(TORONTO, ON) Prime Minister Mark Carney, alongside Ontario Premier Doug Ford, announced a new partnership between Canada and Ontario to build more affordable homes. This partnership will reduce taxes and fees for a home in Ontario by up to $200,000.
“Our new partnership with Ontario is about building more affordable homes, more transit, and more careers in the skilled trades. We’re tackling the housing crisis from every angle – so we can build up housing supply and bring down costs for Canadians,” said the Rt. Hon. Mark Carney, Prime Minister of Canada.
"This partnership doesn't just address housing - it supports good-paying jobs in the skilled trades right here in Nipissing - Timiskaming. It's about building more homes while strengthening our local economy," said MP Rochefort.
Ontario and Ottawa will each spend $4.4 billions on housing-related infrastructure over the next 10 years. The deal will cut development charges in half for three years. Development charges are used by municipalities to pay for infrastructure that supports housing, like roads, sewers and water.
To boost housing supply for Canadians and lower costs, the federal and Ontario governments will:
- Lower development charges: The federal government and Ontario will cost-match a total of $8.8 billion over 10 years, focused on housing-enabling infrastructure projects. This funding will support the reduction of municipal development charges by up to 50%. These reductions will be in place for three years and target municipalities covering 80% of the province’s population. This new infrastructure funding will offset much of the financial impact of development charge reductions on municipalities. However, municipalities will also be expected to support development charge reductions, so that all three levels of government are supporting increased housing supply and affordability. Development charges are a major upfront cost that can delay or prevent new housing projects. Lowering these upfront costs will help accelerate construction and build more homes. This marks the federal government’s first partnership through the Build Communities Strong Fund.
- Tax relief for homebuyers: Building on the elimination of the GST for first-time homebuyers last year, through this partnership, the full 13% of the HST will be removed for new homes in Ontario valued up to $1 million, saving buyers up to $130,000 on the purchase of their home. This maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million, and would decrease proportionally from $130,000 at $1.5 million to a maximum of $24,000 for homes valued at $1.85 million and above. This would apply to eligible agreements signed between April 1, 2026, and March 31, 2027. The Ontario government estimates this measure will deliver nearly $2.2 billion in tax relief, support an additional 8,000 housing starts next year, create up to 21,000 jobs, and contribute $2.7 billion to Ontario’s GDP.
As we deliver on these projects, the governments of Canada and Ontario will prioritise domestic suppliers, content, and materials through Canada’s new Buy Canadian Policy. This approach will strengthen domestic demand, protect Canadian workers and industries, stabilise supply chains, and build a more resilient economy.
By working in partnership with Ontario, the federal government is helping build more affordable homes and transit, while creating thousands of careers in the skilled trades. We are taking control and building the future we want for ourselves so we can build Ontario strong to build Canada strong.
Quick facts:
- Development charges – the fees charged to developers to fund the infrastructure required to support new homes, such as water mains, roads, parks, and facilities– are a major hurdle in the housing market. In recent decades, they have been growing at an unsustainable rate, increasing the cost of every new home, compressing margins, and stalling new builds. Further details on the agreement to lower development charges will be provided by the Government of Ontario.
- The federal government will explore additional opportunities to partner with Ontario and other jurisdictions to convert good, vacant, or not fully constructed units into affordable housing options.
- Under the provincial and territorial stream of the Build Communities Strong Fund, provinces will be required to cost-match federal investments and take action to reduce the cost of construction, including through reductions to development charges where they pose a barrier to housing construction. More details on the Fund will be released very soon.
- On March 26, 2026, the government introduced Bill C-26, An Act to authorize certain payments to be made out of the Consolidated Revenue Fund for the purpose of improving housing supply. This proposed legislation seeks to immediately provide $1.7 billion to provinces and territories to implement measures to increase Canada’s housing supply.
- Build Canada Homes is Canada’s new federal agency with the mandate to scale the supply of affordable housing. By leveraging public land, flexible financial tools, and modern methods of construction, the agency is catalysing a more productive and innovative homebuilding industry.
- The Buy Canadian Policy was first announced as part of a broader suite of strategic measures to support Canadian workers and businesses in sectors most impacted by U.S. tariffs and trade disruptions.
Photo: MP Rochefort recently met Anthony Farrugia, Chair of Northern Ontario’s Home Builders Association and other Ontario home builders who applaud the joint announcement by Prime Minister Carney and Ontario Premier Doug Ford on March 30th.