BUILDING a Stronger durham Together

Today, the Government of Ontario introduced Bill 98, the Building Homes and Improving Transportation Infrastructure Act, a new piece of legislation aimed at reducing red tape, improving planning and approvals processes, and supporting the timely delivery of new housing and infrastructure across the province, while protecting jobs and economic activity.

Together, the Hon. Rob Flack, Minister of Municipal Affairs and Housing, the Hon. Prabmeet Sarkaria, Minister of Transportation, and the Hon. Todd McCarthy, Minister of the Environment, Conservation and Parks, introduced the proposed legislation which builds on recent actions taken by the Ontario government and reflects a broader, systems-based approach to reform. The government continues to advance coordinated measures that work together to modernize the approvals process, improve predictability, and reduce unnecessary delays and costs that impact housing delivery and the ability to sustain jobs across the residential construction sector.

Ontario Home Builders’ Association (OHBA) and Building Industry and Land Development Association (BILD) welcome the continued focus on addressing systemic barriers within the planning and development approvals framework. Scott Andison, OHBA’s CEO and Dave Wilkes, BILD President & CEO, were both in attendance for today’s announcement.

Key measures within the legislation include, among others:

These measures complement recently announced initiatives, building on the government’s ongoing work to accelerate housing and transportation infrastructure, supporting a more efficient, coordinated system that can get shovels in the ground faster, support jobs across the residential construction sector, and improve overall affordability for Ontario residents and families. The new legislation signals a continued commitment to addressing housing supply challenges through coordinated policy action.

Quote from Scott Andison, CEO, OHBA:

“Our industry has consistently emphasized the importance of reducing red tape and bringing greater predictability to the planning approvals process. Ontario’s continued efforts to streamline approvals and remove barriers are both welcome and necessary. Actions such as parkland dedication reform, limiting the imposition of enhanced development standards, and advancing site plan improvements, alongside the recently announced HST relief off of all new homes, demonstrate a clear, coordinated approach to getting housing moving again. Taken together, these measures reflect meaningful progress toward modernizing the system and supporting both new home construction and the renovation sector, and the jobs they create across Ontario.”

OHBA and BILD will continue to review the legislation in detail and engage with government on implementation to ensure these reforms deliver tangible improvements in timelines, certainty, and housing supply outcomes.

The Ontario News release can be accessed here:

Ontario Introducing Legislation to Improve Transit and Build More Homes.

The Media Briefing technical deck can be found here: 

Building Homes and Improving Transportation Infrastructure Act

The legislation can be found here:

Bill 98, Building Homes and Improving Transportation Infrastructure Act, 2026.

This morning, the provincial and federal governments announced an agreement to partner to lower development charges (DCs) in Ontario by up to 50 per cent and to fund infrastructure investment.

The announcement of the 10-year, $8.8 billion program was made by Premier Doug Ford, Prime Minister Mark Carney, and Toronto Mayor Olivia Chow. It represents a major step forward in lowering the cost of building and addressing project viability across the province, particularly in high-DC areas, such as the Greater Toronto Area (GTA). DCs will be reduced for at least a three-year period.

A copy of the provincial announcement and backgrounder can be accessed here; the federal announcement can be found here.

BILD and OHBA have long advocated for both temporary DC relief and structural changes to materially lower rates and address the negative impacts of high DCs on project viability and housing affordability.

Today’s announcement follows the earmarking of $12.2 billion in the November federal budget to lower DCs, to be matched by provinces. 

The forthcoming program will include at least two key conditions:

1. The program will provide funding to municipalities (and regions) that apply, provided they lower their DCs for builders and developers.
2. Municipalities must agree to update their development charge background studies. This will fast-track implementation of the requirements under Bill 17 and Bill 60 to remove land values from DC calculations. Where municipalities in the GTA have begun this work, BILD has seen preliminary results indicating a 20 to 25 per cent permanent reduction in DC rates.

Municipalities where development charges have already been reduced will be prioritized. More details will be provided as they become available.

 Today, the Ontario government tabled the 2026 budget, A Plan to Protect Ontario. A copy of the government release can be found here. 

There were no new housing-related items or initiatives, with the exception of the following three: 

1. The previously announced HST reduction on all new homes for the period of April 1, 2026, to March 31, 2027. A full detailed description of this announcement, which occurred on March 25, can be found here.
2. An investment of $210 billion in a 10-year capital plan, which includes $37 billion in 2026 and 2027 to build highways, transit, and community infrastructure, with no further details about what will be included in the community infrastructure component. 
3. The Province will work with the Federal Government to provide funding to eligible municipalities that act to significantly reduce development charges and, in doing so, make housing more affordable.

 
Scott Andison, CEO of the Ontario Home Builders' Association, said, “We welcome the Ontario government’s 2026 budget, including the HST relief on new homes and its significant infrastructure commitment. Aligning these investments with housing-enabling infrastructure will be key to supporting new supply across the province.”
 
As a reminder, OHBA and BILD will be hosting two webinars for our members:
 
Friday, March 27 – 10:30 am
Ontario Budget 2026: What It Means for Our Members
This session will highlight key announcements, policy changes, and funding priorities affecting builders, developers, and renovators across the province.
Register Here
 
Tuesday, April 7 – 9:00 am
Changes to Sales Tax (HST) with MNP
BILD and OHBA are partnering with MNP to provide members with implementation guidance regarding the removal/reduction of harmonized sales tax (HST) on new homes. 
Register Here

Although there was little new news in today’s budget for housing, other anticipated initiatives are being advanced and implemented outside the budget.

The Missing Middle Initiative (MMI) and the Ontario Real Estate Association (OREA) partnered to author a report, “A Pathway to Development Charge Reform” that looks at seven practical recommendations on how to lower development charges (DCs) in a fiscally responsible way that does not increase property taxes.

In the report, the seven recommendations in OREA’s roadmap to reducing development charges are:

1. Provide immediate relief to homebuyers and accelerate housing construction through a two-year DC suspension program.

2. Lower tax bills and interest costs by reducing infrastructure construction costs through alternative financing mechanisms, such as municipal service corporations and municipal utility districts.

3. Substantially lower the price of new homes by removing tens of thousands of dollars in interest costs and tax-on-tax by implementing a transparent direct-to-buyer DC billing model that exempts DCs from Harmonized Sales Tax (HST) and Land Transfer Tax (LTT).

4. Lower the price of new homes by removing population growth-related costs from DCs.

5. Reduce DCs and eliminate waste in the system by increasing transparency and standardizing methodologies across municipalities.

6. Reduce cost pressures on municipalities by improving coordination of infrastructure planning, including transit and roads, between all levels of government.

7. Improve accountability and public trust by increasing transparency and reporting of DCs.

The full report can be downloaded here or from OREA's website.

Today, Doug Ford, Premier of Ontario, the Hon. Peter Bethlenfalvy, Ontario Minister of Finance, the Hon. Rob Flack, Ontario Minister of Municipal Affairs and Housing, accompanied by Carolyn Parrish, Mayor of Mississauga, announced the removal of the harmonized sales tax on new homes under $1 million and a reduction of the HST for new homes between $1 million and $1.85 million, for all new home buyers, for the next year.
 
This announcement is a direct reflection and result of BILD and OHBA’s comprehensive and consistent advocacy efforts over the last several months.
 
Scott Andison, OHBA’s Chief Executive Officer, and Dave Wilkes, BILD’s President and CEO, were present at today’s press conference.
 
Copies of the Ontario/federal government news releases can be accessed here, and a copy of the BILD/OHBA joint release on the announcement can be accessed here.
 
This measure will take effect on April 1, 2026, and will run until March 31, 2027.
 
A full 13 per cent sales tax reduction will apply to new homes with a purchase price under $1 million for all buyers of new homes, and where the home is to be used as their principal residence. The change will provide a flat $130,000 sales tax reduction for new homes between $1 million and $1.5 million, and for amounts between $1.5 million and $1.85 million, a declining tax reduction from $130,000 to the existing $24,000 provincial rebate amount. New homes in excess of $1.85 million will continue to receive the $24,000 provincial rebate.
 
Only purchases of new homes made on or after April 1, 2026 are eligible for the sales tax reduction/exemption. Per Ontario government officials, the rebate/tax reduction can be signed back to the vendor on the agreement of purchase and sale (APS). The current sales tax rules will continue to apply for existing signed agreements of purchase and sale.

As currently defined within the regulations, substantially renovated new homes are treated as new housing for tax purposes and are included in this new policy measure.

Today’s announcement is the result of years of advocacy work. This latest policy change is designed to reduce upfront homeownership costs, help restore momentum in Ontario’s housing market, and directly support the continued construction of new homes to meet the needs of Ontario’s growing population. BILD and OHBA have been consistently advocating for this measure to help support the industry, member companies, and their employees in light of the downturn in sales from 2022 onwards. We have been vocally steadfast that the first-time new home buyers’ program is insufficient. 
 
BILD and OHBA are partnering with MNP to provide members with implementation guidance during a webinar scheduled for April 7th at 9:00 am. Members can register at BILD/OHBA MNP SALES TAX WEBINAR. A form to collect member questions will be circulated prior to the webinar.  
 
As part of our joint advocacy, OHBA, BILD and Peter Norman, Vice-President and Economic Strategist at Altus Group, developed two background papers. The first, presented to Minister Bethlenfalvy, Minister Flack and federal government representatives, summarized the economic impact of the current downturn on our sector and assessed the impact of full HST relief. The second, presented to Minister Mulroney and shared with the Premier’s Office, Minister Bethlenfalvy, Minister Flack, and federal representatives, demonstrated the combined impact of full HST relief and a 50 per cent reduction in development charges (DCs) across Ontario.
 
BILD and OHBA will continue to work with both the federal and provincial government to implement structural and material DC reductions. In order to support our advocacy on this front, we commissioned Daryl Keleher of KPEC to provide a roadmap  on how to achieve this objective. This paper has been presented to both the provincial and federal governments and selected municipalities.
 
Please do not hesitate to reach out to any of the following with questions.

Dave Wilkes                dwilkes@bildgta.ca                 (416) 565-7326
Scott Andison             sandison@ohba.ca                 (416) 525-8071
Justin Sherwood         jsherwood@bildgta.ca            (416) 371-6005
Kirstin Jensen             kjensen@ohba.ca                   (905) 933-7874

Ontario’s housing landscape is changing fast - and we believe that the 2026 Ontario Budget will be a pivotal piece of that transformation. 
 
Join us for an exclusive members-only webinar, co-hosted by OHBA and BILD GTA, as we explore Ontario’s overall economic outlook, what pieces of the Budget are relevant to the residential construction sector, and where we go from here. 

The webinar will take place on Friday March 27, 2026 from 10:30AM – 12:00PM, and will be hosted by Scott Andison from OHBA, and Dave Wilkes from BILD GTA. They will share the key points from the 2026 budget and what measures will impact our industry. You can submit questions in advance to connect@ohba.ca 

Don't Miss Out - Register Today!

The Durham Region Home Builders’ Association received a letter from the Minister of Citizenship and Multiculturalism regarding Ontario’s Heritage Framework Transformation (HFT).

This update represents a significant step toward reducing archaeological review delays and improving process certainty for housing and infrastructure projects across Ontario.

Please see the attached Member Release from OHBA on the key changes that are moving forward now.

The Ministry has posted an ERO (https://ero.ontario.ca/notice/026-0216) and comments will be accepted until April 5, 2026.

Further to OHBA’s recent updates regarding Bill C-4 and the removal of the federal portion of the GST for qualifying first-time home buyers, the Canada Revenue Agency (CRA) has confirmed that applications for the new First-Time Home Buyer (FTHB) GST/HST rebate are now open.

The rebate provides eligible first-time home buyers with a full or partial rebate of the GST, or the federal portion of the HST, on newly constructed or substantially renovated homes. Eligible purchasers may receive a rebate of up to $50,000.

Eligibility and Timing

The rebate is available for qualifying purchasers who entered into an Agreement of Purchase and Sale with a builder on or after March 20, 2025. The measure applies to new homes purchased from a builder, substantially renovated homes, and certain owner-built homes.

Applications for the rebate must generally be submitted within two years of taking ownership of the home or completing construction.

Implementation for Builders

Consistent with the existing GST/HST new housing rebate program, builders can credit the FTHB GST/HST rebate to eligible purchasers at closing and submit the completed rebate application to the CRA on the purchaser’s behalf.

For transactions that closed prior to Royal Assent of Bill C-4, builders could not credit the rebate at the time of closing. In these cases, eligible purchasers will need to apply directly to the CRA to receive the rebate.

Where a builder does not credit the rebate, purchasers may also apply directly through their CRA account or by submitting the applicable rebate application form to the CRA.

Additional Information

CRA has published additional guidance on eligibility and the application process, including the required forms for purchasers and builders.

Further details are available here: First-time Home Buyers’ (FTHB) GST/HST Rebate

The Government of Ontario, in its Fall Economic Statement released on November 6, 2025, confirmed its intention to match the federal program once implemented. We understand that there remains an outstanding federal regulation that must be in place before the Ontario portion of the rebate can be implemented.

In addition, there was a change to the retroactive eligibility date during the federal legislative process. While the program was originally announced as applying to agreements entered into on or after May 27, 2025, the final legislation amended the eligibility date to March 20, 2025. This change will also require ratification by the Ontario government prior to implementation.

Ontario has indicated that it has taken the necessary steps on its side to enable the program once the federal regulatory framework is finalized. Regardless of the timing of implementation, the provincial rebate is expected to apply retroactively to eligible agreements entered into on or after March 20, 2025.

We recognize that the delay in implementation may create uncertainty for some consumers; however, eligible purchasers will still be entitled to receive the rebate once the necessary regulatory steps are completed. OHBA will continue to monitor developments and will keep members updated as additional information becomes available.

OHBA will continue to provide updates to members as additional implementation guidance becomes available.

OHBA is providing members with an update following last evening’s confirmation that Bill C-4 has received Royal Assent. The legislation implements the federal government’s commitment to remove the federal portion of the GST on qualifying new homes valued up to $1 million for first-time home buyers, with a phased reduction for homes valued between $1 million and $1.5 million.

The measure comes nearly a year after the federal government first announced its intention to introduce GST relief for first-time buyers.

Implementation Details

The Canada Revenue Agency (CRA) has advised that the required forms to claim the enhanced GST rebate will be available shortly, expected within the next several days. CRA has also indicated that it will be hosting a builder-focused webinar to outline the process and administrative requirements associated with the rebate.

The First-Time Home Buyer (FTHB) GST rebate will apply to qualifying purchasers where the Agreement of Purchase and Sale was entered into on or after March 20, 2025 and before 2031. The March 20, 2025 date reflects the date on which the federal government first announced its intention to introduce GST relief for first-time home buyers. During the legislative process, the eligibility window was aligned with that announcement date to ensure purchasers who entered into agreements following the policy announcement would be eligible for the rebate.

Where ownership of the home transferred prior to Royal Assent, purchasers will be required to apply directly to the CRA to receive the rebate. For transactions moving forward, builders will be able to credit the rebate to eligible purchasers once the CRA forms become available.

Ongoing Advocacy

While this measure represents a first step, OHBA continues to advocate for broader tax relief on all new housing, including the removal of sales taxes on all new homes in order to improve affordability and support increased housing supply.

OHBA and our local HBAs across the province are also continuing to advocate for provincial PST relief on new housing construction. We remain optimistic that the provincial government will include measures to address housing affordability and supply in the upcoming Ontario Budget scheduled to be released on March 26, 2026.

Additional implementation details are expected shortly and will be shared with members as they become available.

At the March 9, 2026 Planning and Development Committee meeting, Clarington Council approved report PDS-013-26 – Planning Act Application Fee Review and User Fee Bylaw Amendment.  Once the new bylaw is approved by Council at the March 23, 2026 council meeting, the new application and user fees will come into effect.

Clarington staff brought their initial review and report to DRHBA for feedback.  Upon review, DRHBA raised concerns that the municipality was using part of the fees to create a reserve fund to be able to fund the planning and development department during down times.  Given that the housing industry is currently struggling, DRHBA felt that increasing fees to create this fund would create another barrier to building and add to the existing affordability crisis.  Through several meetings and collaboration between DRHBA representatives and Clarington staff, the municipality agreed to remove this portion of the fees, effectively reducing the proposed fees by approximately 33%.

Given the current economic climate, this is a big win for members as DRHBA was able to reduce the proposed increase substantially, while the municipality is still able to provide appropriate staffing levels to process applications in a timely manner.