Ontario's approach to tax relief is making a real impact on new home affordability—a topic I follow closely in my work throughout Mississauga and Oakville. Did you know that about 36% of a new home's cost in Ontario comes from taxes and government fees? In some areas, development charges alone can climb past $100K for a single-family home, and with other levies, the total can add up to $200K. A recent federal-provincial initiative has encouraged municipalities to lower those development charges by 30%-50% (or more) for at least three years, in exchange for access to new funding. The results have been striking: after the HST reduction, Ontario saw 8,400 new home sales in just three months, compared to 3,600 in the same period annually. If the HST rebate and the reduced development charges were made permanent, it could offer the kind of stability that buyers, builders, and local governments need to make real progress on affordability and housing supply. These shifts are essential to watch, whether you’re looking to buy, sell, or invest in our evolving market.
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