Are you thinking about buying a new home? Before you fall in love with floorplans or start a mood board for your dream kitchen, there’s one simple step that can help protect your investment: Make sure your builder is licensed.
In Ontario, the law requires all builders and sellers of new homes to be licensed by the Home Construction Regulatory Authority (HCRA).
As the province’s regulator, the HCRA holds licensed builders and sellers to professional standards for competence, ethical conduct and accountability. It also provides tools and resources to help homebuyers make informed decisions throughout the homebuying journey — from before you buy to after you’ve signed on the dotted line.
Why using a licensed builder or seller matters
Buying a home is one of the biggest financial decisions you’ll ever make. Licensing signals that a builder or seller has demonstrated core competencies (like project management, financial planning and knowledge of the Ontario Building Code). And only licensed builders are bound to ethical standards, including honesty and integrity.
Unlicensed builders haven’t met these benchmarks. That means a greater risk of poor construction, limited warranty protections and reduced accountability if something goes wrong. In short, if there's no licence, then there's no oversight — which is a risk you don't want to take.
How to check if a builder is licensed
It takes just a few seconds to check a builder’s status using the Ontario Builder Directory. The Builder Directory will help you find out:
- Whether the builder is licensed to build or sell new homes
- How many homes they’ve built
- If they’re facing insolvency proceedings
- Whether they’ve been subject to regulatory action by the HCRA — including any charges or convictions against the builder
If a builder isn’t listed, they're not licensed, and you should not work with them. It’s that simple. If you’re unsure, you can contact the HCRA for more information.
It all starts with knowing your rights
The HCRA’s website also offers a range of resources to help you navigate the homebuying process. Whether you’re trying to understand your rights as a homebuyer, file a complaint about builders' conduct, or discover what to expect after you buy, you’ll find information tailored for you — not just industry professionals.
There’s also a dedicated Consumer Education & Resource Hub featuring information and resources from trusted organizations to support consumers throughout the homebuying and homeownership journey.
The bottom line
A new home is a major investment; you deserve to feel confident in the people building it. Before you buy, take a few minutes to confirm your builder is licensed. Use the Ontario Builder Directory to check their background and explore the HCRA’s website to help you make smart, informed decisions.
Because buying a home should be exciting — not uncertain.
