TRREB continues to address the growing impact of government taxes, fees, and charges on housing affordability across Ontario.

Government-imposed costs can account for an estimated 30 to 36 per cent of the total cost of a new home. Development charges (DCs) make up a significant portion of these costs, accounting for roughly 20 per cent of the total.

Although developers pay development charges upfront, they typically pass these costs on to purchasers through the home’s purchase price or through adjustments payable at closing.

TRREB’s Position

In its response to the provincial consultation paper, TRREB argues that consumers should be clearly informed whenever a government-imposed tax, fee, or charge makes a material contribution to the cost of a new home.

Providing this information before buyers sign a purchase agreement would enhance transparency and help consumers make more informed decisions.

Recommendations

TRREB recommends that disclosure of development charges be:

• Clearly and prominently included within the vendor section of the Agreement of Purchase and Sale (APS).
• Presented directly in the APS, rather than buried in an addendum, appendix, information sheet, or other supplementary document.
• Updated and re-disclosed to purchasers if development charges change after the APS has been signed.

Next Steps

For complete details, read TRREB’s submission to the provincial consultation.

TRREB will continue to advocate for greater transparency in home purchase transactions and keep Members informed of developments on this issue.