Questions to ask a contractor in Ontario before you sign

Before you sign with a renovation contractor in Ontario, ask who files the building permit, whether you need a Workplace Safety and Insurance Board (WSIB) clearance certificate, for proof of liability insurance, and for a written contract with a deposit of no more than 10%. As of October 2026, those checks come from the province's consumer guidance, WSIB policy and the Construction Act. The Act also requires you to hold back 10% of each payment until liens expire (Ontario, your rights when starting home renovations; Construction Act s. 22(1)).

Key takeaways

• Any home renovation contract worth more than $50 must be in writing in Ontario, and one signed in your home carries a 10 calendar-day cooling-off period, as of October 2026 (Ontario's renovation rights page).
• Ontario recommends a deposit of no more than 10%, and the final price can't run more than 10% over the estimate unless you agree to new work or a new price (Ontario's renovation rights page).
• A WSIB clearance certificate lasts up to 90 days, and homeowners hiring a contractor only for exempt home renovation work don't need one (WSIB clearance certificate policy).
• Only licensed electrical contractors may do electrical work in your home, and each has a 7-digit licence number you can check (Electrical Safety Authority guidance).
• You hold back 10% of the value of work supplied, and a contractor's lien expires 60 days after the earlier of publication of substantial performance or the contract ending (Construction Act ss. 22(1) and 31(2)).
• Ontario tells you to get at least 3 written estimates and at least 3 references, and to check them (Ontario's renovation rights page).

Who pulls the building permit, you or the contractor?

Legally it's you, but the contractor or designer usually files as your agent. Ontario says "It's your responsibility to get building permits" (Ontario's renovation rights page). The Building Code lets the owner or an authorized agent make the application (Div. C 1.3.1.3.(5), 2024 Building Code Compendium).

So ask: who files, who pays the fee, and who books the inspections? A good answer names a person and a step. A contractor who suggests skipping the permit is handing you the risk. In Whitby, in Durham Region, Ontario, applications go through the Town's E-Portal at portal.whitby.ca (Town of Whitby, building permits), and starting work before you apply costs the greater of $100 or 25% of the application fee (Whitby's 2026 Schedule N). Oshawa and Clarington add 25% to the permit fee if construction starts after you've applied but before the permit is issued, and 50% if it starts with no application at all (Oshawa fee by-law; Clarington fee by-law).

Do they have WSIB coverage, and do you need a clearance certificate?

People who own or run a construction business in Ontario must have WSIB coverage, with some exceptions (WSIB coverage rules for construction). The exception that matters here is home renovation. An owner-operator doing only home renovation work directly for the person who lives in the house is exempt for themselves, but not for their workers or their subcontractors (WSIB Policy 12-01-06).

The clearance certificate is the other half. Under WSIB policy, a principal who directly hires a construction contractor must get a clearance certificate, which lasts up to 90 days. Homeowners hiring a contractor only for exempt home renovation work are excluded from that rule. Without one, a principal who needed it may be liable for the contractor's unpaid premiums up to the labour portion of the contract (WSIB Policy 14-02-19).

Ask for the WSIB account and a current clearance certificate. If the contractor says the exemption covers them, ask who else will be on site. Their crew and their sub-trades should be covered either way. If you're not sure whether your job counts as exempt home renovation work, call WSIB before you sign.

Do they carry liability insurance?

Ask for a certificate of insurance, not a verbal yes. We won't suggest a coverage amount, because we haven't found an Ontario rule that sets one for renovators. Read the certificate for the insurer, the policy number, the coverage limit and the expiry date. Then call the broker on it to confirm it's in force. Ontario's renovation rights page doesn't set an insurance rule, so this is a check you run yourself.

Does the contractor need a licence?

Not for renovations. The Home Construction Regulatory Authority (HCRA) says "all new home builders and sellers" must be licensed, and that renovations to an existing home typically don't make it new (HCRA licence page). It also says renovators "aren't licensed or regulated like new home builders" (HCRA page on finding a renovator). The exception: coach, laneway and tiny homes generally need licensing and warranty coverage, so a detached garden suite is a different question. Our HCRA and Tarion guide covers it.

Trades are different. Ask who does the electrical and the gas work, by name:

• Electrical: only Licensed Electrical Contractors may do electrical work in your home, each has a 7-digit licence number from the Electrical Safety Authority (ESA) and the Electrical Contractor Registration Agency (ECRA), and a notification of work must be filed before work starts (ESA guidance).
• Gas: gas work falls under O. Reg. 212/01, which calls for contractors registered with the Technical Standards and Safety Authority (TSSA) and certified gas technicians (O. Reg. 212/01).

Here are the questions to ask, what a good answer sounds like, and where to check it:

Note: This is a starting checklist, not a full vetting process; a good answer still has to match the paperwork.

What should the contract say before you sign?

It must be in writing for anything over $50. Ontario says it should list the contractor's name, address and contact details. It should also give a thorough description of the work, any warranties, the total cost and payment terms, start and completion dates, the payment schedule and deposit, who cleans up, and all the sub-trades (Ontario's renovation rights page).

The same page recommends no more than a 10% deposit, warns you to "avoid cash deals", and points you to the Consumer Beware List to look up complaints or charges. If you sign in your home, you have 10 calendar days to cancel for any reason without a fee. The final price can't run more than 10% over the estimate unless you agree to new work or a new price, so ask how changes get priced and signed. Our fixed price vs cost-plus guide goes deeper on that.

How will payments and the holdback work?

Ask for a payment schedule tied to stages you can see, and tell the contractor up front that you'll hold back 10%. Section 22(1) of the Construction Act requires it. Section 24(1) lets you pay up to 90% safely unless you get written notice of a lien. Section 31(2) ends a contractor's lien rights 60 days after the earlier of publication of substantial performance or the contract being completed, abandoned or terminated.

The reason to care is in the news. In July 2026, the Toronto news channel CP24 reported a Brampton owner who paid $33,000, about 90% of the contract, for a basement apartment left unfinished. A poll by CTV News and the research firm Nanos in the same report found 26.7% of Canadians had experienced, or knew someone who had, unfinished renovation work after payment (CP24, 9 July 2026). A forum reply on a similar story put it bluntly: "never pay more than 100 for deposit!" (RedFlagDeals, 2020). That's stricter than the province, but the instinct is right.

Here are the numbers to have in front of you when you sign:

Note: These are the rules as published in October 2026; they're not legal advice, and a lawyer should read the contract on a large job.

How we work

We're a family design-build firm in Ajax. Ceara Jarvis leads design through her studio, Juliette Interiors, we draw permit drawings in-house, and James Jarvis runs construction, under one contract. Ask us every question on this page; we'd rather you check than assume. The steps are on our design-build page, and the design-build vs an architect plus a general contractor guide explains when the other route fits better. The nearest finished job with a full write-up is Greenwood, a rear extension and new top storey in east Toronto, roughly 30 km west of our Ajax office. When you're ready, get in touch.

Questions

Who is responsible for getting the building permit for a renovation in Ontario?

The homeowner is responsible for building permits in Ontario as of October 2026, according to the province's renovation rights guidance. The Building Code lets an authorized agent, such as your contractor or designer, file the application for you.

Agree in writing who files, who pays the fee and who books inspections. In Whitby, starting work before applying costs the greater of $100 or 25% of the application fee.

Does my contractor need a WSIB clearance certificate for a home renovation?

Under WSIB policy, a principal who directly hires a construction contractor must get a clearance certificate, valid up to 90 days, but homeowners hiring a contractor only for exempt home renovation work are excluded. The exemption covers owner-operators working directly for the person who lives in the house, not their workers or subcontractors.

Ask the contractor for their WSIB account and clearance anyway, and call WSIB if you're unsure whether your job is exempt.

Do renovation contractors need a licence in Ontario?

Renovation contractors in Ontario aren't licensed by the Home Construction Regulatory Authority, which licenses new home builders and sellers. Renovating an existing house typically doesn't make it a new home, though coach, laneway and tiny homes generally do need licensing.

Specific trades still need their own credentials: electrical work needs a Licensed Electrical Contractor, and gas work needs a TSSA-registered contractor.

How much deposit should I give a contractor in Ontario?

Ontario recommends a renovation deposit of no more than 10% of the contract, as of October 2026, and warns against large down payments to cover materials. After the deposit, pay in stages tied to finished work.

Hold back 10% of each payment as the Construction Act requires, and release it once the lien period has passed.

Can I cancel a renovation contract in Ontario after signing?

If you signed a home renovation contract worth $50 or more in your home, Ontario gives you a 10 calendar-day cooling-off period to cancel for any reason, without a cancellation fee. The right applies to contracts signed at home, as of October 2026.

Ontario's page ties the right to contracts signed in your home, so if you sign anywhere else, don't count on it and read the contract first.

How many quotes should I get for a renovation in Ontario?

Ontario recommends at least 3 written estimates from different contractors for a home renovation, and at least 3 references you actually check. Comparing quotes is easier when every contractor prices the same drawings and scope.

Compare allowances, exclusions and payment schedules line by line, not just the total.

Sources

1. Ontario, your rights when starting home renovations ontario.ca
2. Construction Act s. 22(1) ontario.ca
3. WSIB clearance certificate policy wsib.ca
4. Electrical Safety Authority guidance esasafe.com
5. 2024 Building Code Compendium publications.gov.on.ca
6. Town of Whitby, building permits whitby.ca
7. Whitby's 2026 Schedule N media-003-ca.cdn.govstack.com
8. Oshawa fee by-law media-002-ca.cdn.govstack.com
9. Clarington fee by-law weblink.clarington.net
10. WSIB coverage rules for construction wsib.ca
11. WSIB Policy 12-01-06 wsib.ca
12. HCRA licence page hcraontario.ca
13. HCRA page on finding a renovator hcraontario.ca
14. O. Reg. 212/01 ontario.ca
15. CP24, 9 July 2026 cp24.com
16. RedFlagDeals, 2020 forums.redflagdeals.com