BREAKING: BoC Holds Interest Rate For Second Time In A Row

Development Charges (DCs)

Learn about development charges in Canadian real estate — what they fund, who pays, and why they’re key in urban growth.

Development Charges (DCs)

July 27, 2025


What are Development Charges?

Development charges (DCs) are fees imposed by municipalities on new developments to help fund infrastructure and services required due to growth.

Why Development Charges Matter in Real Estate

In Canadian real estate development, DCs ensure that growth-related costs are shared by new developments rather than existing taxpayers.



DCs fund:
  • Roads and transit
  • Water and sewer systems
  • Parks and recreation facilities
  • Libraries and emergency services



Understanding DCs helps developers budget accurately and assess project feasibility.

Example of Development Charges in Action

The developer factored in development charges when budgeting for the new 100-unit condo project.

Key Takeaways

  • Fees levied on new development
  • Fund infrastructure and community services
  • Applied at municipal level
  • Significant cost in project budgeting
  • Supports growth management

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Moving Day: January 2026 Industry Hires And Promotions

Moving Day: January 2026 Industry Hires And Promotions

From left: Thomas Fyfe, QuadReal; Kayleigh Johnson, Peterson; Jason Kraatz, Hopewell Residential; Jessica Arbour, Wesgroup; Wylen Wong, Translink; Karen Cvornyek, Arcadis

You like to be in the know. We know.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in January 2026:

Keep Reading Show less

Vancouver To Develop Affordable Multiplex Via Housing Design Catalogue, Federal Funds

Vancouver To Develop Affordable Multiplex Via Housing Design Catalogue, Federal Funds

The “BC Fourplex 01” concept from the Housing Design Catalogue. (CMHC)

Last week, Vancouver City Council greenlit a new social housing project that will be undertaken using a series of tools introduced, in recent years, by the Government of Canada.

The project is set for 3122 SE Marine Drive, at the intersection with Kerr Street near the Fraser River and River District.

Keep Reading Show less

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

Rendering of 9 Shortt Street/CreateTO, Montgomery Sisam

Toronto City Council approved zoning for about a dozen housing projects at its February session — held last week — and of those, three will be rolled out under the new Toronto Builds policy framework.

Toronto Builds, approved in May 2025, consolidates the eligibility criteria and requirements of Housing Now, ModernTO, and the parking-to-homes and public developer initiatives. A CreateTO progress update from July identified 36 sites that will be developed under the unified framework, including the three that have just been green-lit by Council.

Keep Reading Show less

Home Relocation Project Brings 17 Affordable Rentals To Sunshine Coast's shíshálh Nation

Home Relocation Project Brings 17 Affordable Rentals To Sunshine Coast's shíshálh Nation

Renewal Development

Via Renewal Development and Wesgroup, 17 affordable rental homes are now in the hands of the shíshálh Nation — marking the completion of a project that addresses the community’s housing needs while creating local opportunities.

Like many communities across British Columbia, the shíshálh Nation has been facing a housing crisis. This project tackles that issue head-on while supporting local economic development: roughly 70% of its construction work was carried out by shíshálh Nation entrepreneurs, providing jobs and skills training within the community.

Keep Reading Show less

Build Canada Homes Pulls From Public, Private Sectors For Exec Team

Build Canada Homes Pulls From Public, Private Sectors For Exec Team

Valesa Faria (left) and Jeffery Coles (right) have joined the Build Canada Homes executive leadership team.

The economy may be acclimating to tariffs and interest rate pain has eased (for now), but Canadian housing remains sorely in crisis. Against that backdrop, Build Canada Homes (BCH) has its work cut out for it, and the agency is forging ahead with the appointments of Valesa Faria and Jeffery Coles to its executive leadership team.

While Faria will be stepping into the Senior Vice President of Partnership and Development role later this month, Coles assumed the Senior Vice President of Investments post in January.

Keep Reading Show less

GTA Home Sales, Prices Expected To Hold Steady In 2026: TRREB

GTA Home Sales, Prices Expected To Hold Steady In 2026: TRREB

Shutterstock

After years of volatility, the GTA housing market is entering a holding pattern.

That’s the takeaway from the Toronto Regional Real Estate Board’s 2026 Market Outlook and Year in Review, which forecasts relatively stable home sales and prices this year, as improved buyer choice and affordability continue to be weighed down by cautious consumer sentiment.

Keep Reading Show less

Confident In Office, Europro JV Buys 7.8-Acre Yonge Corporate Centre From Cadillac Fairview

Confident In Office, Europro JV Buys 7.8-Acre Yonge Corporate Centre From Cadillac Fairview

The Yonge Corporate Centre at 4100–4150 Yonge Street in Toronto. (Europro)

After first listing the Yonge Corporate Centre three years ago, pulling the listing, then re-listing the property this time last year, Toronto-based Cadillac Fairview has finally completed a sale of the sprawling office property.

In late January, Toronto-based commercial property management company Europro announced that they had partnered with Arista, Fieldgate Commercial, and Paradise Commercial to acquire the Yonge Corporate Centre, but did not disclose details about the transaction or ownership split.

Keep Reading Show less

Preparing Your Home For Sale: The Complete Guide

Preparing Your Home For Sale: The Complete Guide

Unsplash

This article was written and submitted by Cameron Levitt, a Toronto-based real estate agent with RE/MAX Hallmark who writes about housing dynamics, market trends, and offers practical advice for buyers and sellers.

You wouldn't show up to a first date in dirty clothes, or walk into a job interview with your CV scribbled on a napkin. So why would you sell your biggest asset without the same level of care?

Keep Reading Show less
Privacy Policy About Us Terms of Use Advertise with Us Jobs Contact Us RSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved