Affordability is often the first conversation in today’s housing market for REALTORS® and their clients. Buyers want good value while staying within their budget, while sellers want the best possible price for their property.
Two recent government measures – the Canada–Ontario Development Charges Reduction Program (DCRP) and expanded HST relief for new homes – could help lower costs, support more housing supply, and create new opportunities across the province.
Reducing Upfront Costs
The DCRP gives municipalities an incentive to reduce residential development charges (DCs), which are fees tied to new housing and infrastructure. These charges can add up to 20 per cent to the price of a new home, significantly affecting homebuyers and renters.
Through the program, the federal and Ontario governments will provide up to $8.8 billion over 10 years for housing-enabling infrastructure, with funding prioritized for municipalities that cut development charges by 30 to 50 per cent or more while maintaining those reductions for at least three years. When municipalities reduce the upfront cost of building, builders are more likely to bring new homes to market and offer more choice. This provides a boost to both the new home and existing home markets as households can afford to make their next move.
How HST Relief Helps Buyers
The expanded HST rebate adds another important consumer benefit. The provincial and federal governments announced temporary HST relief for eligible new homes valued up to $1.5 million with the rebate amount capped at $130,000 and reduced HST relief for eligible new homes valued between $1.5 million and $1.85 million. This rebate helps reduce the total cost of purchasing a home.
“TRREB strongly supports the decision to extend the HST rebate beyond first time homebuyers to all buyers,” wrote TRREB CEO John DiMichele in a statement. “Removing this tax burden will help lower the cost of housing, improve the feasibility of bringing new projects to market, and support greater housing supply across Ontario, especially supply of missing middle housing, including multiplexes and mid-rise development units.”
What This Means for REALTORS® and Their Clients
These changes may lead some potential homebuyers to revisit their budget or explore communities that previously felt out of reach. A REALTOR® can explain what questions buyers should ask about eligibility, timing, closing costs, and how savings affect purchasing power. They can also help sellers understand how new supply, buyer confidence, and shifting affordability measures may influence local market conditions.
Supporting More Housing Choice
The two programs work together. The DCRP focuses on the cost of building homes, while the HST rebate focuses on the cost to eligible buyers. By lowering costs at both stages, these measures can improve project feasibility, encourage more construction, and support greater housing choice, including purpose-built rentals, missing middle housing, mid-rise homes, and other ownership options that reflect changing household needs.
TRREB’s Continued Advocacy
TRREB has long advocated for evidence-based policies that reduce unnecessary costs, increase supply, and improve affordability. These programs reflect that approach, which is why TRREB is encouraging municipalities to move quickly and participate in the DCRP.
“At a time when housing starts are falling and affordability challenges remain severe, all levels of government must continue working together to remove barriers to homebuilding,” said TRREB President Daniel Steinfeld in a media release. “This program has the potential to lower costs, attract investment, unlock stalled projects, and help bring more homes to market faster.”
Affordability is often the first conversation in today’s housing market for REALTORS® and their clients. Buyers want big value while maintaining their budget, while sellers want the best possible price for their property.
Learn more about TRREB’s ongoing advocacy work and the policy solutions we support to improve housing affordability, increase supply, and help more people find a place to call home.