Key facts
| Rule | What it means for you |
|---|---|
| Written contract | Any home renovation contract worth more than $50 must be in writing |
| Estimate accuracy | Final price cannot exceed the estimate by more than 10% unless you signed a change to the contract |
| Cooling-off period | 10 calendar days to cancel a contract signed in your home, for any reason, starting when you receive a written copy |
| Refund | For most contracts the business has 15 days to return your money after you cancel |
| Misrepresentation | If the work or price was described in a false or misleading way, you have up to 1 year to withdraw |
| Deposit | Ontario’s own guidance says no more than 10% down, and never pay in full before the work is finished |
| Holdback | Owners are expected to retain 10% of the value of work as it is done, so unpaid subtrades can be paid from it |
The consumer rules come from Ontario’s Consumer Protection Act, as described on the province’s own page for homeowners, checked 18 September 2026.
Does a renovation contract have to be in writing in Ontario?
Yes, once it is worth more than $50 — which is every real renovation. A handshake and a text message are not a contract under the rules that protect you, and if there is nothing in writing there is nothing to measure the final bill against.
A usable contract names the work room by room, the materials by brand and model where it matters, who pulls the building permit, who books inspections, the start and finish dates, the payment stages, and what happens when something unexpected turns up behind a wall. If your quote is one number on one line, you do not have a contract. You have a hope.
Can the final bill be higher than the quote?
By up to 10%, yes. Beyond that, the increase only sticks if you agreed to new work or a new price and signed a change to the contract. A verbal “that’ll be another couple thousand” said in your kitchen is not a signed change.
This is the single most useful sentence in this guide, so here it is as a rule you can apply: get every change order in writing before the work behind it starts. Three lines on a phone screen with a date and both names is enough. What is not enough is finding out at the end.
Can I cancel after I sign?
If you signed at home — at the kitchen table, on the porch, in your driveway — you have 10 days from receiving your written copy, and you do not need a reason. Send the cancellation in writing and keep proof that you sent it. The business then has 15 days to return your money for most contracts.
Two things change the picture. First, work started during those 10 days is still owed reasonable compensation, so a contractor who books a demo crew for the morning after signing is, intentionally or not, shrinking your exit. Second, if the job was sold to you with false or misleading claims, the window stretches to a year.
How much deposit is normal?
Ontario’s guidance to homeowners is no more than 10% down. Contractors will tell you materials have to be ordered, and for custom cabinets or windows that is true — so tie the larger payment to the delivery of those specific materials to your driveway, not to the calendar.
A 50% deposit on a $40,000 kitchen is $20,000 of your money sitting in someone else’s account against work that has not started. Sometimes the company is solid and it is fine. The point is that you are the one carrying the risk, and you should know you are carrying it.
Can a subcontractor put a lien on my house if I already paid the contractor?
Yes. This is the part that surprises people. If your general contractor was paid in full but did not pay the tiler, the tiler can register a lien against your property. That is why the Construction Act expects an owner to hold back 10% of the value of the work as it is done — the holdback is the pot that unpaid subtrades get paid from.
Ontario’s Construction Act changed on 1 January 2026, including how holdback is released. Law firms including Blakes, BLG and Fasken have published summaries of what moved. If your project is large, or if a lien has already appeared on your title, this is a question for a construction lawyer and not for a directory website.
On a $15,000 bathroom, the practical version is short: ask who the subtrades are, and ask for a signed statement that they have been paid before you release the final payment.
Red flags when you read a quote
| What you see | Why it matters | What to do |
|---|---|---|
| One number, no line items | A lump sum can move after work starts and you have nothing to compare it against | Ask for labour, materials, permit and disposal as separate lines before you sign |
| A deposit of 30–50% | Your money is at risk against work that has not begun | Offer 10%, then stage payments against finished milestones |
| “Cash price, no tax” | No receipt means no warranty claim, no proof of what you paid, and no paper trail if a lien appears | Pay by cheque or transfer and keep every invoice |
| Pressure to sign today for a discount | A price that only exists for the next hour is a sales tactic, not a price | Take the quote away and compare it to two others. A real company will still be there tomorrow |
| Nobody named for the permit | If the contract is silent, the homeowner ends up responsible | Write into the contract who applies and who books inspections |
| No WSIB clearance or liability certificate | An injury or a flood on your property can become your problem | Ask for both in writing and verify them yourself |
| Changes agreed verbally | Only a signed change makes an increase above 10% enforceable | Written change orders, dated and signed, before the work starts |
Frequently asked questions
Ontario’s Ministry of Public and Business Service Delivery takes consumer complaints, and Small Claims Court handles amounts up to $50,000. Report it while you still have the contract, the estimate and proof of payment.
The written contract rule applies above $50, which covers almost any paid job. The practical difference is scale: for a $300 repair the paperwork is a short email confirming price and scope, and that email is worth sending.
Cancelling within the cooling-off period means no cancellation fee, and the business has 15 days to return your money. If work and materials were already supplied during those days, you still owe reasonable compensation for that part.
Put it in writing, state clearly that you are cancelling, date it, and send it by a method that proves delivery — email plus registered mail is common. Keep a copy. For most contracts the business has 15 days to refund you.
Ontario’s rules say the price cannot exceed the estimate by more than 10% unless you agreed to new work or a new price and signed a change. If you did not sign anything, raise it in writing with the contractor before paying and keep the estimate.
The 10-day right described by the province applies to contracts you sign in your home. If you signed at a showroom or an office, check the cancellation terms written into your own contract, because the automatic right may not apply to you.
Sources
- Government of Ontario, Your rights when starting home renovations or repairs — ontario.ca, checked 18 September 2026
- Government of Ontario, Your rights when signing or cancelling a contract — ontario.ca, checked 18 September 2026
- Consumer Protection Act, Ontario — ontario.ca/laws
- Blakes, BLG and Fasken, published summaries of the Construction Act amendments in force 1 January 2026
This guide explains published Ontario rules in plain language. It is not legal advice, and Carpenter Bee is not a law firm. For a dispute, a lien or a contract you have already signed, talk to a lawyer or a licensed paralegal.
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