Canada is a dream country for many people looking for a permanent move. However, building a home in Canada is a different ball game altogether. The cost to build a house in Canada will add to your expenses, including land purchase, multiple inspections, and permitting process. Build-able lots in urban regions could be highly expensive. Cost to build a home may also be more challenging if you lack real estate and construction knowledge.

But don’t worry. In this article, we will tell you all the details you need to know about home construction in Canada, as well as its average budget.

How Much Does it Cost to Build a House Cost in Canada?

Home Cost in Canada

The average cost to build a home in Canada ranges from CA $120 to CA $195 per square foot for a detached house. Apart from building resources, material and labour expenses, the cost of constructing a home largely depends on the type of home you are trying to build.

And, so that you can create an effective home construction budget, here are the average costs of building a single-family home and a custom-built single-family home in major provinces across Canada.

City Single-Family Home Custom-Built Single-Family Home
Vancouver CA $145 – CA $260 CA $430 – CA $1090
Calgary CA $125 – CA $185 CA $405 – CA $860
Edmonton CA $130 – CA $185 CA $405 – CA $860
Winnipeg CA $125 – CA $190 CA $410 – CA $860
Toronto/GTA CA $115 – CA $215 CA c$400 – CA $900
Ottawa/Gatineau CA $120 – CA $195 CA $435 – CA $910
Montreal CA $105 – CA $180 CA $390 – CA $800
Halifax CA $90 – CA $150 CA $250 – CA $500

Mortgage To Build A House In Canada

Build A House In Canada

Apart from property purchases, mortgages are also provided for home construction in Canada. However, if you need a mortgage to purchase vacant land, you will have to pay a higher interest rate.

To lessen your mortgage EMI burdens and interest rates, pay a larger down payment between 25–30%. You can use your construction mortgage to cover the building expenses. The mortgage interest rates vary from lender to lender, so it is good to take advice from experts and go for only the best lenders in the market.

There are majorly 2 types of construction mortgages:

  • Completion Mortgage: In this type of mortgage, the amount isn’t transferred until the construction work is complete.
  • Progress-Draw or Draw Mortgage: It is more flexible than the completion mortgage as a draw mortgage allows you to draw the amount in increments as the house construction proceeds. This type of mortgage is also known as progress-draw.

However, before taking any decision, it is advisable that you speak in detail with your bank or mortgage broker to make an informed decision.

How Long Does It Take to Build a House in Canada?

It can be tricky to estimate the time taken for a house as various factors like worker availability, weather, etc., come to play. However, on average a house construction in Canada takes 10 to 16 months if everything goes as planned.

5 Ways to Reduce the Average Cost of Building a House

Average Cost of Building a Home

The benefit of building your home instead of buying one is that, here, you get the opportunity to reduce the building costs of the house. Let’s check how you can save some extra cash when building your home in Canada.

Take Bids

Do good research and bid on the project with the best contractor you consider. But while searching for the best builder, don’t forget that the cheapest builder is not always the best. There could be many reasons why the contractor closing the deal is low, for instance, they might delay the deadline or cut corners on quality.

Design a Smaller Home

The smaller the home is, the less it will cost. As per real estate experts, the materials used to build a large home is the same as that of a small home. The only difference is that the portion of materials used decreases for small home construction. This helps a lot to lower the overall budget.

In fact, it is because of this reason that many aspiring to have their own property go for constructing tiny houses. With minimal area and functional interiors, these homes not only prove to be cost-effective but aesthetic, stylish, and eco-friendly.

Do It Yourself (DIY)

DIY is one of the most delightful ways you can cut down on your home building costs. From structure to decor, you can do it all yourself with the right resources. And since you are literally getting your hands dirty when building your home, the entire experience becomes more personal and special.

Save your labour expenses by doing some of the work yourself, like fixing lights or making and repairing doors and windows if you are good with woodwork. You can also install flooring or kitchen cabinets when all the plumbing and drywall is done.

What’s more fun? You can refurbish some of your old decor items on your own. Get crafty one weekend and do some murals or transform any old furniture into a new one. Create art and frame it on the wall for all to see. Use long old fabrics like curtains or sew them into stylish cushion covers. DIY ideas for interiors and decor are simply endless.

Go for Recycled Items

There is a lot that you can count under recycled or reclaimed items. They are eco-friendly and can also save a lot of money. There are several salvage shops and yards as well as charitable firms where you can find everything, from windows, doors, and bathroom vanities to kitchen cabinets for your home.

Do Not Skip On Important Details

Pay attention to the important details in home construction, like proper insulation, drainage, roofing, flooring, etc. When all these are functional in the house, it will save you the repair costs later on.

In a Nutshell

Although building a new home in Canada can prove to be affordable, it comes with its fair share of challenges. But no need not worry, as this guide is here to help you with the average construction cost of a house. Keep in mind the above suggestions to build your house in Canada on a low budget, hassle-free. You can also get in touch with trusted real estate experts for further assistance.


How much does it cost to build a house in Canada?

The average building cost to construct a new house in Canada’s major cities extends from CA $90 to CA $265 per square foot. Also, the cost depends on two major factors of location and materials.

Is it cheaper to build or buy a house in Canada?

A custom-built home is considerably more expensive than a single-family home. It costs CA $430 to CA $1,090 per square foot on average in Vancouver and CA $390 to CA $800 per square foot in Montreal. As per 2020 home building reports, constructing a new home in Canada would be the cheapest in Halifax.

How much does it cost to build a house in 2021?

As per real estate experts, the average cost to build a house on the global front in 2021 is CA $298,432. A typical range falls between CA $154,185 and CA $477,534.

How much does it cost to build a house in Ontario?

The average cost to build a house in Ontario ranges between CA $240 and CA $300 per square foot, depending on the property location and type. The price to build a house in the Greater Toronto region falls between CA $250 and CA $300 per sq. ft. As of 2021, the average building cost of a house in Ottawa ranges from CA $235 to CA $375 per sq. ft.