For new homes, the vendor or builder pays the warranty enrolment fee to Tarion and is payable as a term and condition of an Enrolment Confirmation. For freehold homes the fee is payable on or before the date the building permit for the home is issued. For condominium projects the fee is payable at least 30 days before construction begins.
The warranty enrolment fee is the primary source of funding for the administration of the New Home Warranty Program by Tarion. It is this program that entitles new home buyers in Ontario to receive warranty coverage of up to $300,000 for homes and condo units in the event there is a warranted problem and the builder is unwilling or unable to resolve it. The enrolment fee supports the operating costs of Tarion (including claims administration, public education, builder education, and targeted inspection programs) as well as ensuring that the warranty compensation fund (known as the Guarantee Fund) is stable to meet its future warranty obligations and manage catastrophic claim events. Tarion is a not-for-profit organization and any surplus revenue arising from enrolment fees stays in the Guarantee Fund and is only used to support the ongoing operation of the warranty program, enhancement of future warranty coverages, and/or be available for the benefit of protecting Ontario homebuyers from future losses from claims.
The warranty enrolment fee is based on a scale related to the sale price of homes and condominiums. Check the price range on the table below to find out the applicable warranty fee for a particular home.
Once an owner takes possession of a home the builder must provide the final sale price to Tarion and the applicable enrolment fee may be adjusted by Tarion.
Enrolment Fee Calculation Table (Effective February 1, 2021)
Tarion Warranty Enrolment Fees for All Homes (Freehold and Condominium Units*)
(Please Note: The Tarion Enrolment Fee is considered a taxable supply under the Excise Tax Act: Tarion HST #: 12154 6931 RT0001.)
|Sale Price** Range (Excluding HST)||Tarion Enrolment Fee ($)||13% HST||Total (Fee + HST)|
|0 to $100,000||330||42.90||372.90|
|$100,000.01 - $150,000.00||375||48.75||423.75|
|$150,000.01 - $200,000||445||57.85||502.85|
|$200,000.01 - $250,000.00||515||66.95||581.95|
|$250,000.01 - $300,000.00||585||76.05||661.05|
|$300,000.01 - $350,000.00||655||81.15||740.15|
|$350,000.01 - $400,000.00||725||94.25||819.25|
|$400,000.01 - $450,000.00||815||105.95||920.95|
|$450,000.01 - $500,000.00||890||115.70||1,005.70|
|$500,000.01 - $550,000.00||970||126.10||1,096.10|
|$550,000.00 - $600,000.00||1,020||132.60||1,152.60|
|$600,000.01 - $650,000.00||1,075||139.75||1,214.75|
|$650,000.00 - $700,000.00||1,155||150.15||1,305.15|
|$700,000.01 - $750,000.00||1,205||156.65||1.361.65|
|$750,000.01 - $800,000.00||1,260||163.80||1,423.80|
|$800,000.01 - $850,000.00||1,310||170.30||1,480.30|
|$850,000.01 - $900,000.00||1,430||185.90||1,615.90|
|$900,000.01 - $950,000.00||1,485||193.05||1,678.05|
|$950,000.01 - $1,000,000.00||1,540||200.20||1,740.20|
|$1,000,000.01 - $1,500,000.00||1,670||217.10||1,887.10|
|$1,500,000.01 or more||1,745||226.85||1,971.85|
* Note that condominium units in a residential condominium conversion project will have an enrolment fee which is two times the fee noted in the last column.
** Sale Price refers to the total amount (value of consideration) payable by an owner in an agreement of purchase and sale or construction contract, including (without limitation) the value of upgrades, extras and other consideration paid for the home including appurtenances used in conjunction with the residential dwelling (e.g., garages for single homes or parking spaces and storage lockers for condominiums). For clarity, Sale Price does not include any applicable taxes.