Tools · Contractor rules by province

Hiring a contractor in Ontario: the rules

Ontario has no licence for renovation contractors and no cap or protection fund for renovation deposits. The provincial licence (HCRA) covers new home builders and sellers only. What protects a renovating homeowner: the written contract the law requires over $50, the 10 day cooling off on contracts signed at home, the 10 percent estimate rule, and the trade checks that do exist.

Rules verified against the statute and the regulator's pages on 2026-07-17.

What applies at your job value

Pick your province and a rough job value. The requirements that apply at that value appear below, with the official source behind each one. Your signed contract governs, not the estimate.

Choose a province and a value to see the requirements that apply at that size of job.

The rules, cited

Deposit rules

No Ontario law caps what a renovation contractor may ask as a deposit, and no fund protects it. The province's own guidance recommends keeping the down payment to no more than 10 percent, but that is advice, not law. New homes are different: Tarion protects a freehold buyer's deposit up to $60,000 on homes up to $600,000, and 10 percent of the price up to $100,000 above that, with condominium deposits held in trust.

Ontario: your rights when starting home renovations or repairs (opens in new tab) · Tarion: deposit coverage before you close (new homes) (opens in new tab)

Licence position

Ontario does not issue a general provincial licence for renovation contractors, so a renovator has no general provincial licence to show. The HCRA licence covers new home builders and sellers only. The checks that do exist: electrical contracting needs an ESA licensed electrical contractor, fuel and gas work needs a TSSA registered contractor, and some cities (Toronto among them) require a municipal building renovator licence.

HCRA: do I need a licence (new home builders and vendors only) (opens in new tab) · ESA: find a licensed electrical contractor (opens in new tab)

  • Tarion and the HCRA cover NEW homes: neither protects a renovation, however large.
  • Electrical and gas work are licensed at any value (ESA, TSSA) even though general renovation is not.

Check before you pay

Search the Ontario Builder Directory (new home builders, HCRA) (opens in new tab) is the official place to start. Then see the public evidence we hold: check the business by name or see the public register entries we have found, and browse contractors with public evidence.

Common questions

How much deposit should I pay a contractor in Ontario?

No Ontario law caps what a renovation contractor may ask as a deposit, and no fund protects it. The province's own guidance recommends keeping the down payment to no more than 10 percent, but that is advice, not law. New homes are different: Tarion protects a freehold buyer's deposit up to $60,000 on homes up to $600,000, and 10 percent of the price up to $100,000 above that, with condominium deposits held in trust.

Does a contractor need a licence in Ontario?

Ontario does not issue a general provincial licence for renovation contractors, so a renovator has no general provincial licence to show. The HCRA licence covers new home builders and sellers only. The checks that do exist: electrical contracting needs an ESA licensed electrical contractor, fuel and gas work needs a TSSA registered contractor, and some cities (Toronto among them) require a municipal building renovator licence.

What are my cancellation rights in Ontario?

Any home renovation or repair agreement worth more than $50 must be in writing. A contract signed in your home carries a 10 calendar day cooling off period, cancellable for any reason. The final price may not exceed the written estimate by more than 10 percent unless you agreed to new work or a new price.

What protects the money if it goes wrong in Ontario?

Renovations have no warranty program, no deposit protection and no compensation fund in Ontario; the remedies are the contract and the courts. New homes carry the Tarion warranty, and for purchase agreements signed from 1 April 2026 a freehold buyer must notify Tarion within 45 days of signing to qualify for maximum deposit coverage.

This is guidance from the public rules, not legal advice. Provincial law changes and your signed contract governs the details. Check the regulator's current page before you sign or pay anything.

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