Purpose-built rentals get a second boost
The announcement also triggers Phase 2 of Toronto’s Purpose-Built Rental Housing Incentives program, which provides an indefinite deferral of development charges for rental projects committing a minimum of 20% affordable units.
The first phase, launched in fall 2024, supported more than 8,000 rental homes, including more than 2,000 affordable homes.
The new phase targets up to 10,000 additional rental homes, with a minimum of 2,000 affordable units, with shovel-ready projects reviewed on a rolling basis.
Whether savings reach buyers is another matter
Not all observers are confident the reductions will translate directly to lower prices. Matthew O’Neil of Connolly Capital, a Toronto-based mortgage broker who spoke to Canadian Mortgage Professional when the Carney-Ford development charge framework was first announced in March 2026, flagged the risk that builders could absorb the relief without passing it through to purchasers.
“In theory, if the builders are paying less in development charges, they should pass on those savings to the consumer,” O’Neil said, “but builders could decide to say, ‘We’re saving on development fees, but we’re not passing those savings off.’ They have every right to do so, but then they’re not going to sell any homes because it’s still too expensive.”