Who needs the licence?
The HCRA lists four cases: A builder of new homes must be licensed as a builder
; a seller as a vendor; a builder who builds and sells as both; and A builder who builds contract or custom homes on land owned by the owner of the home must be licensed as a vendor (seller) and builder
(Home Construction Regulatory Authority, read November 5, 2026). So hiring a builder for a house on your own lot does not get around it.
| Who | Licence |
|---|---|
| A builder of new homes | Builder |
| A seller of new homes | Vendor (seller) |
| A builder who builds and sells | Builder and vendor |
| A builder of contract or custom homes on the owner's land | Vendor and builder |
| An owner building for their own use on their own land, not selling | May not need one; no statutory new home coverage |
What counts as a new home?
In the HCRA's plain terms, a new dwelling, not previously occupied, used for living in, self-contained, usable year-round and on a permanent foundation. It adds: Coach, laneway, and 'tiny' homes generally require licensing and warranty coverage.
And the other side: Typically, renovations or upgrades to an existing home do not make the home "new"
(Home Construction Regulatory Authority, read November 5, 2026). That is why a basement apartment is a renovation and a garden suite is usually a new home; basement unit or garden suite compares them.
What about building it myself?
Allowed, with a trade-off. The HCRA: an owner building for their own use on land they own may not require a builder's licence, provided they do not sell the home after construction.
But an owner-built home is not eligible for warranty coverage under the Ontario New Home Warranties Plan Act (ONHWPA) and will not have statutory warranty coverage.
The owner-builder takes on the builder's role: safety, insurance, permits and contracting every trade (Home Construction Regulatory Authority, read November 5, 2026).
What if a builder has no licence?
It is illegal, and the HCRA says a conviction may lead to fines; imprisonment; and/or an order to pay compensation and/or make restitution.
It adds: It is also illegal to build a new home without it being enrolled in warranty with Tarion, even if the builder is licensed.
(Home Construction Regulatory Authority, read November 5, 2026)
How do I check a builder?
In the Ontario Builder Directory, which the HCRA hosts; it shows the licence and the builder's history. The HCRA's advice is that people should confirm the builder is licensed by the HCRA and that their new home is approved by Tarion and enrolled in the warranty plan before signing a contract.
This is separate from the City of Hamilton trade licence in how to check a contractor. Replacing an old house is in tearing down a house to rebuild, and the whole sequence for a new house is on the new homes page.