---
title: "How to Create a Realistic Renovation Budget in Ontario"
url: "https://www.jarviscontracting.ca/post/how-to-create-a-realistic-renovation-budget-in-2026"
description: "The lines Ontario renovation budgets miss: permit drawings and what they leave out, Whitby and Oshawa permit fees, 13% HST and a contingency for the walls."
publisher: "Jarvis Contracting"
dateModified: "2026-10-13"
---
# How to Create a Realistic Renovation Budget in Ontario

By Jarvis Contracting. Published 2026-10-04, updated 2026-10-13.

A realistic renovation budget in Ontario is the construction price plus the lines most quotes leave out: drawings, engineering, the permit fee, 13% HST and a contingency. Our permit drawings for an addition run $6,000 to $12,000 in 2026. That price leaves out permit fees, HVAC engineering, truss design, committee of adjustment applications and anything unforeseen, so each needs a line of its own. Build the budget from those lines first, then fit the design to it, not the other way round.

## Key takeaways

- Our 2026 price for permit drawings is $6,000 to $12,000 for an addition and $4,000 to $8,000 for a basement apartment. It leaves out permit fees, HVAC engineering, truss design, committee of adjustment applications and anything unforeseen.
- A 1,000 sq ft addition pays about $2,078 in permit fees in Whitby at $22.37 per m² under the [Town's 2026 fee schedule](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf), and about $1,446 in Oshawa at $15.56 per m² under [By-law 33-2009](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/em3h4lr3/bylaw-33-2009-as-amended-by-by-law-118-2025.pdf).
- Our 2026 range for a 600 to 1,200 sq ft second storey is $300,000 to $800,000 before HST, and work on the floor below, like a kitchen or bathrooms, adds to it.
- HST in Ontario is 13%, made up of the [5% federal portion](https://www.ontario.ca/page/ontario-new-home-affordability-payment) and the [8% provincial portion](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html), and most published price ranges, ours included, are before it.
- Under Ontario's consumer protection rules, the final price can't exceed a written estimate by more than 10% unless you agree to changes, according to the province's [renovation rights page](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs) (updated 6 August 2026).

## What goes in a renovation budget besides construction?

Construction is the biggest line, but it isn't the whole budget. Before a crew shows up you pay for design, permit drawings, structural engineering and the permit. During the job you pay HST on almost all of it. And you carry a contingency for what the walls hide.

These are the lines we see left off most often, with our own 2026 prices and the towns' fees:

| Line item | 2026 figure | Basis |
|---|---|---|
| Permit drawings, addition | $6,000 to $12,000 | Our price |
| Permit drawings, basement apartment | $4,000 to $8,000 | Our price |
| Permit drawings, garden suite | $5,000 to $15,000 | Our price |
| Minor variance, residential lot | $1,526 in Whitby, $856 per lot in Oshawa | [Whitby](https://media-003-ca.cdn.govstack.com/whitby-ca/media/txxlnw3w/pl-application_minorvariance.pdf) and [Oshawa](https://www.oshawa.ca/business-development/planning-and-development/development-applications/committee-of-adjustment/) |
| Building permit, addition, Whitby | $22.37 per m² | [Town of Whitby 2026 fee schedule](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf) |
| Building permit, addition, Oshawa | $15.56 per m² | [Oshawa fee by-law](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/em3h4lr3/bylaw-33-2009-as-amended-by-by-law-118-2025.pdf) |
| HST | 13% | [Ontario](https://www.ontario.ca/page/ontario-new-home-affordability-payment) and [CRA](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html) |

Note: the drawing prices are ours for 2026 and cover drawings only. Permit fees, HVAC engineering, truss design, committee of adjustment applications and anything unforeseen are extra. The permit and variance fees are the towns' own 2026 schedules, and none of these figures includes HST.

Two more lines don't fit a table: where you live while the roof is off, and the old panel, furnace or drain that shows up once the walls are open. Name both before anyone signs.

## Why do renovation quotes for the same job differ so much?

Quotes differ mostly because they price different jobs. One owner on RedFlagDeals posted general contractor quotes of $380,000 to $397,000 for an addition, against $242,000 to manage the build themselves, and the GC quotes [carried no contingency](https://forums.redflagdeals.com/addition-estimates-all-over-place-updated-my-experience-getting-addition-2154634/11/) (forum post, read from a search snippet). Another owner of a 1,300 sq ft bungalow got a [$280,000 second-storey quote that left out the main floor](https://forums.redflagdeals.com/adding-storey-real-costs-1975637/), and reckoned another $80,000 to $100,000 would bring it to $400,000 to $450,000.

That second story is the common one. A second storey needs a new stair, often a steel beam where a bearing wall comes out, ductwork run up through the main floor, and patching wherever the trades opened a wall. Some quotes price all of that, and some price only the box on top.

So before you compare totals, compare scope. Lay the quotes side by side and check each one for the main floor, the permit and drawings, the exterior (siding, roofing, eavestroughs), the basement, HST and contingency. If one quote is $100,000 lower, find the $100,000 it left out. Our guide to [fixed price and cost-plus contracts](https://www.jarviscontracting.ca/guides/fixed-price-vs-cost-plus) covers how the contract type changes what a quote promises.

## Allowances or fixed selections?

An allowance is a placeholder: a dollar figure in the contract for something you haven't picked yet, like cabinets, tile, plumbing fixtures or flooring. If your pick costs more, you pay the difference. The RedFlagDeals owner above went over their own budget on cabinets, which is the usual way allowances bite.

Allowances let a job get priced before every finish is chosen, which is useful. The trouble starts when an allowance is set low to make a quote look cheap. Ask what each allowance would buy, and pick the big items (cabinets, windows, flooring) before the price is fixed, so they're numbers rather than guesses.

## How much contingency should you carry?

Size the contingency to the house, not to a rule of thumb. We'd carry more for an older house, a job that opens a lot of existing structure, or anything touching the foundation.

Contingency pays for what nobody could see: rot under a bathroom floor, knob-and-tube wiring in a wall you meant to keep, a footing that needs work before it carries a second floor. Upgrades you choose halfway through, like a bigger window, are change orders with their own price, and they come from a different pot.

Ontario puts two limits on contractors that help here. The final price can't exceed a written estimate by more than 10% without your agreement to changes, and the province recommends a deposit of no more than 10%, both on its [renovation rights page](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs) (updated 6 August 2026). Our [payment schedule guide](https://www.jarviscontracting.ca/post/home-renovation-payment-schedule-ontario-guide) shows how to tie the rest of the money to work you can see.

## Which decisions should be made before the permit?

Make the decisions that move walls, pipes or structure before the permit drawings are finished. That means the layout, where the plumbing stack runs, window sizes and locations, which walls come out and what holds the load once they're gone, and whether the main floor is part of the job.

Each of those is on the permit drawings. Change one after the permit is issued and you're back at the drawing table, then back at the building department for a permit amendment, while the crew waits. Paint colours and tile can wait; structure has to be settled first.

Starting work early to save time costs money too. Whitby's fee schedule adds a charge of the greater of $100 or 25% of the application fee for [work started before a permit application](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf), and Oshawa adds 25% or 50% of the permit fee under [By-law 33-2009](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/em3h4lr3/bylaw-33-2009-as-amended-by-by-law-118-2025.pdf).

## Putting the lines together: a second storey in Whitby

Here is how those lines stack up for a second storey in Whitby, using our 2026 prices and the Town's 2026 fees. It shows the method, not a price for your house:

| Line | 2026 figure | Basis |
|---|---|---|
| Construction, 600 to 1,200 sq ft second storey | $300,000 to $800,000 | Our range |
| Work on the floor below (kitchen, bathrooms) | Adds to the line above | Priced with the job |
| Permit drawings for an addition | $6,000 to $12,000 | Our price |
| HVAC engineering and truss design | Not in the drawing price | Its own line |
| Whitby permit fee, new floor area | $22.37 per m² | [Town of Whitby 2026 fee schedule](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf) |
| Minor variance, if the height needs one | $1,526 | [Town of Whitby application form](https://media-003-ca.cdn.govstack.com/whitby-ca/media/txxlnw3w/pl-application_minorvariance.pdf) |
| Contingency | Sized to the house | See above |
| HST | 13% | [Ontario](https://www.ontario.ca/page/ontario-new-home-affordability-payment) and [CRA](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html) |

Note: our ranges are before 13% HST and aren't a quote; James prices the whole job in writing, at a fixed price, before design starts. The drawing price leaves out permit fees, HVAC engineering, truss design, committee of adjustment applications and anything unforeseen, which is why those have rows of their own. The town's fee schedule lists no HST on the permit fee, so HST applies to everything else.

The construction line is the biggest, but the money you need in the bank is that line plus every row under it. For more on what drives the construction line, see our [second-storey cost guide](https://www.jarviscontracting.ca/guides/second-storey-addition-cost-ontario) and [home addition cost guide](https://www.jarviscontracting.ca/guides/home-addition-cost-ontario).

## What's different about budgeting in Durham Region?

Your town sets the permit fee and the zoning, and the conservation authority may want its own permit. Whitby and Oshawa sit side by side and still differ, as of October 2026:

- **Permit fees.** Whitby charges $22.37 per m² for additions and $10.65 per m² for alterations, with a $305 minimum ([2026 schedule](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf)). Oshawa charges $15.56 per m² for additions, $7.79 per m² for a finished basement, and a $160 minimum ([By-law 33-2009](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/em3h4lr3/bylaw-33-2009-as-amended-by-by-law-118-2025.pdf)).
- **Minor variances.** If the addition breaks a zoning limit, the Committee of Adjustment hears it first. The application fee is $1,526 for a residential lot in [Whitby](https://media-003-ca.cdn.govstack.com/whitby-ca/media/txxlnw3w/pl-application_minorvariance.pdf) and $856 per lot in [Oshawa](https://www.oshawa.ca/business-development/planning-and-development/development-applications/committee-of-adjustment/). Whitby's [Zoning By-law 1784](https://media-003-ca.cdn.govstack.com/whitby-ca/media/orfb0rfx/1784_zoning-by-law_2025_consolidation-accessible.pdf) sets an 8.5 m height limit in its R1 to R3 zones; Oshawa's [Zoning By-law 60-94](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/xrthfhqx/zoning-by-law-60-94.pdf) allows 9.0 m in R1-A to R1-E. A tall second storey can run into those limits.
- **CLOCA.** Both towns sit in the Central Lake Ontario Conservation Authority's area. Near a creek, wetland or the lake shore, an addition needs a CLOCA permit as well: $535 for a Minor Permit B, or $1,990 plus $3,640 per technical report for a Standard Permit C ([CLOCA 2026 fees](https://www.cloca.com/_files/ugd/6cdd05_ca1ea5bbdaa34f3ca770f69ab8f830e4.pdf)).
- **Development charges.** These don't apply to an addition. Enlarging an existing home doesn't trigger them under the [Development Charges Act](https://www.ontario.ca/laws/statute/97d27), so the $76,227 [regional charge](https://media-003-ca.cdn.govstack.com/durham-ca/media/vybhyyp2/durham-region-wide-development-charge-information-jul-1-2026.pdf) on a new house in Durham Region stays off your budget.

## How we build a budget with you

We start with a visit. James comes to the house, looks at the structure, the panel, the basement and the lot, and talks through what you want and what you want to spend, then gives you a rough estimate on the spot. If it works for you, he prices the whole job in a detailed proposal, and you sign the contract before design starts. Then Ceara Jarvis and her studio, Juliette Interiors, design the space and draw it, and a licensed engineer stamps the structure.

James's proposals are detailed, so the price rarely moves; if a design selection or a finish changes it, the change goes through a change order you sign. Then we apply for the permit, build with one crew, book the town's inspections as each stage is ready, and hand the house back.

We're writing up our projects as case studies now; the first is on our [projects page](https://www.jarviscontracting.ca/projects). [Greenwood](https://www.jarviscontracting.ca/projects/greenwood) was a ten-month renovation in Toronto that we took through design, permit and construction. Our [pricing page](https://www.jarviscontracting.ca/pricing) explains how we price, and [design-build](https://www.jarviscontracting.ca/design-build) explains why one team carrying design and price keeps the budget honest.

## Questions

### How much contingency should I add to a renovation budget in Ontario?

There's no single right percentage for a renovation contingency in Ontario: size it to the house. Carry more for an older house, foundation work, or a job that opens a lot of existing walls.

A renovation contingency covers hidden conditions, like rot, old wiring or a footing that needs work. Keep it separate from upgrades you choose along the way, which should be priced as change orders.

### Do renovation quotes in Ontario include HST?

Many renovation quotes and published price ranges in Ontario are before HST, so check. HST is 13%: the 5% federal portion plus the 8% provincial portion.

On a $300,000 renovation that is $39,000 of tax. Ask every contractor to show HST as its own line so you can compare quotes on the same basis.

### Can a contractor charge more than the estimate in Ontario?

Under Ontario's consumer protection rules, a contractor can't charge more than 10% above a written estimate unless you agree to changes. The province's renovation rights page, updated 6 August 2026, also says contracts over $50 must be in writing.

### How much are building permit fees for an addition in Whitby?

The Town of Whitby charges $22.37 per square metre for residential additions under its fee schedule effective 1 January 2026, with a $305 minimum. A 1,000 sq ft addition (about 92.9 m²) comes to about $2,078. Oshawa's rate for additions is lower, at $15.56 per square metre.

### Should I get drawings before I ask for quotes?

Getting drawings before quotes is what makes quotes comparable. Without drawings, each contractor prices their own idea of the job, and the totals can't be compared line by line.

Our permit drawings for an addition run $6,000 to $12,000 in 2026. That's drawings only: permit fees, HVAC engineering, truss design, committee of adjustment applications and anything unforeseen are extra. A design-build firm does the drawings and the price together, so the design is priced as it's drawn.

### What should I do if my renovation plans come in over budget?

If renovation plans come in over budget, cut scope on paper before the permit, not on site after it. Simplify the roof line, keep plumbing where it is, phase the finishes, or leave a room for later.

The worst cut is the contingency. Taking it out makes the number fit today and guarantees a problem later.

If you'd like a budget built around your house, [get in touch](https://www.jarviscontracting.ca/contact).