Understand what closing costs are in Canadian real estate, what they include, and how much buyers and sellers should expect to pay at the end of a transaction.
Closing costs are the various fees and expenses that buyers and sellers must pay to finalize a real estate transaction, separate from the property’s purchase price.
Why Closing Costs Matter in Real Estate
Closing costs are a critical part of budgeting for any real estate transaction in Canada. These costs typically range from 1.5% to 4% of the purchase price and include a variety of fees such as legal expenses, land transfer taxes, title insurance, appraisal fees, and mortgage-related charges.
For buyers, understanding and preparing for closing costs helps avoid last-minute financial surprises and ensures a smoother transition to homeownership. For sellers, certain closing costs – like legal fees, commissions, or mortgage discharge penalties – can impact net proceeds.
In some provinces, additional costs like property taxes, utility adjustments, and GST/HST may also apply. First-time buyers may qualify for rebates on certain costs, such as land transfer tax. Buyers are advised to review a full breakdown of these fees with their lawyer or mortgage advisor well in advance of the closing date.
Accurately estimating closing costs is crucial for affordability planning, loan qualification, and ensuring sufficient funds are available on the day of closing.
Example of Closing Costs
A first-time buyer in Toronto purchases a condo for $700,000. Their closing costs include legal fees, land transfer tax, title insurance, and other adjustments totalling approximately $17,500.
Key Takeaways
Include legal, tax, and lender-related fees required to finalize a purchase.
Typically range from 1.5% to 4% of the purchase price.
Must be paid on or before the closing date.
Vary by province and property type.
Essential for budgeting and affordability planning.
A construction loan is a short-term, interim financing option used to fund the building or major renovation of a property, with funds disbursed in. more
A certificate of occupancy is an official document issued by a municipal authority confirming that a building complies with applicable codes and is. more
A bylaw variance is official permission granted by a municipal authority allowing a property owner to deviate from local zoning or building bylaw. more
Corporate restructuring refers to the reorganization of a company’s operations, assets, or liabilities, often under court supervision, to improve. more
A consumer proposal is a formal, legally binding agreement in Canada between an individual and their creditors to repay a portion of their debt over. more
At yesterday's session, Toronto City Council adopted a motion from Mayor Olivia Chow to exempt all units in sixplexes from costly development charges and parkland dedications. Chow's recommendation upped the ante on a previously proposed motion from Councillors Jamaal Myers (Ward 23 - Scarborough North) and Josh Matlow (Ward 12 - Toronto-St. Paul's) seeking to eliminate these fees for the first four units in a multiplex.
"I would like to thank Councillors Myers and Matlow for bringing forward this item to make it easier and more affordable to build sixplexes in our City," read a letter from Chow submitted under the item on Tuesday. "[...] As a City, we can do even more to make these projects viable. For that reason, I am recommending we go further and exempt all units in a sixplex from development charges."
Development charges (DCs) are taxes that builders pay to a city in order to help fund increased infrastructure needs that may be required as a result of growth, including services like roads, transit, water, and sewer systems. But over the last 15 years, DCs in the region and across the GTA have skyrocketed, placing additional strain on already struggling development pipelines.
In Toronto, DCs for both one- and two-bedroom non-rental units increased roughly 42% year over year between August 2023 and June 2024. Going back further, DCs on these unit types increased from $4,985 and $8,021 in May 2009 to $52,676 and $80,690, respectively.
When it comes to sixplexes, DCs have presented a unique conundrum for developers. For multiplexes up to four units (fourplexes), DCs have been waived by the City as of 2022, but when a project adds a fifth or sixth unit, the developer is then expected to pay for all six units. This disincentivizes five- and sixplex developments, even on lots where they are viable.
This also dilutes the effectiveness of zoning reforms intended to increase missing middle housing options, such as City Council adopting a motion to permit sixplexes as of right in nine wards last month. The reform, albeit, was a picked-over version of the originally recommended city-wide permittance of sixplexes — one of the 35 milestones committed to under Toronto's December 2023 Housing Accelerator Fund (HAF) agreement with the federal government, for which the City is supposed to receive $118 million in annual funding over four years.
In total, Toronto has agreed to receiving $471 million to put towards achieving its goal of 60,980 net new permitted homes over the next three years, but securing the funds will be dependent on the city's ability to reach its milestones, one of which was approving sixplexes city wide.
At yesterday's council meeting, however, Councillor Stephen Holyday (Ward 2 - Etobicoke Centre) raised concerns over the clarity and interpretation of the language used in the City's HAF agreement with the federal government. Holyday pointed out that the milestone in question only asks for staff to consider a report on permitting sixplexes city wide, while communications from the feds indicate that they expected the City to approve sixplexes city wide.
In a letter dated March 11, 2025, then-Housing Minister Nathaniel Erskine-Smith had stated that if the City failed to permit sixplexes city wide by an extended deadline of June 30, 2025, the feds would withhold 25% (around $30 million) of Toronto's annual funding.
Then, in response to Council voting against city-wide sixplexes last month, the new Minister of Housing, Gregor Robertson, sent a letter to Mayor Chow this Monday expressing his disappointment over Council's vote saying, "the June 25 council vote goes against the level of ambition that was committed to in our Housing Accelerator Fund Agreement by the City of Toronto," and reiterating the risk that the City could miss out on funding.
"I will make no compromises when it comes to the integrity of the [HAF program] or on the level of ambition each agreement requires," wrote Robertson. "[...] Canada is in a housing crisis and we need all levels of government to do everything in their power to respond. A key federal expectation for HAF is to increase as-of-right zoning in low-density urban areas across the country. Our expectation is that larger cities facing greater housing supply challenges would go further, like what we have seen in Vancouver and Edmonton."
Towards the end of the letter, Robertson appears to extend the sixplex deadline to the next annual report of December 20, 2025, at which point, he expects Toronto to "implement an appropriate solution."
During yesterday's question period, prior to the vote on Chow's motion, Councillor Myers asked how the City plans to continue meeting HAF targets without legalizing sixplexes city wide. Deputy City Manager of Development and Growth, Jag Sharma, answered saying that the City is working on a response to Minister Robertson to provide "an update to [the] HAF deliverables that would be acceptable to CMHC and the federal government." But in the case that the feds demand that Toronto legalizes city-wide sixplexes, and Council votes against it once again, there is no current plan for ensuring funding it still received in full.
Today's decision to waive DCs and parklands dedications for sixplexes represents a step in the right direction. The move will make the development of these missing middle-type homes more feasible for builders and, ultimately, more affordable for end users, however, it still falls short of the milestone Toronto had committed to achieving in its HAF agreement signed in December 2023.
Slate & Ash by Pennyfarthing set for Ash Street in Vancouver. / Pennyfarthing
In February, the BC Financial Services Authority (BCFSA) announced a new pilot program that would extend the "early marketing period" for large presale projects, in an attempt to give developers more time to get the presales they need to secure construction financing and get shovels into the ground.
Under the Real Estate Development Marketing Act (REDMA), developers are required to secure their building permit 12 months after they file the disclosure statement that allows them to begin selling their project. Generally, lenders require developers to sell somewhere between 60% to 80% of the units with a certain profit margin for construction financing.
Over the years, however, average project sizes have increased, thus the average amount of units in a project has also increased, but the presale period has remained at 12 months. This regulation was introduced by the Province as a consumer protection mechanism to ensure that presale purchasers get their homes in a reasonable timeframe, but British Columbia is the only province in Canada with this kind of regulation and it has forced developers to be extremely cautious about when to launch presales. If a project launches and fails to hit its presale target in 12 months, the effects can be crippling, as seen with CURV.
To address this, the BCFSA's new pilot program extends the presale period from 12 to 18 months for projects with 100 or more units and in-stream projects — projects that had already started their clocks — were also eligible. Upon inquiry, the BCFSA told STOREYS last week that a total of 22 projects have secured the extension. According to BCFSA records, some of those projects include Onyx by Polygon, Vivere by Solterra, Sky Living by Allure Ventures, Manhattan by ML Emporio, and 102 + Park by Marcon.
"I would say that, on the MLA client side, we have not seen any clients make a go-decision purely based off of that REDMA extension," says Garde MacDonald, Director of Advisory at presale marketing and sales firm MLA Canada. "I would also say that it hasn't made a difference in the market. The way that I would put it is 'too little, too late.' The presale market has been very slow for about 2.5 years or 3 years, depending on the area. The fact that they brought it into play earlier this year was just a little bit too late, even though it was well-intended in theory."
Asked whether the change would've had a greater impact if there wasn't the 100-unit requirement or if the extension was to 24 months, MacDonald says he believes it would've had more of an impact if the 18-month period applied to all projects, not just those with 100 or more units.
"I think that if it applied to all projects, you would see some low-rise six-storey projects get across the line that wouldn't be able to otherwise. I think that 100-unit number felt a little cherry-picked, just given the fact that there are a lot of six-storey low-rise projects in the Fraser Valley that end up between 60 to 90 units. I think it would've made a marginal difference, but overall whether it's all projects or two years, I still don't think the fact that it came into effect this year would've made a huge improvement because of how poor the sales performance has been across the board in presale."
The Current State of the Presale Market
A rendering of 102 + Park, planned for 13525 102 Avenue in Surrey. / Marcon
MacDonald says there's been 38 presale launches (with a total of roughly 4,300 units) so far this year, which is about 25% to 35% below a normal year, which would be closer to 60 launches and 6,500 units at this time of the year. That reduced amount of launches is another indicator that the REDMA change has not really made a significant difference, says MacDonald, who adds that sales absorption is also down about 60% to 70%.
Developers are surveying the landscape and are not seeing the requisite signs that makes them confident they can sell somewhere between 60% to 80% of their units within 18 months. Thus, they are not launching. The clearest sign of this, says MacDonald, is that there has been just one single presale launch on a new concrete high-rise tower so far this year — Marcon's 102 + Park near Surrey Central Station — that isn't leasehold or the second phase of an already-in-progress project.
"I think the fact that we're seven months into the year and there's been one new concrete tower brought to market really tells you a pretty clear story of the state of affairs in presale," he said. "Unless there is financial pressure or construction timeline pressure, I anticipate the second half of the year, in terms of new launches, to be quieter than the first half. One of the reasons I say that is because many developers who look towards the fall always kind of base their decisions on what happened in the spring market. And because our spring market this year was basically a supply story with very, very little demand, I don't forsee anybody looking at the spring market and feeling confident in bringing their project to market in the fall."
MacDonald says that one of the common questions MLA Canada has gotten this year has been the level of completion risk, as in the percentage of buyers that are not completing on their presale purchases. He says that he hasn't seen anything higher than 5% and that the projects on the higher end of the price spectrum would be the ones that may have more trouble. He emphasizes, however, that usually parties involved — the buyer, the developer, the lender — all want to complete, because not completing often results in additional costs.
"What we are seeing is a lot of creativity from a lot of different lenders or developers, whether it's adding a family member to the contract or negotiating a further credit on the home. Everyone at the table wants to close on these units because if they don't, it just means more costs and more delays within the project. You may have a building of let's say 200 units and 30 people are expressing doubts about closing. The role of someone like MLA or someone at another development shop would be to approach them and try to figure out — with a developer, with a mortgage broker, with a bank — some sort of solution to get them to close. The purchaser doesn't want to lose the deposit and the developer does not necessarily want to re-list the unit in this environment."
Going fowrard, MacDonald says another factor that may affect the presale market is the surge in purpose-built rental that is set to be completed in the near-future. The Metro Vancouver region is slated to see around a 50% increase (above the 10-year average) in new rental supply this year, he says, and what that means is the flattening of average rents is likely to continue and investors could potentially feel less inclined to invest in presales and then rent them out given the increased competition in the rental market.
As for where the light at the end of the tunnel is, MacDonald says the prolonged downturn we're in could extend all the way to 2027 and that the industry may need to even rethink the existing model.
"In terms of the way out, I think it will take some form of change to the presale financing model, because with the investor class not necessarily returning, a lot of these projects that are above 250 units are going to have extreme difficulty selling 180 units in an 18-month period, unless there's either a change in the financing model or a drastic decrease in costs, and it's a little harder to decrease costs as opposed to changing that financing model. There's been a lot of different ideas thrown around, but I tend to think that with how slow policy and government moves, the light at the end of the tunnel is going to be nothing short of Spring 2027 for a normalized presale market."
In Vancouver’s Arbutus neighbourhood — where quiet charm meets central convenience — homes of 2318 Oliver Crescent's calibre rarely come to market.
Set on an exceptionally deep 8,550-sq.-ft lot, this timeless family home combines spaciousness, functionality, and thoughtful design. The address offers nearly 4,800 sq. ft of interior living space, and is framed by mature landscaping, a fully fenced yard, and a backyard built for both play and restful pause.
Inside, the home is airy and refined, grounded by white oak flooring and rich custom millwork throughout. Designed with everyday life in mind — but elevated in finish — the residence features 6 beds (two being flex spaces) and 6 baths, offering enough room for family, guests, or even multi-generational living.
The lower level, meanwhile, is fully finished with its own separate entrance, making it ideal for in-laws, teens, or a private suite.
Recent updates have ensured that the home is as comfortable as it is classic. Double-paned windows and a renewed exterior lend a fresh, energy-efficient feel, while features like central air conditioning and an infrared sauna bring a layer of modern luxury.
Step outside, and the home truly comes into its own.
The backyard feels like a private oasis — fully enclosed and landscaped to perfection, with a built-in fire pit that invites relaxed evenings under the stars. A detached three-car garage completes the property with both practicality and presence.
The west-facing backyard is a true highlight. With its spacious layout, fire feature, and lush landscaping, it’s tailor-made for relaxed evenings, garden parties, or simply enjoying a moment of quiet amid the city bustle.
The location, meanwhile, places you within easy reach of some of Vancouver’s most desirable amenities. Trafalgar Park is just a short stroll away, while top schools, boutique shopping, the Arbutus Club, and essential grocers are all close at hand.
In a neighbourhood where demand consistently outpaces supply, this is a home that hits every note — size, style, and setting.
In the rugged heart of Alberta’s Bow Valley, where wilderness meets refined living, 118 Cairns Landing stands as a rare expression of mountain luxury.
Located within Cairns Landing — Canmore’s only gated community — this estate spans more than 25,000 sq. ft of pristine alpine land and captures uninterrupted views of the Three Sisters, Ha Ling Peak, and the Fairholme Range. It’s a property that offers solitude and grandeur in equal measure, just minutes from downtown Canmore and framed by the edge of Banff National Park.
With more than 4,000 sq. ft of interior living space across the main house and a private one-bedroom guest residence, the home marries timeless materials with clean, contemporary form. The great room anchors the design — a soaring, open-concept space that spills onto over 1,000 sq. ft. of elevated outdoor living. Whether you're catching the first light on the peaks or winding down with guests over a glass of wine, this space is calibrated for every season, every hour.
Inside, the home’s interiors are restrained but striking: natural textures, tailored finishes, and expansive glass walls blur the boundary between indoors and out. The aesthetic is both polished and welcoming — a place where post-ski evenings and summer barbecues feel equally at home.
Rare for the region, the home also boasts a private outdoor pool — an unexpected resort-style indulgence in a mountain town known for its wild terrain. The outdoor areas are oriented with care to maximize sun exposure and alpine vistas, while maintaining the privacy that defines the gated Cairns Landing enclave.
The heated outdoor pool is an uncommon — and unforgettable — feature in the Bow Valley. Positioned to soak up both sun and sweeping views, it’s the kind of detail that transforms a mountain getaway into a year-round lifestyle.
Practicality hasn’t been overlooked either. A heated five-car garage ensures room for vehicles, adventure gear, and collectible toys, while a separate guest house provides autonomy and comfort for visitors or extended stays.
The location is as much a part of the story as the home itself. Just steps from the Bow River pathway and minutes to world-class fly fishing, biking trails, and untouched backcountry, this estate places Canada’s most iconic wilderness at your feet — with the town’s best restaurants, cafés, and shops only a short ride away.
Designed as a legacy home for those who seek alpine quiet without compromise, 118 Cairns Landing offers an unmatched mix of architecture, setting, and access.
1451 Wellington Street West as of October 2024/Google Maps
Around nine months after filing for creditor protection, Mizrahi Development Group is now looking to renegotiate presale contracts with respect to its luxury condo development at 1451 Wellington Street West in Ottawa, also known The Residences at Island Park Drive.
The 12-storey, 93-unit development coming up in Westboro, owned by WellingtonCo, was started back in 2015 and is now in the final stages of construction with just interior finishing and cladding and roofing work still to be done. To date, all the necessary permits and approvals for the project have been secured except the occupancy permit and condominium registration.
The project's original competition date was November 2023, but suffered major delays attributed to “cost overruns due to construction challenges, the COVID-19 pandemic, market conditions, and increased costs for goods and services,” according to a July 9 report from the Monitor in the CCAA proceedings, MNP Ltd. Phased occupancy is now expected to commence in September 2025 and completion is projected for February 2026.
The Monitor also notes that WellingtonCo has presold approximately 72 units — representing just over a 77% of the 93 units — since 2017, and that deposits related to those presales amount to around $14.8 million. That sum is insured by Westmount Guarantee Services Inc.
Renderings of 1451 Wellington/Mizrahi Developments Group
A majority of the presale agreements were reached in 2017 and 2018, however, and new condominium prices in Ottawa-Gatineau have "increased significantly," the Monitor notes. Thus, Mizrahi Developments, with support from the Monitor and the Mizrahi's realtors on the project (PMA Brethour Realty Group), is now seeking to renegotiate the terms of the existing presale agreements so they reflect current market conditions and "to determine whether incremental value can be realized for the benefit of stakeholders."
In a July 14 sworn affidavit, one of the presale purchasers expressed concerns regarding the termination and disclamation process, saying that he entered into a sales agreement in March 2017 for $1,156,990, paid deposits in the amount of $231,4000, paid $59,109 for upgrades, and that he’s since relayed to Sam Mizrahi that he is not in a position to pay the new updated price.
According to the affidavit, Mizrahi told the buyer in May 2025 that the cost to construct the building was approximately $1,200 per sq. ft. If the updated price is close to that, it would represent an increase of 50% to 60% on the original price, the buyer said, adding that he was concerned about “how much risk the deposit and interest would be exposed to” and “the timeframe for the return of the deposit.”
Nonetheless, the Monitor and Mizrahi received court approval to proceed with their plan on July 15.
Since the project was placed under creditor protection on October 15, the court has granted three stay extensions that have allowed the company to restructure, consult with stakeholders — including unit purchasers — and pay trades, subtrades, and suppliers. Most recently, the court extended the stay to September 30.
STOREYS reached out to Sam Mizrahi of Mizrahi Developments for comment when the CCAA proceedings commenced in October 2024, at which time he said that his company is “committed to ensuring all its projects and developments consistently exceed customer expectations without compromising standards and quality."
In addition, Mizrahi underscored that many of his projects “have been successfully completed and registered to date with no claims of warranty or otherwise." He cited 133 Hazelton, 181 Davenport, 128 Hazelton, and the Lytton Park Townhomes, as well as the company's portfolio of single-family residential projects.
It’s unclear if amended sales agreements have been provided to purchasers of 1451 Wellington at this time. Sam Mizrahi has been contacted for clarification by STOREYS.
High-rise towers under construction in Burnaby in 2022. / StandbildCA, Shutterstock
Around this time last year, something very interesting started to happen: developers across the country started to take aim at the development fees that governments levy on new construction and use to fund infrastructure projects. There has been varying levels of success, but what's undeniable is that there has been a sentiment shift around these fees.
Here in British Columbia, the story really begins in Fall 2023, when the Metro Vancouver Regional District (MVRD) revealed that it was raising its development cost charges (DCCs) — in some cases doubling or triping the existing rates — which vary depending on location and property type. Despite pushback from federal Minister of Housing Sean Fraser at the time, the MVRD approved the increases, but agreed to implement the increases in phases on January 1 of 2025, 2026, and 2027.
After the increases were pushed through, all parties appeared to move on and the conversation died, until a group of prominent developers — Wesgroup, Polygon, and Anthem, among others — launched a letter-writing campaign in September, taking aim at the forthcoming increases. The developers were unified in asking for a series of changes, many of which have since come to fruition.
DCCs
Earlier this month, the Province announced legislative changes to allow 75% of DCCs to be paid upon occupancy or within four years, instead of paying it all upfront and within two years. Another change expanded the use of surety bonds for such payments, which developers often prefer to use instead of letters of credit. The Province also announced this month that it was extending the in-stream protection period for the MVRD's DCCs from one year to two years. On the local level, Vancouver approved a series of changes last month to also expand the use of surety bonds and to change the timing of when payments are collected.
Governments are showing a strong willingness to make these kind of changes and both Brad Jones, Chief Development Officer at Wesgroup Properties, and Rob Blackwell, Executive Vice President of Development at Anthem Properties, tell STOREYS that they have seen a sentiment shift around development fees over the past year — with some caveats.
Jones said he believes development charges started to get really bad around 2018. The City of Vancouver introduced Utility DCLs — DCCs are called development cost levies (DCLs) in Vancouver — in 2018, after the City realized it had a big infrastructure deficit, and the fees continued escalating from there before hitting a breaking point in 2022.
Metro Vancouver total DCC rates for 2025, 2026, and 2027. / Metro Vancouver
"That's when viability started breaking — in 2022," said Jones. "Revenues had gone up a lot — costs and revenue kind of move together and offset each other — and a lot of the sentiment among governments was that revenue was going up so we can up our fees and charges, but all that happened was viability eroded and we're seeing that now. I think we're going to see horrific housing start data when it flows through."
As for the changes governments have made recently, Jones grades them as "good, but not great." He points out that the change allowing 75% of DCCs to be paid upon occupancy or within four years doesn't come into effect until January 1, 2026, that the surety bonds change doesn't allow developers to replace existing letters of credit with surety bonds, and that the fee amounts are not changing like they are in other parts of the country.
Blackwell says all of the changes are welcome and "they all help to a degree," but points out that smaller developers may not be able to qualify for surety bonds and that the in-stream protection for Metro Vancouver DCCs, even after the extension, ends in March 2026, after which the rates jump up to the previously-planned 2026 rates.
"I think what you'll see is projects will just stop again, because they can't afford to pay those new rates," said Blackwell, who adds that the in-stream protection extension is only occurring because it was a condition of the $250 million in funding that Metro Vancouver is receiving via the Canada Housing Infrastructure Fund, as first reported by STOREYS.
CACs and ACCs
Another longstanding development fee in BC is community amenity contributions (CACs), which many local governments charge on new projects that require rezoning. These have historically been subject to negotiation between the local government and the developer, prompting the Province to create amenity cost charges (ACCs), which are intended to have set rates and replace CACs.
Although Burnaby and Coquitlam have introduced ACC programs, most local governments are still in the process of making the transition. Last month, however, Langley-based Lorval Developments won a lawsuit against the Township of Langley over its CAC policy. Surprisingly, the Supreme Court ruled in favour of Lorval and declared the Township's CACs policy as invalid and beyond its legal authority, calling into question all CAC policies in BC.
Lorval Developments Ltd. v. Township of Langley
In an interview with STOREYS earlier this month, Lorval Developments President & CEO Thomas Martini says they were planning a business park, film studio, and commercial space on about 70 acres of land that was designated for employment use. However, after the 2022 municipal elections brought in a new Council, the Township opted to update the Williams Neighbourhood Plan and introduce a CAC policy, resulting in Lorval being charged with nearly $40 million in CACs, which are not usually levied on commercial projects and made their project unviable.
Martini said there was no opportunity for discussion with the Mayor and Council, prompting Lorval to file its civil suit. Lorval is now reassessing the project and how to proceed. Martini says he believes that the ruling affects any CAC that any City has been charging and that the Province likely views the ruling as a positive because it encourages municipalities to transition to ACCs.
"What I think is important to highlight is that the Mayor and his slate took a gamble. When they ran in the last election, they were very clear that one of their main mandates was to have developers pay for soccer fields, and hockey rinks, and other amenities. I think that gamble hasn't paid off and I imagine they're quite embarrassed by that, because now they have to find the dollars to pay for the money they borrowed."
The Urban Development Institute says the implications of the ruling — which can still be appealed — could be significant and that they are reviewing the case. Both Jones and Blackwell say that the implications of the ruling remain to be seen, but could very well also become moot as local governments continue to phase out CACs and switch to ACCs.
"I think across the board, I've been surprised at how high the [ACC] rates are," said Jones, commenting on some of the ACC programs he has seen. "So far, the ones that have published projected rates have not really done a fulsome financial analysis, and I think that's a really important part of the process and legislation, because if you're doing those rates based on the market today, they're not viable. The municipalities are struggling to reconcile that because they all are trying to deliver amenities. But 100% of nothing is still nothing, so the rates need to be set in a way that we can deliver housing, because right now the cost of delivering new housing is more than the market will pay."
Will The Changes Make A Difference?
Both Jones and Blackwell say the changes that have occurred are positive, are welcome, and may help some projects, but are not enough to have a significant industry-wide impact that changes the market. Other costs such as those associated with land, financing, and construction have settled down recently, but the biggest cost remains development fees and none of the changes seen so far are going as far as to lower the actual amount of the fees.
"A fee that isn't viable still isn't viable whether you change the day of payment," said Jones. "The date of payment will help and it will help projects that are in-stream and trying to go ahead, but it isn't in a meaningful way changing the viability of projects. It's still a cost to the project and it's a really high cost. What you're doing is just moving the payment date and knocking the interest off. It's a meaningful amount of money, but it's not gonna take a project that's not viable and make it viable."
"Everything shifted and most project opportunities became non-viable when the Metro Vancouver DCCs went through," Jones added. "The theory is that it would reset the land market and land values would come down, but that's a misconstrued understanding because there's other things you can do with land. What's happening right now is sites — predominantly TOD sites — are worth more in their existing commercial retail uses than they are as a redevelopment, because of the fees and charges. We're having those conversations around the region right now where it makes more sense to leave a site as an existing strip mall or grocery-anchored shopping centre. That's a more financially-prudent decision, and higher land value, than it is to go undertake a multi-billion-dollar development. It's really undermining the provincial efforts around TOD."
Wesgroup Chief Development Officer Brad Jones (left) and Anthem Executive Vice President of Development Rob Blackwell (right). / LinkedIn
For Blackwell, he says another aspect of the problem is the lack of coordination between different levels of government. As one example, he points out that Metro Vancouver pushed through the DCC increases in 2023 a month after the Government of Canada eliminated the GST on new rental construction. That kind of "one step forward, one step back" situation is still happening, he says, such as the Province's increased sustainability and adaptability requirements, which adds more costs than these tweaks save.
"I don't think anyone argues with the intent, because on its own, it makes sense, but you have to sort of balance it with everything else that is going on and be practical about it. It's not going to be one thing that's going to change everything, it's going to be an accumulation of different things that make a difference. For that reason, these changes are welcome, but to save money here and wipe it away by spending money in a different area, you're neutral and you're not making any progress."
"The in-stream protection helps those in-stream projects because they were underwritten with an understanding of what the rules are, and then the rules changed," he adds. "So you go back to what those rules are, and that helps make those projects perform as they were originally planned to perform, as opposed to under a new set of rules, but with new projects that are under a new cost regime, those are the projects that aren't moving forward."
The real problem, both Jones and Blackwell say, is the way infrastructure is funded, which is generally through the collection of development fees and property taxes. Because raising property taxes is tantamount to political suicide, the financial burden disproportionately falls on new construction. 'Growth pays for growth,' as many governments say. There is a glimmer of hope, however, as the Liberals pledged during the election to lower development fees and support infrastructure. When that comes to fruitition is unclear, but time is clearly of the essence.
In a "near-historic low," just 510 new homes were sold last month, up from a measly 345 in May — however, that figure was higher than it was in any month since the beginning of the year. Still, June's sales remain 60% below June 2024 and 82% below the 10-year average. For reference, a typical June would have seen around 2,801 new homes sold — more than five times the sales recorded last month.
June's weak numbers are no outlier, coming amid what BILD has called "the worst downturn of new home sales in the region on record." Sales hit record lows multiple times in 2024 and this May marked the eighth consecutive month of record all-time lows, as higher interest rates, affordability issues, and economic uncertainty have slowed demand to a trickle.
Altus Group
“June 2025 new home sales across the GTA extended the prolonged downturn plaguing the new home market” said Edward Jegg, Research Manager at Altus Group. “Consumers are lacking the confidence to enter into one of their largest purchases as the economic uncertainty centred largely on US tariff policies weighs heavily on potential homebuyers.”
BILD President and CEO David Wilkes also highlights that alongside a downturn in demand, high development costs in the GTA are putting further strain on an already struggling industry.
“This is not a healthy or sustainable environment," he says. "[...] To revitalize the market — a sector that is critical to Canada’s economic health — we need bold, immediate action from all levels of government. That includes measures like significant GST relief and broadening the work we have seen on DC reductions so far."
In recent months, a number of municipalities in the GTA have lowered development charges, including Vaughan, Peel, and Mississauga, while Toronto will vote later today on whether or not to exempt sixplexes from development charges. Still, many feel more reform is necessary or that development charges should be eliminated entirely.
"Without urgent intervention," says Wilkes, "the future housing supply and economic wellbeing of the GTA is at serious risk.”
Of the 510 sales recorded in June, 217 were condominium apartments, down 67% from June 2024 and 89% below the 10-year average, while 293 were single-family home sales, down 53% year over year and 62% below the 10-year average.
With sales low, listings continued to pile up last month, hitting 22,254 units made up of 16,696 condominium apartments and 5,558 single-family homes. This marked a slight increase from the 21,571 units listed in May and represents a combined inventory of 19 months — the highest inventory level seen to date, according to BILD's records.
Altus Group
On the price front, the benchmark price for condo apartments was $1,028,527, showing "no material change" from last June, while single-family homes fell 6.4% year over year to $1,510,126. Month over month, condo prices increased from $1,021,339 in May and single-family homes ticked up from $1,505,539.
Set high on a hillside in the rolling countryside of Erin, Ontario, 9255 Sideroad 27 isn’t just a home — it’s a fully realized estate.
Stretching across 46 acres of panoramic land, the property is an ultra-private retreat where English gardens meet classic architecture, and where every inch has been crafted for both grandeur and comfort.
From the moment you pass through the gated entrance and follow the winding, lamp-lit driveway, it’s clear that this is a rare offering.
The custom-built residence spans more than 7,000 sq. ft and has recently undergone a top-to-bottom renovation — with no expense spared. Its classic profile is set against a lush backdrop of colourful perennial beds, intricate stonework, and cascading fountains, all positioned to draw the eye toward the valleys below.
Inside, the home opens with a dramatic two-storey foyer and sweeping curved staircase. A double-tiered formal living room sets the tone for sophisticated entertaining, while a separate dining room and sunken family room offer distinct zones for gathering. An elevated oak-panelled office floats above the main level, accessed by a sculptural staircase that adds architectural flair.
At the heart of the home sits a chef-calibre kitchen by Woodland Horizon, featuring floor-to-ceiling maple cabinetry, quartz countertops, a nine-foot island, and a full suite of premium appliances. A casual dining area with a built-in coffee station completes the space — perfect for early mornings or unhurried weekends.
Upstairs, the primary wing is a sanctuary unto itself. A large sitting room with fireplace, expansive ensuite with six-piece layout, walk-in closet, and dedicated home office make it ideal for those seeking a private, self-contained retreat. Two additional bedrooms and a five-piece bath complete this level's R&R offering.
On the opposite side of the home, a west wing opens up new possibilities for multigenerational living. This space includes a second full kitchen, three additional bedrooms, a den, and a grand great room with its own balcony and private views. Ideal for extended family, in-laws, or long-term guests, the layout offers independence without compromising on style or amenities.
The layout is a masterstroke of flexibility — whether you’re accommodating extended family, hosting guests, or carving out private work-from-home quarters, the west wing opens up endless possibilities without sacrificing cohesion or style.
And finally, the exterior is nothing short of resort-worthy. Anchored by a 20-x-40-ft saltwater pool and hot tub, the backyard features a full outdoor kitchen, dedicated pool house, change room, and four-piece bath. A series of decks, patios, and gazebos take full advantage of the sweeping vistas, offering countless spots to lounge, dine, or simply watch the sun set over the hills.
With a heated four-car garage, workshop space, and impeccable finishes throughout, this countryside estate offers scale, serenity, and substance, all in equal measure — a turnkey retreat just over an hour from Toronto.