It’s remarkable how much of a new home’s price in Ontario comes from taxes and government charges—about 36%, in fact. That means more than a third of what buyers pay isn’t for bricks and mortar, but for levies like development charges, which have topped $100,000 per single-family home in many areas. When you add in other fees, the total can reach as high as $200,000.
Recently, a joint federal-provincial initiative has given municipalities access to funding if they cut residential development charges by 30-50% (or more) and keep those reductions in place for at least three years. After the HST cut, we saw a real difference: 8,400 new home sales in the first three months, compared to 3,600 in the same period previously.
As someone who has guided clients through countless transactions over the years, I see firsthand how these policy changes can affect affordability and confidence. Making the HST rebate and development charge reductions permanent could give buyers, builders, and municipalities the stability they need to boost both affordability and supply—something our communities truly need.
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