renovating a tiny place in your home. In contrast, substantial construction, such as a full-blown secondary suite may range from $3,000 to $10,000 or more.

Toronto Building Payments Online Website

That said, almost every municipality uses a building permit calculator with the formula:

Permit Fee (rounded to the nearest dollar) = SI X A

Where SI is the Service Index. This is the classification for the work proposed and

A floor area in metre square (m2) of the work involved.

The Service Index classification refers to the different groups of buildings across any region in Ontario. For instance, we can group public spaces under Group A. Examples include worship centres, restaurants, outdoor patios, theatres, and portable classrooms.

Other groups include residential buildings, industrial buildings, mercantile, and business and personal services.

Beyond that, every municipality has a minimum fee for a permit. This means no matter how small your construction is, no permit fees go beneath that number. You may also have to pay an additional non-refundable fee for your application. This usually happens when building permits are online.

 

Four common permit types and their respective costs across the GTA, Peel, Durham, and Hamilton regions.

 

City/municipality Detached, semi, townhouse, secondary suite, duplex (new construction) Heating/boiler replacement Basement finishing Plumbing/Draining components
Mississauga $18.44/m2 $237 per unit $5.48/m2 $41 per fixture
Toronto $17.16/m2 $198.59 – $250.22 flat fee $4.93/m2 $21.45 per fixture
Vaughan $19.99/m2 $320 flat fee $6.69/m2 $20 per fixture
Oshawa $4.56/m2 $155 – $235 flat fee $155 flat fee $7.56/m2
Ajax $12.96/m2 $134 flat fee $4.00/m2 $1.40 per fixture
Niagara Falls $17.00/m2 $225 flat fee per unit $10.00/m2 $225
Oakville $23.25/m2 $220 flat fee $4.90/m2 $102 flat fee
Halton $18.39/m2 $350 per unit $8.86/m2 $349.00
Burlington $21.36/m2 $348.00 per unit $8.06/m2 5.58/m2
Brampton $16.24/m2 $182 per unit $108.24 $16.09 per fixture
Pickering $1,100 flat fee $15.40/m2 $6.30/m2 $15.40
Scarborough $0.25m2 $50 $12.50 per $1,000 of est. construction $10.00 per fixture
Bowmanville $14.89 $276 flat fee $6. 91/m2 $19.59 per fixture

This information is subject to change and property pathways do not confirm its accuracy. Visit the local building department to view fee schedule

 

Factors Affecting Building Permit Costs

There are no fixed building permit fees. They depend on many different factors and can change from one season to the next.

 

Project size

The size of a project, such as the square footage and number of floors, will influence the building permit cost.

 

Complexity 

Construction projects with unique features, and intricate designs that may require specialized construction techniques will need more reviews and inspections. In turn, it leads to higher building permit fees.

 

Differences in fee structures and categories of building permit fees

Every region across Ontario has a different building permit cost calculator. So, your building permit fees aren’t straightforward. Many different subcategories can influence how much you pay in the end. Here are the numerous fee categories charged by the Ontario Building Department.

 

New Construction vs Alterations

Are you adding a secondary suite or transforming your real estate property into a multiplex? New construction has different building permit fees for alterations. Alterations and additions may include plumbing work, mechanical additions, and more.

 

Sewer Assessment

If you consider adding a holding tank or septic system, this will influence your building permit cost. 

 

Mechanical permit fees

This may range from heating to ventilation, and air conditioning documentation is required for new construction and new home additions. In some special cases finishing the basement apartment may require HVAC designs to support. A thorough permit review. Knowing when to include or not to include these drawings and supporting documents are important.

 

Demolition 

Demolition is also a critical aspect of your building permit application and is often reviewed separately depending on the municipality. It also depends on whether you want to demolish a building or interior demolition floor. But a rule of thumb that applies always is if the demolition involves structural alteration a demolition permit will be required.

 

Plumbing and drainage permit fees

Plumbing and drainage systems also have different permits. These permits center around fixtures, equipment, roof drains and could include sanitary and storm piping, replacing or adding buried plumbing and drainage piping, and more.

 

Fast track service

Some municipalities offer fast-track permits If the extent of the permit design scope is not complex as is the case for a single family home remodel in Toronto. These Building permit application can be reviewed and processed within the matter of a couple of weeks.

 

Development charges

This can make or break a property development. All municipalities have additional development charges for new construction. While there is a trend of deferring or discounting the fees they often require before a permit can be issued. These charges cover the cost of public infrastructure improvements related to the project. And it can increase your project soft cost by a whopping 20%, so be sure to include this as part of your budget.

 

Zoning and planning approvals 

You might pay additional fees for zoning and planning pre consultation. These fees cover the costs of circulating document through the various departments. This cost often unnecessary unless you are planning a larger development.

 

Miscellaneous fees

Other fees may also apply. They include additional fees for numerous re-inspection, stop work orders and in cases a chief building official letter to revoke an issued building permit which can cost much in legal fee and time disputing the city claims.

Do also note that if construction begins before building permit issuance, you incur levies of about 50% on your permit. Some municipalities even make you pay double the permit fees.

 

Conclusion

Knowing your building permit cost in Ontario aids your construction budgeting. You need to evaluate what building permit fees affect your project. Consider how you can make that work while complying with regulations and building codes. The cost of permits varies depending on many factor, so speak with a professional or your local building department

Reduce the risks of delays, revisions, and re-inspections, by ensuring your building permit application is complete and accurate. This also helps you avoid any surprises and properly plan your project budget.

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About Property Pathways Inc.

Property Pathways Inc. is a Toronto-based SME company specializing in helping real estate investors convert properties into rental units in the Province of Ontario. We are known for getting building permits approved for clients transforming single family homes into multiplexes. This is only strengthened by the full engineering support offered on all projects.

The team of BCIN qualified practitioners boasts many years of experience, guiding real estate investors and homeowners through the property selection process. We do accomplish this by offering a free, site specific zoning bylaw review of a subject property, to determine the highest and best use. We provide a wide range of ancillary services including Feasibility Massing, COA, OLT, conservation and heritage representation. We also aid in the development of effective renovation planning as well as coaching and training for beginners.

What sets Property Pathways apart from other companies in our niche, is our use of digital, and 3D design technology during all touch points with clients. And our unwavering commitment to pioneering an exceptionally high quality customer service experience, is at the forefront of our day to day operation. Book a no obligation consultation today to review your property potential!

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