What should a new-construction closing budget include?
Start with the lawyer’s estimate and the actual agreement. Organise applicable transfer taxes, legal fees and disbursements, contract charges, utility and closing adjustments, moving costs and a separately identified contingency. Record whether each amount is included, already paid or still expected. There is no single cost list or percentage that settles every Canadian purchase.
Keep the remaining purchase-price balance in a separate calculation. The Pre-Construction Buyer Kit closing budget adds user-entered additional costs; it does not calculate tax rates or rebate eligibility and does not include the remaining purchase price in that total.
Use a category, amount, source and status
| Category | Question to confirm |
|---|---|
| Land/property transfer tax | What applies in this province and municipality, and is any relief confirmed? |
| Legal fees and disbursements | What is covered by the estimate, and what is additional? |
| Warranty-related amount, if payable | Is it included, already paid or charged under this agreement? |
| Development charges and levies | What can be charged to this buyer under the contract? |
| Utilities and adjustments | Which amounts appear in the expected closing statement? |
| Tax or rebate shortfall | What has the lawyer/accountant confirmed for this buyer? |
| Moving and contingency | What practical costs are being planned, and what remains uncertain? |
A Toronto municipal land transfer tax row is not a national municipal tax assumption. Leave non-applicable rows blank and record other local amounts only after confirming them. A blank estimate should be labelled unknown rather than treated as a confirmed zero.
Do not assume GST/HST and the rebate cancel each other out
Ask how the agreement states the price: tax included, net of an assumed rebate or tax additional. The CRA new housing rebate page describes eligibility conditions; a headline price does not establish that a particular purchaser qualifies. Ask who applies, who receives a credit and what happens if the expected rebate is unavailable.
The standard Ontario provincial up-to-$24,000 reference is not a universal 2026 maximum. CRA also describes a temporary enhanced Ontario rebate with its own conditions and dates, as well as other measures. Have the actual purchase checked by the lawyer and accountant. This article and the kit do not decide eligibility or compute a refund.
For an assignment, obtain advice on the actual tax treatment before treating a proposed price as the full cost. Section 192.1 of the Excise Tax Act addresses specified residential assignment supplies. Record the advice and its scope; do not turn a generic explanation into a tax conclusion.
Check the contract treatment of development charges
A description such as “capped charges” needs a document reference. Ask which category is capped, what the cap covers, whether tax is included and whether other adjustments remain possible. A municipal policy limit does not by itself establish the buyer’s contractual maximum.
Use a written source for the figure you enter. If it is an estimate rather than a confirmed charge, label it that way. Ask the lawyer to review the relevant clauses and explain any exposure that remains open. A contingency is useful planning, but it does not amend a contractual obligation.
Avoid double counting money already paid
The purchase-price calculation and the additional-cost budget should reconcile without counting the same payment twice. Review deposits, upgrades and any earlier fees against receipts and the expected closing statement. Keep both the amount and the treatment visible.
For example, a deposit that reduces the balance is not automatically a new additional closing cost. Conversely, a separately charged adjustment is not necessarily covered by the deposit total. The lawyer’s closing statement resolves the actual cash requirement; a planner organises the questions leading up to it.
Use the fictional deposit example to understand the remaining balance, and keep interim occupancy estimates separately labelled when applicable.
Update the budget when the evidence changes
Give each uncertain item an owner and a follow-up date. Replace an estimate when a verified statement becomes available, and retain a reference explaining the change. Before sharing a final planning copy, check that non-applicable items, known zeros and outstanding estimates can be distinguished.
The editable kit has a separate closing-cost workbook and an upgrade planner. They do not automatically sync. The four workbooks calculate entered figures; they do not retrieve new tax rates, monitor the project or replace professional closing advice.