Blog > Buying New vs. Resale in Markham: A 2026 Cost Comparison
Is it cheaper to buy new or resale in Markham?
A resale home is usually cheaper to buy today, and a new home is usually cheaper to own for the first few years. In the Greater Toronto Area, unsold new condos averaged about $1,186 per square foot in the second quarter of 2026 against about $830 for resale units in recently built buildings, a record gap of about 43%. New homes also add closing adjustments such as the Tarion enrolment fee and utility charges, which only apply if they are listed in the builder's agreement. On the other side, an eligible first-time buyer can receive up to $50,000 federal and up to $80,000 Ontario in HST relief on a qualifying new home. That relief does not apply to resale.
Why the Answer Changed in 2026
Two things shifted this year. First, the price gap between new and resale condos widened to a record, because builders' costs are locked in from years ago while resale prices have come down. Second, government charges on new homes started to fall. Markham's development charges for a single or semi-detached home dropped to $172,307 on 1 July 2026, from $179,391 in January, and York Region's new development charge bylaw, approved in May 2026, cut residential rates for the first time in 55 years.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, walks buyers through the same comparison every time: the purchase price, the closing costs, the first five years of ownership, and the risk of each path. The cheapest option on day one is not always the cheapest option overall.
Where the Market Stands
| GTA new homes, July 2026 (BILD and Altus Group) | Figure |
|---|---|
| Total new home sales | 1,018, about 40% below the 10-year average |
| Single-family sales | 781, about 50% above the 10-year average |
| Single-family benchmark price | $1,362,433, down 8.5% from a year earlier |
| Condo sales | 237, about 80% below the 10-year average |
| Condo benchmark price | $1,054,938, up 2.5% from a year earlier |
The split matters. New single-family homes are selling and their prices have come down. New condos are barely selling, yet asking prices are higher than a year ago. For a condo buyer, that is the clearest sign that resale deserves a close look.
The Costs Only New Homes Carry
Closing adjustments
Builders can pass certain costs on to you at closing, but only the ones listed in Schedule B of the Tarion Addendum to your agreement. An Ontario court in 2025 refused to let a builder recover construction costs by labelling them utility adjustments. Common items include:
| Adjustment | Typical amount |
|---|---|
| Tarion enrolment fee, $1 million to $1.25 million home | $2,536.85 including HST |
| Tarion enrolment fee, $1.25 million to $1.5 million home | $2,615.95 including HST |
| Water meter, City of Markham subdivision rate | $604.50 |
| Grading or landscaping deposit | Often around $1,500, usually refundable |
| Utility connections and other charges | Varies by builder; check Schedule B |
| Development charge increases | Only if your agreement allows it; charges in Markham fell in 2026 |
The Tarion fee is legally the builder's to pay. It becomes yours only if the agreement says so. Ask your lawyer to review Schedule B before the cooling-off period on a condo ends, and ask for a cap on adjustments before you sign on any new home.
Occupancy fees on new condos
In a new condo, you usually move in before the building registers. During that period you pay a monthly occupancy fee made up of interest on the unpaid balance, estimated property tax and estimated common expenses. None of it reduces your purchase price. The difference between occupancy and closing explains how it works.
Items that may not be included
Appliances, window coverings, finished basements, upgraded flooring and landscaping are often extras on a new home. Price the version you will actually live in, not the model home.
The Costs Only Resale Homes Carry
- Home inspection. Typically about $350 to $600 in the Toronto area, depending on size.
- Status certificate for a resale condo. Capped at $100 by law. Your lawyer reviews the reserve fund, special assessments and building issues.
- Near-term repairs. Roof, furnace, windows and appliances have a remaining lifespan. Build a realistic repair budget into your plan.
Costs That Apply to Both
- Ontario land transfer tax. Same calculation for new and resale. Markham has no municipal land transfer tax.
- Legal fees, title insurance and mortgage costs. New-build closings can involve more legal work because of the adjustments.
- Down payment. The same rules apply, though the deposit structure is very different. New homes often require several deposits over months or years, while resale typically requires one deposit and the balance on closing.
HST: The Biggest Difference
Resale homes carry no HST. New homes do, but in Ontario the price is usually quoted with HST included and the standard rebates assigned to the builder. The Ontario portion of that standard rebate is up to $24,000.
For an eligible first-time buyer purchasing a qualifying new home, there is more on top: a federal rebate of up to $50,000 and an Ontario rebate of up to $80,000, with full relief at $1 million or less and phasing out above that. Eligibility, dates and phase-outs are covered in how much HST a Markham first-time buyer can save. For a first-time buyer under $1 million, this can close most or all of the price gap with resale.
A Side-by-Side Checklist
| Question | New | Resale |
|---|---|---|
| Price per square foot today | Usually higher | Usually lower |
| Extra closing adjustments | Yes, per Schedule B | No |
| First-time buyer HST relief | Yes, if eligible | No |
| Warranty | Tarion new home warranty | None beyond your inspection and agreement |
| Repairs in years one to five | Lower | Higher |
| Timing certainty | Lower; dates can move | Higher; closing date is fixed |
| Negotiating room in 2026 | Builder incentives are common | Depends on the property and the listing |
If you are comparing projects in Markham Centre, what is actually coming to Markham Centre separates what is built from what is proposed. If the purchase is an investment, the detached versus condo investment comparison covers the rental side.
Questions about your own property or timeline? Call Michael John Lau, REALTOR®, at (416) 700-0286 for a direct answer on your street and your situation.
Next Steps
- Markham new construction — current new homes and projects.
- Buying a home in Markham — how Michael helps buyers compare new and resale.
- First-time buyer services — check whether the HST relief applies to you.
Frequently Asked Questions
Is it cheaper to buy new or resale in Markham?
Resale is usually cheaper to buy in 2026. GTA new condos averaged about $1,186 per square foot in Q2 2026 against about $830 for recently built resale units. For an eligible first-time buyer, new-home HST relief can close much of that gap.
What closing costs does a new home in Ontario have that resale does not?
Builders can charge adjustments listed in Schedule B of the Tarion Addendum, such as the Tarion enrolment fee, a water meter charge, a grading deposit and utility connections. Items not listed cannot be charged.
Who pays the Tarion enrolment fee?
The builder is responsible for it. It is passed to the buyer only if Schedule B of the agreement says so. For a home between $1 million and $1.25 million, the fee is $2,536.85 including HST.
Do I pay HST on a resale home in Markham?
No. HST applies to new homes, and new home prices in Ontario are usually quoted with HST included and the standard rebates assigned to the builder.
Did development charges go down in Markham in 2026?
Yes. Total charges for a single or semi-detached home fell to $172,307 on 1 July 2026, from $179,391 in January 2026, after York Region approved lower residential rates in May 2026.
Are occupancy fees credited to my purchase price?
No. Occupancy fees on a new condo cover interest on the unpaid balance, estimated taxes and common expenses. They do not reduce what you owe on closing.
Comparing new and resale?
Michael John Lau compares new and resale homes on the full cost, not just the price, so the decision fits your plan.
Michael John Lau, REALTOR® · Markham, Ontario · (416) 700-0286
Disclaimer. Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Figures reflect published BILD and Altus Group, Urbanation, Tarion, City of Markham and York Region data available in September 2026. Adjustments vary by builder and agreement. HST rebate eligibility depends on your circumstances and the agreement date. This article is general information, not legal, tax or financial advice; have a real estate lawyer review any new home agreement before you sign.