Tarion would like to thank all those who submitted feedback as part of the public consultation. Tarion will not proceed with the $250 temporary capital replenishment fee increase at this time in recognition of stakeholder feedback and will continue to focus on exploring other alternatives.
Instead, and following careful consideration of feedback received as part of our public consultation, Tarion is updating the enrolment fee schedule to reflect a fee adjustment in the amount of $55 per home, to address increase in claims costs due to inflation.
The enrolment fee is the per home fee charged to new home vendors and is Tarion’s principal source of revenue to finance the cost of administering Ontario’s new home warranty and protection program.
An update to the fee schedule is necessary to keep pace with inflation in response to the rising costs of construction and repairs resulting in the increased cost of claims. According to Statistics Canada, building construction price indexes have increased by 50% over the past five years and, prior to a small increase in 2024, over the last 25 years the annual growth rate of the enrolment fee has remained relatively unchanged, averaging only 2.6%.
The one-time enrolment fee supports the guarantee fund, which is used to backstop the builder warranty for new homebuyers in Ontario to seven years of protection with the most comprehensive per home coverage offered by programs of this kind anywhere in Canada, covering up to $400,000 as well as additional coverage for deposit and financial loss, delayed closing and occupancy, and condominium common elements.
The new average one-time fee will be $1,790 payable by the vendor for a new home, and on average would represent a 3.1% increase in enrolment fee for the average home priced at $800,000.
There will be no change in the enrolment fee for homes with sales price of $550,000 or below (approximately 14.4% of total homes enrolled annually) and, in addition, charitable homes built by not-for-profit organizations will continue to be exempt from the fee.
These changes will take effect September 1, 2025, and are outlined in the updated Registrar Bulletin 15.