Explore how interest rate differential (IRD) penalties work in Canada, when they apply, and how to avoid costly surprises when refinancing or selling early.
Interest Rate Differential (IRD) is a prepayment penalty charged by lenders when a borrower breaks a fixed-rate mortgage before the term ends, calculated based on the difference between the original and current rates.
Why Interest Rate Differential (IRD) Matters in Real Estate
In Canada, breaking a fixed-rate mortgage early—such as to refinance or sell the home—can trigger substantial penalties. The IRD is designed to compensate lenders for lost interest income.
IRD is generally calculated as:
(Original rate - Current rate) × Mortgage balance × Remaining term
This often results in a higher penalty than the alternative 3-month interest fee. Borrowers should carefully review prepayment clauses and ask lenders how IRD will be calculated before signing a mortgage agreement.
Some lenders use posted rates instead of actual contract rates in their IRD formulas, which can inflate the penalty.
Understanding the IRD is crucial for homeowners considering early refinancing or relocation. Comparing mortgage flexibility—not just interest rates—can lead to significant savings in the long run.
Example of Interest Rate Differential (IRD)
A homeowner breaks a fixed mortgage with 2 years remaining. Because rates have dropped, the lender calculates an IRD penalty of $5,400 based on the difference between the contract rate and the current rate.
Walkability refers to how friendly an area is to walking, measured by the accessibility of amenities, safety, sidewalk infrastructure, and overall. more
Transfer of ownership is the legal process by which the title of a property is passed from one party to another, typically through sale, inheritance,. more
Site remediation is the process of cleaning up contaminated land to meet environmental standards and make the property safe for use or redevelopment.. more
A rental suite is a self-contained living unit within a home or property that is rented out to a tenant, commonly located in a basement or accessory. more
The Marine Landing stacked industrial project at 8232 Manitoba Street in Vancouver. / Wesbild
Construction has completed on the high-profile "stacked industrial" project in Vancouver known as Marine Landing, but STOREYS has learned that post-completion disputes over washroom requirements have created friction among buyers, the City, and the developer.
Marine Landing is a unique strata industrial and office development comprised of two buildings with industrial space on the lower levels and office space on the upper levels. The project is located at 8232 Manitoba Street, just south of SW Marine Drive and about a 10-minute walk away from Marine Drive Station.
The project was developed by Vancouver-based developer Wesbild and Toronto-based private equity real estate firm KingSett Capital, with Colliers and Rennie handling sales. According to the project website, industrial units start at $519,900 while office space starts at $589,900. A press release published by Wesbild in April announcing construction completion said that Marine Landing has a total of 242 units, with 63% of industrial units and 40% of office units already sold.
Both buildings are approximately 170,000 sq. ft, with individual units available in a range of sizes, and the complex is more akin to a mall with space open to the public — including a new Breka Cafe — than a traditional private industrial building. The building also includes amenities such as a rooftop deck, dog park, amenity rooms, fitness centre, and end-of-trip facilities for cyclists.
A rendering of Marine Landing, with office space above different kinds of industrial space. / Wesbild
The issue at the heart of the conflict? The washrooms, or lack there of.
According to an industry source familiar with the situation, after construction completed in April, strata unit purchasers were informed by the City that each unit is required to have its own washroom. Washrooms were not constructed for individual units and some buyers are now upset that they have to cover the additional cost. (The building does have large shared washrooms.)
Upon first glance, it may seem like the fault lies with the developer for not including washrooms, or with the City for approving the design despite washrooms not being part of the plan, but the greater story is more a lesson in due diligence and how buying commercial space works.
"Like most commercial buildings in Vancouver, 8232 Manitoba Street was constructed as 'shell' space under the Vancouver Building By-law, so that tenants can complete the interior construction to their own specifications," said the City of Vancouver in a statement provided to STOREYS. "As a result, a new tenant would need to apply for and obtain their own building permit to construct or finish the interior layout. The number and placement of washrooms are determined during the Tenant Improvement (TI) stage, based on how each strata lot is reconfigured. Because the final layout and occupancy of the space are unknown at the time of the base building construction, washroom requirements are assessed and addressed during the TI process."
The City added that the Vancouver Building By-law determines the amount of required washrooms based on the occupant load and not the size of the unit and that the developer "chose to defer installing washrooms within each unit to give tenants the flexibility to customize the shell space layout to suit their specific needs."
A shared washroom within one of the Marine Landing buildings. / EDIT Studios, LinkedIn
In an interview with STOREYS on June 24, Wesbild President & CEO Kevin Layden confirmed this, adding that the specific requirement is one washroom for any business between one and 25 employees. Layden noted, however, that the City's Building By-law was written for traditional — larger — industrial spaces and not the more compact spaces at Marine Landing that they built for small businesses.
"I don't think it was ever contemplated that there would be 600-sq.-ft industrial units when they wrote the By-law," said Layden. "One piece of what we're doing is to spend some time with the City to see if we can get that modified a bit. But having said that, in all of our agreements, all of our communications, the purchase and sale agreement and the information sheet says that the buyer is supposed to do due diligence. And depending on the use, they would go to the City of Vancouver and confirm their use is available for what they're looking to do, so that's really on the purchaser, like with anything you buy. Our agreements say very clearly that we will deliver a shell unit to the purchaser, whether it's the industrial or office space."
"It's very similar to commercial development, where if you build a shopping centre and you build a [commercial retail unit] between a grocer and a drug store, then whoever moves in there does the TI and the TI includes a bathroom of some sort, depending on what kind of use the space is gonna take," he added. "In each one of the building units that we have at Marine Landing, there is a sanitary connection in every unit at the top, so you have to core to the floor to hook up the toilets if you buy a unit and you need to put a washroom in. We don't put the washrooms in because depending on what the use of the unit is, the tenant is gonna put them in different areas. If it's a dentist, they may put a washroom up front. If it's just a standard office, then they may put it in the back of the unit. When you buy commercial spaces, that's how they come. It's a very standard procedure."
The floorplan for Level 3 of Marine Landing, the sizes of the units, and the units that have been sold. / Wesbild
Layden acknowledged that several purchasers have voiced displeasure, but that it has been a small group of purchasers who generally have not had experience with buying industrial space for investment purposes.
Nonetheless, Wesbild has since provided purchasers of units below 650 sq. ft with two options. For those who have already started or completed their tenant improvements that include a washroom, Wesbild is providing a credit of $5,000 "to help offset the cost of scanning, coring, and sanitary connection required for one washroom." For those who have yet to commence tenant improvements, Wesbild is offering either a credit of $5,000 or to cover and complete "the base infrastructure work for one washroom (scanning, coring, and sanitary connection)," with purchasers expected to cover the remaining cost of completing the washroom.
"We recognize the scope and cost of the work required may not have been factored into your plans, specifically for the small industrial and office units under 650 square feet," said Wesbild in a letter addressed to purchasers that the company shared with STOREYS, adding that they want to "support our small unit owners and simplify this process." The letter states that purchasers will have until July 15, 2025 to respond with their preferred option.
"In my opinion, we're going above and beyond what we need to do as a developer to help bridge the gap for those people who weren't aware and didn't do their due diligence with the City of Vancouver," Layden told STOREYS. "To some degree, a lot of these people were represented by brokers, so there's also a broker [aspect] here for their clients, to make sure they help them with their due diligence."
Yesterday evening, Toronto City Council voted to allow fiveplexes and sixplexes in the Toronto and East York District and a portion of Scarborough — a significant dilution of the originally recommended city-wide legalization. This latest move from the City puts in jeopardy $471 million in federal funding through the Housing Accelerator Fund (HAF).
The Scarborough region included in the adoption is generally bound by Steeles Avenue to the north, Midland Avenue to the west, Highway 401 to the south, and Neilson Road and Rouge River to the east, where a sixplex pilot ushered forth by Ward 23 Councillor Jamaal Myers was already in place.
After much debate and deputations from speakers, the original recommendation to permit sixplexes citywide was begrudgingly amended by Parkdale—High Park Councilllor Gord Perks and was carried with 18 voting for the motion and six voting against, officially leaving the majority of Toronto's suburban neighbourhoods in Etobicoke—York, North Toronto, and Scarborough out of the sixplex fold. The motion also included that neighbourhood infrastructure such as street cleaning, public realm maintenance and improvements be provided in neighbourhoods with sixplexes.
"I'm moving this very reluctantly. I've spent a considerable amount of time working with my colleagues on Council trying to find majority support for doing what this council already committed to in 2023, which is city-wide sixplexes. But I have been unable to find that," said Councillor Perks at Council. "[...] This creates some risk in our relationship with the federal government, especially since this council voted, over two years ago, that sixplexes would be part of our [HAF] plan."
Alongside offering more housing options to Torontonians, the city-wide approval of sixplexes would have represented a major step towards achieving the City’s 35 milestones committed to under the federal HAF, for which Toronto was allocated $471.1 million in funding to be put towards "accelerating development of new housing and preserving existing housing, and achieving a total of 60,980 net new permitted homes over three years."
The City received an upfront sum of $117 million through the HAF after an agreement with the Feds was reached in December 2023, but whether or not Toronto receives the remaining funding in full hinges on it's ability to achieve certain milestones laid out in their HAF Action Plan, including permitting sixplexes city wide by the end of June 2025. This is according to a letter from former Housing Minister Nathaniel Erskine-Smith sent to Mayor Olivia Chow in March, which stated that Toronto could lose 25% of its annual HAF payment if it continues to fall behind on milestones.
Wednesday's debate marked the culmination of a series of studies conducted by City staff to discern the viability of ramping up missing middle permissions on single-detached lots within the city. One of the first major amendments to kickstart the city-wide sixplex conversation began with the original Multiplex Study in 2023, which led to fourplexes being approved city wide in May of that year. But at the time, Councillor Jamaal Myers was already calling for more density.
Following the adoption of city-wide fourplexes, Myers initiated a pilot program in his home ward of Scarborough North (Ward 23) that would test the efficacy of permitting fiveplexes and sixplexes on properties designated 'Neighbourhoods' in the Official Plan. The pilot study commenced soon after the city-wide adoption of fourplexes, and its results were promising.
Findings showed that the built form of a fiveplex or sixplex was viable on around 60% of of single-family home plots in the ward, increased density was found to optimize existing infrastructure rather than overload it, and most additional parking could already be accommodated for on residential streets. Other potential upsides included the stabilization of declining populations and support for local retail establishments and services.
More than that, intensified missing middle permissions would mean increased housing options for Scarborough residents. "It offers families a way, particularly seniors, a way to downsize while staying in these neighbourhoods," says Myers. "And it offers a lot of the kids who grew up in these neighbourhoods a way to move into and/or stay in these neighbourhoods and raise their own families in a way that they wouldn't otherwise be able to do."
While no five or sixplex permits have been issued as of now, Myers says he expects applications to come down the pipeline.
After a year and half, a preliminary report on the pilot program, delivered in December 2024, led to City Council voting to study the viability of fiveplexes and sixplexes city wide via the final multiplex study that was presented to Council yesterday afternoon.
Going into the Council meeting, Myers told STOREYS he was expecting some resistance. "I think it's going to be a push," he said. "Honestly, change is hard. People generally are hesitant to change, and the City, historically, has not done a great job at reaching out to people and explaining what we're doing."
Reflecting the highly-contentious nature of the topic, the agenda item posted a remarkable 29 speakers and 30 letters from various residents' associations, builders, planners, design studios, and more, all arguing their case for the future of Toronto's so-called 'yellowbelt.'
Speaking on behalf of their constituents, councillors debated the efficacy of sixplexes for over three hours, expressing support as well raising concerns.
“Cities grow or die, neighbourhoods grow or die. It is unique in North America that we have neighbourhoods that have never been reinvested in. Nowhere else in the world is this the case," said Councillor Perks. "If the communities in the inner suburbs want to thrive, they need to attract reinvestment, and that reinvestment comes from reforms like this.”
Councillor Alejandra Bravo (Ward 9, Davenport) focused on the funding component, inquiring what a potential loss of HAF funds would mean for other housing projects currently being carried out by the City, such as the revitalization of Toronto Community housing Corporation, transforming Toronto’s waterfront, and expanding missing middle housing.
"We would be in the situation, today, where should we not make progress on this particular item, we will be putting the people of Toronto, who are in need of housing, in peril in some way, correct?" she asked. "We’re taking a risk on the backs of people who need housing?”
Councillor Lily Cheng (Ward 18, Willowdale) who voted for the amended bill, raised concerns about preserving the character of certain neighbourhoods and about infrastructure not meeting population growth within her own ward. “With 145% growth over 20 years in my neighbourhood, we need to catch up with our infrastructure, and if we don't catch up, how can we commit to more growth?”
Additionally, the issue of land values increasing as a result of the sixplex expansion was raised by Councillor Parthi Kandavel (Ward 20, Scarborough Southwest), while others simply felt the implementation of sixplexes citywide was not necessary and was being carried out too rashly.
With school out and the sun shining, summer is typically a hot season for the Toronto real estate market. But with economic uncertainty brought on by geopolitical conflicts, few buyers are in the mood to make the largest purchase most Canadians will make in their lifetimes.
According to the Toronto Regional Real Estate Board (TRREB), sales were down 13.3% year over year in May, and the average selling price fell 4%, annually, to $1,120,879. While an improvement over the 23.3%, 23.1%, and 27.4% annual drop in sales recorded in April, March, and February, respectively, May's numbers continue to reflect the ongoing market shyness brought on by tariff-related economic uncertainty.
Buyer Psyches Remain Cautious
“Structurally, there is nothing that should be holding the post-pandemic recovery back," CEO of Royal LePage Phil Soper tells STOREYS. "Yes, we're dealing with potential economic damage caused by the new American administration, but the actual impact has been very muted.”
Soper points out that though the unemployment rate has ticked up, it hasn't increased as much as some expected, the default rate on mortgages remains one of the lowest in the world, and incomes are still rising at a faster clip than they were pre-pandemic.
Phil Soper, CEO of Royal LePage Canada
“What this means is housing affordability is improving. So structurally, we're in great shape," says Soper. "The challenge, of course, is that this is more than a financial or a structural decision. It's also an emotional one, and, emotionally, people are feeling the stress of flip-flopping American trade messaging.”
Summer Market Outlook
While buyer psyches remain cautious, markets are beginning to see signs of life. Sales ticked up on a monthly basis for the second month in a row in May, and the average selling price inched up as well, signalling a potential shifting of tides in the coming months.
Soper shares that unreleased June data is showing "strong" sales numbers, reflecting a delayed spring market. "It's a small data point — four weeks in a year — but it appears we're experiencing a late spring market, not a crazy spring market, but certainly bucking typical seasonal trends.”
Things may heat up this summer, but looking ahead, Tim Syrianos, Broker of Record at RE/MAX Ultimate Realty Inc. in Toronto, is forecasting that a proper rebound will likely occur later on in the year.
"I believe that as we head towards the back-end of 2025, we will start to see improved sentiment, because we are seeing a lot of people who are inquiring, and they're wondering about their window of opportunity," Syrianos tells STOREYS. "You know, maybe [their window] is only six months to a year and not two or three years, and they want to get ahead of it."
On the price front, Syrianos says he doesn't foresee "a plunge in values," as most sellers have weathered market fluctuations and don't feel the need to drop their price dramatically to get their home sold. But general price softness is expected this summer.
Soper shares that Royal LePage will be slightly lowering their Toronto price forecast for the third quarter, largely due to the struggling condo market. "We expected a lift in the condo sector in the second quarter. That didn't happen," Soper says. "[...] I'm thinking we'll see soft prices in the second and third quarter, and price appreciation in September through December, but nothing crazy.”
In May, active listings in Toronto hit around 31,000 — levels not seen since 2002. So for those that are in the financial and emotional headspace to buy, a wealth of options and a decent amount of negotiating power await as listings reach historic levels this summer.
Because listings are so plentiful, Syrianos says many buyers have taken on what he calls a deal-or-no-purchase mindset. "We are between a balanced and buyers' market in many segments of the marketplace because of the volume of listings," he says. "So the buyers are saying, 'listen, either I get an opportunity and I get myself a good deal, or I'll keep on holding.'"
Tim Syrianos, Broker of Record at RE/MAX Ultimate Realty Inc.
Royal LePages' Soper also points out that the majority of Toronto homes are selling for slightly less than their asking price as buyers utilize their market leverage to negotiate sellers down. According to the latest Market Pulse report from Toronto real estate agency Wahi, 87% of Toronto neighbourhoods are in underbidding territory as of May.
Of course, how much sellers are able to negotiate prices down will depend on product type and neighbourhood. "The Devil's in the details," says Soper. "You see more flexibility in the condo and semi-detached townhouse market than you do in the fully-detached market."
Geographically, buyers might have a harder time securing deals in desirable suburban Toronto neighbourhoods like Etobicoke, East York, Leaside, Riverdale, North Toronto, and High Park. "Not all of the GTA is performing poorly. There are Toronto proper neighbourhoods that have traditionally been in high demand that maintain high demand," says Syrianos. "And you are seeing, in some cases, multiple offers. [...] They're not performing the same way that they did in past markets, but you're still seeing interest in those really good neighbourhoods."
So far, Bank of Canada rate cuts haven't made much competition for Trump's erratic trade policy when it comes to spurring housing market activity. But prior to Trump's election, it did seem as though lower rates were taking hold and emboldening some Toronto buyers to hop off the sidelines.
Before Trump, Royal LePage had predicted three 25-bps cuts by the end of the year. Now they expect one 25 bps cut on July 30 and another quarter-point cut later in the year. Soper attributes the reduced forecast to potentially inflationary forces brewing both at home and abroad, including the possibility of the war in the Middle East driving up oil prices, Trump’s inflationary ‘Big Beautiful Bill,’ and rising youth unemployment in Canada.
As the July 30 interest rate announcement approaches, many buyers and those in the real estate industry are hopeful for a 25 bps cut to give the housing market a mid-summer kick. "Do I believe that the rate cut in July would be a valuable one? I do," says Syrianos.
For perhaps the first time in history, real estate in distress is more than an industry conversation — it’s a dinner-table topic.
But those in the industry understand the space best and, as such, Insolvency Insider’s annual Distressed Real Estate Conference was the place to be in Toronto last week for those in the real-estate know.
Unsurprisingly, there was plenty to unpack at this year’s conference, which took place on Wednesday June 18, 2025 at The Conference Centre at the OBA. The event featured four panels and 13 panelists who work not only in restructuring, but commercial real estate, development, legal, and lending.
Today, the Toronto area is facing a deepening correction as oversupply, reduced demand, and rising costs render many projects financially unviable. The result has been receiverships and CCAA proceedings in droves, which have led to an uptick in distressed sales — the dynamics of which are fairly unique to this point of time.
"This year's conference shed light on the deepening challenges facing Canada's real estate industry," says Henry Louis, Founder, Insolvency Insider. "The event highlighted the need for creative and collaborative solutions between lenders, developers, and restructuring professionals."
As the event's media sponsor, STOREYS had an opportunity to sit in on the conference, alongside some 250 professionals in attendance. Here are our main takeaways.
Panel 2: Builders in Trouble – Workouts, Surety Claims, and Insolvencies in Construction
Not A Collapse, But A Cyclical Reset
As painful as it may be for industry players, the Toronto real estate market is going through a correction — but on the bright side, experts seem to be in agreement that it’s not collapsing. They say that strong fundamentals, well-positioned players that are still invested and intrigued, and pent-up demand all suggest that what we’re seeing is more of a cyclical reset.
“We haven’t seen the distress manifest the way that we would have expected... given that we're three years into what we call a downward cycle," said panelist Casey Gallagher, Vice Chairman of CBRE Capital Markets’ National Investment Team. "And it's because these developers are well capitalized, they've got great banking relationships, they've been here for a long time, and they've got strong equity partnerships as well. So they're weathering the storm."
Plus, this is not the worst downturn we’ve seen in recent history, according to Robert Goodall, President and CEO of Canadian Mortgage Capital Corporation. “I’m less concerned [today]; there's nothing like [the early '90s]. You've got to remember, the REITs didn't exist, they came out of the early '90s as a liquidity measure to allow companies to survive,” he said. “I look at the tier-one developers today — they're really strong; it doesn't matter whether you're talking Vancouver or Toronto."
"I don't care if this goes on another two to three years," Goodall said, "it'll be nothing like the early '90s.”
Looking ahead, Jared Menkes, Executive Vice-President of High-Rise Residential for Menkes Developments, emphasized that it's a waiting game; the market will eventually digest the oversupply. “We keep talking about 'two to three years,' [as a timeline for] when this is going to recover,” he said. “We have enough product that’s going to get us well past three years, probably five years. From a developer standpoint, we're saying: 'I don't see that pre-construction market coming back for at least three years'.”
Attendees enjoyed numerous networking breaks between panels
In Distressed Scenarios, Buyers Are Exposed
As the residential real estate sector is pulled down by waves of builder insolvencies, protections for consumers — the homebuyers — are limited and slow, leaving them exposed and unprotected. That’s not to say that there aren’t entities created to soften the blow for buyers who purchase into a project that's not what it was cracked up to be. However, at this point in time, there’s only so much that can be done.
“Right now, there's a bit of a misconception from purchasers, because purchasers think that we can solve all of their problems. And so we spend a lot of our time educating homeowners [on] what we really are,” said Kevin Brodie, Vice President of Underwriting at Tarion Warranty Corporation. “We backstop that warranty. We cannot complete a project. We can't compel a builder to complete the project.”
Partner at Paliare Roland LLP Jeffrey Larry added that many purchasers aren’t aware that there are limits to what an entity like Tarion can deliver on depositinsurance.
“So on a condo, it's only $20,000 — which is a surprise to everybody. And then on a freehold, it's 10% of the purchase price, but up to $100,000. So, in many cases for developments in the GTA, the actual deposits exceed that. In addition, any deposits on finishings, none of those are included,” Larry explained. “So in almost all cases that I see… you've got purchasers that are shocked to learn that they're not going to get [deposits] back. They really have, unfortunately, limited rights.”
Panel 3: Inside the Workout – Financial, Legal, and Operational Battles in Real Estate Restructurings
Real estate receiverships are by no means a positive thing, but they can have some semblance of a silver lining as far as the distressed asset is concerned — especially when you’re dealing with over-leveraged developers, stalled construction, and poor transparency. A successful restructuring process can bring some clarity into the equation, while attracting new investors with the ability to bring the project to completion. But that success ultimately depends on information flow, trust, and collaboration across all stakeholders.
“A lot of times, when you're dealing with a distressed developer, especially someone you know that is in a bind, the flow of information stops, and the lenders start to panic a little bit because they're not getting the right information. They can't make decisions, they can't react,” said Murtaza Tallat, Director, KSV Advisory. “Putting in a receivership, we lift the blanket, and we can basically see right away what the issues are. And we have a team in place to decide how we're going to tackle those challenges.”
In the case of the One Bloor West — long known as The One — the restructuring process has resulted in Tridel being chosen to complete the construction in “a very rational process,” according to Brendan O'Neill, Partner at Goodmans LLP. “In some of these cases, it's incredibly important to get the project out of the hands of the current developer… and get it into a receivership. And this case is certainly one like that,” he added.
In addition to Tridel, the project is now linked to a new lending entity that is committed to building the project with cost-effectiveness in mind, said O'Neill. “Notwithstanding that we're in a receivership, we are saving at least a million dollars a month over the prior costs because the prior costs were out of control, and they were chaotic. So the receivership has actually proven to be a cheaper means of completing the project.”
A large surface parking lot near the Legislative Assembly of British Columbia in Victoria. / Mario Hagen, Shutterstock
Two years after signalling that it was going to make a change, the City of Victoria has unveiled a suite of changes to its parking regulations that would "shift away from the car-centric regulatory model to one that better aligns with City policy, responds to different mobility demands across specific geographic areas and addresses a more diverse range of mobility needs through a range of options."
"The current regulatory approach for off-street parking is largely focused on the provision of motor vehicle parking, setting minimum supply rates that are based on estimated off-street parking demand," said the City in a staff report that's set to be received by Council later this week. "Minimum supply rates vary between geographic area (lower rates downtown and in community villages), tenure (lower rates for market rental and affordable rental housing) and unit size (larger dwelling units require more parking than smaller units)."
"This regulatory framework adds time, cost, uncertainty, and potential inconsistency to the development process if proponents seek to reduce off-street parking stall requirements," the report continues. "In such instances, applicants are required to submit permits for variances and negotiate TDM measures with staff on a case-by-case basis. In some cases, where the size of the variance is significant, an applicant is required to provide a parking study to determine whether the amount of parking and/or TDM measures being proposed are satisfactory."
The new proposed approach has several "key foundational elements."
Establishing A Baseline Parking Supply Rate
According to the City, car ownership in Victoria is trending downwards, with 25% of Victoria households not owning a vehicle and 41% of households in downtown not owning a vehicle. The City has not updated its off-street minimum parking rates since 2018 and has now outlined an update to supply rates, which are expressed as the amount of parking stalls provided per residential unit, with higher rates for larger units.
The new proposed supply rates have been lowered across the board, regardless of residential type and unit size, and in some cases have been completely eliminated, such as for affordable housing. (A full list of the changes, including for non-residential uses, can be viewed here.)
Of note is that, as is the case with all minimum parking requirements, applicants can still opt to provide more parking than what is required under policy and developers do see some value in providing parking.
Proposed Residential Baseline Parking Supply Rates. / City of Victoria
Maximum Parking Supply Rates
While many municipalities across North America are focused on eliminating minimum parking requirements, some have also started to look at or introduce maximum parking requirements to prevent the possibility of parking oversupply.
"With respect to setting a maximum supply rate, it is recommended that a consistent city-wide rate be set at 10% above the baseline parking supply requirements," said City staff in the report. "Given that the baseline rate is generally reflective of actual parking demand and developments in the City typically don’t provide more than the required number of parking stalls, it is considered that requests to provide more than 110% of the baseline will be relatively rare."
Although the concept hasn't quite gone mainstream yet, the City notes that maximum parking supply rates exist in the District of Saanich, City of New Westminster, and City of Kelowna.
Provision Of TDM Measures
Although municipal governments set minimum parking requirements, many have also traditionally allowed applicants to reduce the amount of parking they have to provide through transportation demand management (TDM) measures, which entails the applicant providing residents with things such as enhanced bicycle parking, subsidized transit passes, and/or car share access.
"Current processes allow applicants to apply for a parking variance where they are not satisfying minimum parking supply requirements and, in these instances, the provision of TDM measures is negotiated to provide alternative transportation options for residents," said staff in the report. "Rather than continuing to require variances and negotiate TDM on a case-by-case basis (which adds time, cost and uncertainty to applications), it is recommended that the provision of TDM measures to offset a reduction in parking stall supply be formalized in the form of regulations. The City currently does apply a similar regulatory approach, but only with respect to the Missing Middle housing regulations."
According to the City, the new proposed measures were developed based on a review of industry best practices and other municipalities. The City also notes that providing TDM measures instead of constructing underground parking often reduces construction costs for developers and that those cost savings could potentially be passed on to residents. (Full details of what the individual TDM measures entail are available here.)
Transportation Demand Management Measure Options. / City of Victoria
Cash-In-Lieu Of Parking
As another alternative, municipalities often also allow developers to provide cash contributions to reduce the amount of parking they have to provide. Cash secured that way must go to a reserve fund that can only be used towards things like parking infrastructure and other transportation-related infrastructure.
Victoria does not currently have a cash-in-lieu policy, but is now set to establish one, with rates the City says are in line with those in other municipalities.
The staff report also notes that similar to TDM measures, the cash-in-lieu option generally provides savings to developers compared to constructing underground parking, which could again be a benefit to residents. (A report published by the Metro Vancouver Regional District earlier this year found that constructing parking can cost over $200,000 per stall.)
No changes to requirements are being proposed for accessible and visitor parking and both are also not eligible to be reduced via TDM measures of cash-in-lieu.
Proposed Cash-in-Lieu Rates. / City of Victoria
Area-Specific Regulations
The aforementioned changes are city-wide, but would be adjusted for different areas of Victoria. For example, in the downtown core, there would be no baseline parking supply rate, a maximum parking supply rate would be established, and a minimum set of TDM measures will be required.
"Due to the characteristics of the area and the relevant policy direction, it is recommended that minimum parking requirements do not apply in the downtown," said staff. "This would allow developments to provide parking based on market demand and project considerations. Dependent on development conditions, a proponent could provide between 0% to 110% (maximum parking supply rate) of the baseline parking supply rate."
For major mobility hubs such as the Mayfair, Midtown, Hillside, Jubilee, and Oak Bay Junction town centres, the baseline parking supply rate would be reduced by 50%, minimum TDM measures would be required to offset that reduction, additional TDM measures or cash-in-lieu would be allowed, and a maximum parking supply rate would be established.
For sites along the City's transit priority network (TPN) and within 200 metres of the TPN, the regulations would be similar to those for major mobility hubs, except the baseline parking supply rate would be reduced by 30%.
The downtown area (left) and transit priority network (right) that will have adjusted parking regulations. / City of Victoria
Other Changes
The City has also proposed changes regarding bicycle parking. To account for the increased popularity of large bicycles (such as electric or cargo bicycles), the City has proposed a requirement that 15% of all long-term and short-term bicycle parking stalls be designed to accommodate large bicycles. To ensure accessibility, the maximum percentage of long-term stalls that can be provided as wall-mounted racks would also be decreased from 50% to 30%.
A new regulation would also require 50% of all long-term bicycle stalls to support electric charging (access to a 110v charging outlet) and the City has proposed introducing requirements for end-of-trip facilities in non-residential units in order to support active transportation. Those facilities include showers, change rooms, repair equipment, and bicycle wash stations.
As it relates to electric vehicles, the City is proposing that all parking spaces be required to support EV charging, that the minimum number of parking stalls that support EV charging be increased for non-residential uses, and that new minimum parking requirements be introduced for EV charging stations for industrial, commercial, and institutional uses.
All of the above changes, as well as changes regarding a new proposed Curbside Management Strategy, are set to be considered by Council on Thursday, June 26. If endorsed by Council, staff will then work on drafting bylaw changes and holding public engagement before the changes are presented to Council at a later date for formal consideration.
Ontario Place parking structure/Government of Ontario
Today, the Ontario Government released final designs for the revitalization of the long-neglected Ontario Place, alongside a press release outlining the extensive redevelopment plans envisioned for one of Toronto's most-prized strips of waterfront.
When the provincially-owned destination first opened its doors in May of 1971, Ontario Place served as a tourist attraction to showcase all things 'Ontario.' Over time it became a popular destination for families and school field trips, with the addition of a water park and amusement rides, but by 2012, declining revenue and attendance had caused the park to shutter.
Plans released today constitute a years-long effort to breathe life back into the park through the addition of attractions like public trails, expanded green space, playgrounds, interactive fountains, new beaches, event spaces, and an updated marina.
“We’re rebuilding Ontario Place into a world-class destination for families and tourists, with convenient connections for visitors coming by car, GO train or the Ontario Line’s nearby Exhibition Station,” said Premier Doug Ford in the release. “The investments we’re making will help keep 5,000 workers on the job, despite the economic uncertainty caused by President Trump’s tariffs, and will help protect and grow Toronto and Ontario’s tourism sector for decades to come.”
The park's new design will consist of five distinct zones: The Forum, The Mainland, The Marina, The Water’s Edge, and Brigantine Cove. Highlights of the redevelopment include a new entrance with a 3,500-spot parking structure expected to bring in $60 million in revenue per year, a new Brigantine Cove with a multi-level interactive treehouse, a new forum space for outdoor markets and festivals, a 3,400-sq.-ft Indigenous Cultural Pavilion, Live Nation’s revitalized year-round amphitheatre, and the relocation of the beloved Ontario Science Centre.
“Ontario Place was once an iconic tourist attraction and a cornerstone of our province’s cultural and recreational landscape,” said Stan Cho, Minister of Tourism, Culture and Gaming. “Now more than ever, it is important to support the places and experiences that celebrate our heritage and culture while protecting local jobs and economic growth. This transformation will breathe energy into Toronto’s waterfront while drawing visitors from near and far for generations to come.”
Behind the landscape design for the new Ontario Place is LANDinc., who's designs were shaped by consultations with First Nations and Indigenous groups, over 9,300 residents, the City of Toronto, and other stakeholders.
"Ontario Place holds a special place in our city's diverse heritage and LANDinc is honoured to lead the design of this public waterfront park, establishing the green heart of this world-class destination," said Senior Principal of LANDinc. Patrick Morello.
Once complete, Ontario Place will be one of the largest public parks in downtown Toronto and is expected to welcome more than six million visitors each year.
Ontario Place Renderings
Beach
All renderings courtesy of the Government of Ontario.
Lights, camera, move in! Housed in a former movie theatre, this loft is ready for its next leading tenant.
Steps from Toronto’s vibrant Little Italy neighbourhood, Unit 103 in The Movie House Lofts is a charming space showcasing its heritage roots, while embracing a modern flair. Located at at 394 Euclid Avenue and listed for $1,025,000, the (more than) 1,200-sq.-ft loft is within a century old red-brick building, once a Protestant fraternal clubhouse and, as mentioned, theatre.
Spread over three floors, the unit is a 1+1 bedroom with two baths. It’s ideal for the young entrepreneur looking to live in an iconic Toronto neighbourhood close to the downtown core or a creative who wants to be inspired.
The open-concept space features soaring ceilings with wall space perfect for displaying art. With a dramatic floor-to-ceiling arched warehouse-styled window, an abundance of natural light floods the ground level making it a scene stealer. Sightlines into every room on the main floor makes the space the heart of the unit and spot to entertain guests.
A set of double-windowed doors opens the room to a quaint streetside garden patio. It’s an urban retreat that is close to the hustle of College Street, while still providing an oasis-like escape.
In the kitchen, the backsplash draws the eye with its warm hues of copper, brown, and gold tones. Its open shelving allows you to curate dishware like a gallery — if you feel so inclined.
Our Favourite Thing
It's in an unbeatable location. Steps away from Toronto’s Little Italy neighbourhood, you’ll have the bragging rights of living in the dynamic area and in a piece of its history, to boot. Plus, you’re within walking distance of other popular enclaves like Kensington Market, the Annex and the soon-to-be reopened Mirvish Village.
Up the stairs is the airy primary bedroom that floats above the living space. The cozy room fits a queen-sized bed and features a built-in dark-coloured wardrobe. The room is level with the top of the unit’s large window, allowing the rising sun to naturally wake you as it pours into the space at dawn. Across the hall is an ensuite that can be private or used by guests. (But we suggest keeping this one to yourself and directing visitors to the second full bathroom in the basement.)
The bottom floor is adaptable to whatever your needs happen to be. Its current set up is an office/study area and recreation room with a couch and TV. The space has the potential of being reimagined into a games room, home gym, library, or a creative studio. It has ample storage with a nook under the staircase and in the laundry room next to the washer and dryer.
The area itself has endless options of restaurants, cafes, boutique stores, and bars. The Movie House Lofts is also home to Cafe Belém (not Italian, we know), which serves coffee and traditional Portuguese pastries like the Pastel de Nata. It’s also walkable and transit friendly, with two streetcar lines nearby and Bathurst subway station only a 15-minute stroll away, through a neighbourhood with historic mansions.
This article was written and submitted by Liam Gill, lawyer, tech entrepreneur, and the writer of The Middle Ground.
As the Toronto City Council prepares to vote on legalizing sixplexes city-wide this week, a roadblock remains that could prevent sixplexes from ever being built: development charges (DCs), which are the fees the city imposes on new housing.
Toronto currently has a DC waiver for multiplexes with four units or fewer, but there’s a catch: as soon as someone wants to build a fifth unit, the waiver disappears, and DCs apply to all the units. That creates a bizarre incentive to stop at four units even when there is space and demand for more. That is why at the last meeting of the Housing and Planning Committee, I proposed extending the DC waiver to the first six to ten units of every development.
In response, Councillor Stephen Holyday asked me, “Why on earth would I cut development fees so that a doctor or a lawyer with $600,000 or $700,000 lying around can make more money?” It’s a revealing question that highlights a fundamental issue; at a time when Jagmeet Singh, Pierre Polievre, and Mark Carney all agreed DCs negatively impact housing affordability, City Council remains fixated on the optics of the policy, not its impacts.
If we’re serious about tackling housing affordability, we need to have an honest conversation about how DCs are killing projects, reducing the supply of housing and driving up rents.
According to the City, a two-bedroom affordable unit should cost $281,695, however, the DCs alone for that unit are a whopping $80,690. That’s more than 28% of the total cost. Add in parkland fees, community benefits, and taxes — there’s no way a developer can make the numbers work.
I recently explored the possibility of converting a lot currently occupied by a single-family home into a 10-unit purpose-built rental building. The costs would have totalled $3.15 million, with the finished building worth roughly $3.5 million. This should have been a slam dunk, creating nine new housing units at a profit. Instead, the $423,489 in DCs levied by the City made the project financially unfeasible.
Even when developers do build, DCs are passed on to renters through higher rents. The $50,248 in DCs for a two-unit rental apartment means an additional $280 per month in mortgage payments for the developer. This equates to an extra $3,360 per year in rent.
The most concerning aspect of DCs is their increase over the last 15 years. In 2010, DCs for a one-bedroom condo were $4,985, but today, they are $54,801, a 1100% increase. If property taxes increased at the same rate, a one-bedroom condo would owe $23,932 per year. If food prices increased at that rate, a Big Mac would cost $46, and a small Tim Hortons coffee would be $16.50.
City Council argues that DCs are necessary to fund services for these new developments. In reality, however, most of the money isn’t being spent. In 2007, the City had $172 million in its development charge reserve. By 2023, that figure ballooned to $3.1 billion. That is billions of dollars worth of taxes on new housing sitting untouched while young people are priced out of the city.
Councillor Holyday framed the issue as protecting the city from wealthy professionals seeking profit, but that misses the point. Those professionals have been buying and renting housing for decades, making a substantial profit. We need to change the financial incentives so that it is more profitable for them to build apartments than buy them. This will increase supply and lower rents.
And Toronto has proved this works on a small scale. In 2022, the city waived DCs on buildings with four units or fewer. In 2023, it permitted the construction of four-unit multiplexes as of right. The result? An 800% increase in multiplex units. And those units rent for 35% less than the average condo — $2.93 per square foot versus $4.44.
To answer Councillor Holyday’s question, we should cut DCs on the first six to ten units of every development (or failing that, extend the current four-unit waiver to all developments), not to make rich people richer, but because it is the fastest and most efficient way to encourage more people to build housing. We are facing an unprecedented affordability crisis, and there is no logical justification for a tax that directly raises rents and home prices.