An investment property is real estate purchased with the intention of generating income or profit, rather than being used as a primary residence.
Why Investment Properties Matters in Real Estate
In Canadian real estate, investment properties can take the form of rental homes, condos, duplexes, or multi-unit buildings. Investors purchase these properties to earn rental income, benefit from appreciation, or both.
Unlike a principal residence, investment properties are subject to capital gains tax upon sale, and rental income must be reported for tax purposes. Owners can, however, deduct certain expenses—including mortgage interest, property taxes, maintenance, and depreciation—to offset rental income.
Lenders often require larger down payments (typically 20% or more) for investment properties, and mortgage rates may be higher due to increased risk. Investors must also be prepared for vacancy periods, repairs, and property management duties.
Successful real estate investing requires understanding market trends, zoning rules, landlord-tenant laws, and financial planning strategies.
Example of an Investment Property
A buyer purchases a duplex in Hamilton and rents out both units. The monthly rental income exceeds the mortgage payment, generating positive cash flow.
Key Takeaways
Purchased to generate income or profit.
Subject to specific tax rules and regulations.
Requires a larger down payment and careful financial planning.
Offers potential for appreciation and cash flow.
Can be held short- or long-term depending on investment goals.
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
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 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.
The main exit of a Hudson's Bay store amidst liquidation sales. / Ross Howey Photo, Shutterstock
British Columbia-based Chinese billionaire Ruby Liu is facing an uphill battle in her quest to acquire 25 of Hudson's Bay's former leases and the quest is getting more challenging after Cadillac Fairview (CF) made a new filing in court this week voicing its opposition to the sale.
After the Hudson's Bay Company (HBC) filed for and was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA) on March 7, all of the stores it was operating — under the Hudson's Bay, Saks Fifth Avenue, Saks OFF 5th brands — were liquidated and closed.
The main piece of outstanding business is now the fates of all of Hudson's Bay leases. The Ontario Superior Court approved the lease monetization process in March, which consisted of two phases. Following the first phase, 18 parties submitted bids pertaining to 65 individual leases (with overlapping interest in certain locations). That was then whittled down to 12 parties for 39 individual leases. At the end of the process, Hudson's Bay and the court-appointed Monitor entered into an agreement with Central Walk, the company chaired by Ruby Liu, for 28 of Hudson's Bay's leases.
Last month, Liu received approval to acquire three of the 28 leases through Ruby Liu Commercial Investment Corp. for $2 million each and a grand total of $6 million. Approval was secured in that case because Liu obtained consent from the landlords of those three leases — a foregone conclusion considering the leases were for spaces at the three malls owned by Central Walk.
That left 25 leases and Liu has had much more trouble securing consent from those landlords. Although court documents suggest that many landlords are opposed to the transaction to Central Walk, the only one who has spoken out publicly is Cadillac Fairview, which is a wholly-owned real estate subsidiary of the Ontario Teachers' Pension Plan (OTPP) and one of the largest owners and operators of large regional malls in Canada.
"CF remains resolutely opposed to the assignment of the former HBC leases to Central Walk/Ruby Liu Commercial Investment Corp.," the company said in its filing, which was responding to September 11 being proposed as the target hearing date for the sale approval. "The Central Walk Transaction will cause serious material prejudice to CF and other similarly situated Landlords. If approved, the Central Walk Transaction would potentially lock the Landlords into multi-decade tenancies with an untested anchor tenant and a deeply flawed retail concept at 25 locations across Canada."
CF-HBC Leases
To date, the list of 25 leases and the landlords have not been made public, but Cadillac Fairview's filing confirms leases for spaces at its shopping centres are included in the proposed transaction. According to court documents, Cadillac Fairview had 14 leases with HBC, including some held under Ontrea Inc., another OTPP subsidiary:
Richmond Centre / Richmond, British Columbia
Market Mall / Calgary, Alberta
Chinook Centre / Calgary, Alberta (Hudson's Bay)
Chinook Centre / Calgary, Alberta (Saks Fifth Avenue)
Eaton Centre / Toronto, Ontario (Saks Fifth Avenue)
Fairview Pointe Claire / Pointe Claire, Quebec
Les Promenades St. Bruno / St. Bruno, Quebec
Carrefour Laval / Laval, Quebec
Cadillac Fairview went on to say that it projects prospective loses in the hundreds of millions of dollars if the sale of the leases to Central Walk is approved. Last month, CF sold the Lime Ridge Mall in Hamilton — which was home to a Hudson's Bay store — to Primaris REIT for $416 million, although it is unclear if the sale had anything to do with HBC's insolvency.
According to CF, they met with Liu on June 2, but Liu failed to present a business plan. CF requested further information, but CF says Liu has not provided anything other than a brief letter on June 6. During last month's hearing for the three leases, HBC's senior lenders and the landlords agreed that they would not force the assignment of the remaining leases without consultation with the landlords, but CF says the lenders have since "declared their intent to seek approval of the Central Walk Transaction and pursue a non-consensual assignment of the remaining leases."
CF says it has not received the motion materials and requested the materials and Liu's business plans on July 18, but has not received so much as an acknowledgement as of July 22.
"Almost everything CF has learned about the Purchaser's proposed plans for the former HBC leases has come through the press and social media," said Cadillac Fairview. "If the Applicants wish to pursue this motion, they must provide their case diligently to allow a fair response. They have not."
Ruby Liu has been hosting a series of job fairs in Toronto. / Linda Quin, LinkedIn
Cadillac Fairview also voiced strong displeasure with the proposed timelines, saying that the Monitor — Alvarez and Marsal — and senior lenders have both proposed timelines that provide themselves with more time "to finalize a motion they have been working on for 2 months, than for the Landlords to respond to a motion they have never seen."
"The APA was executed two months ago. Presumably, the Applicants have been acting with due diligence to prepare their materials. They should produce these materials, together with supporting materials from Ms. Liu and the Purchaser, this week, i.e. no later than July 25. Central Walk consents to this timeline."
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.
This article was submitted by John DiMichele, CEO of the Toronto Regional Real Estate Board (TRREB).
York Region is home to some of the most desirable communities in Canada. But increasingly, this Region is facing a combination of challenges that pose significant risks to its residents and economic outlook, namely high home prices, falling housing starts, and some of the highest development charges (DCs) in the country.
Now is the time to consider a change of direction. Municipalities across York Region must reduce or defer DCs to help unlock the desperately needed housing supply and protect Ontario’s economic competitiveness. Through Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025, the province is allowing the deferral of the collection of DCs for all residential projects as an incentive to get more shovels in the ground.
New home construction across the Region is falling short of provincial housing targets. Several municipalities face challenges meeting their annual housing goals to reach their 2031 targets. In particular, the Toronto Regional Real Estate Board (TRREB) is exploring opportunities to collaborate on specific housing policies that would assist municipalities like Markham, Richmond Hill, and Newmarket in meeting their long-term housing goals while supporting the financial needs of municipalities.
This failure to build isn’t just a housing crisis. It’s an economic crisis in the making. Ontario’s economy is facing heightened uncertainty, driven in part by rising protectionism and recent tariff threats from the U.S. administration. Our province cannot afford to sit idle while global trade pressures intensify. We need an all-hands-on-deck strategy to strengthen Ontario’s competitiveness, including building more homes, faster and more affordably.
When workers can’t afford to live near their jobs, businesses lose talent, productivity drops, and investment dollars flee. Employers are already warning that housing affordability is a barrier to attracting skilled workers, particularly in high-growth sectors like manufacturing and high-tech. If Ontario wants to win in a global economy, it must build communities where workers and their families can afford to live.
In York Region, municipal DCs, imposed by the Region and each local municipality, are a brake on the housing supply we need. Markham’s fees add up to over $170,000 on a single-detached home. In Richmond Hill, it’s $145,000, while in Newmarket it’s $140,000. DCs are costs added directly to the price of every new home built in the Region. They reduce the viability of rental and attainable housing projects while discouraging the creation of “missing middle” options like townhomes and low-rise apartments.
Decisions by other municipalities in Ontario to tackle high DCs reflect a growing consensus among municipal leaders that DC policies must evolve in tandem with housing supply obligations. For example, Vaughan, Mississauga, and Burlington have reduced their DCs to spur housing construction. Barrie is using its strong mayor powers to defer DCs and accelerate approvals. Most recently, Peel Region Council voted to reduce its DC rates by 50% until November 2026 to encourage housing development and make homes in Mississauga, Brampton, and Caledon more affordable. These are not careless decisions. Instead, they are strategic moves to align local fee structures with long-term housing and economic goals.
It’s time for York Region municipalities to do the same.
We acknowledge the June 12, 2025, decision by the York Region Committee of the Whole to endorse a new first-time buyer DC-equivalent rebate for newly built homes valued at $1 million or less, contingent upon receipt of new funding from higher levels of government to fully offset those costs. This is in addition to several other changes focused on DC deferrals to stimulate new housing development in the Region. If adopted by York Region Council, these policies will align with the deferral requirements of Bill 17 and support the federal government’s efforts to lower overall DC rates, thereby improving affordability and increasing supply.
TRREB is urging York and all municipal councils across the Region to take immediate action to pause or reduce planned DC increases, defer collection of DCs until occupancy to align with Bill 17 requirements and explore targeted exemptions for affordable and rental housing. Solving the housing challenges requires a coordinated effort from all levels of government. TRREB is calling on the provincial and federal governments to step up and provide municipalities with stable funding to support the construction of the right type of housing supply. These measures won’t just help families looking for a place to live; they’ll help strengthen our economy when Ontario needs every competitive edge.
Premier Doug Ford has taken important steps to increase housing supply and counter trade threats. But local governments must do their part, too. DCs are shaping where and whether homes are built and who can afford to live in them.
Let’s not let outdated policies choke our economic potential. The path to a stronger, more resilient Ontario starts with building more homes for workers, families, and individuals — and that begins by reducing the government fees that stand in the way.
Toronto-based Minto Communities is partnering with SickKids to deliver a "sculpted and articulated" 56-storey, 579-unit mixed-use tower that would house new clinic space for the SickKids Centre for Community Mental Health currently located on site.
Plans were filed in early July and encompass an Official Plan and Zoning Bylaw Amendment application to permit the intensification of the under-utilized site and retention of the existing SickKids facility. Successful approvals would see the site designated within both Apartment Neighbourhoods and Institutional Areas in the City’s Official Plan and to permit the increased height and density being proposed.
The development site is located at 110 -114 Maitland Street, home to a to-be-demolished three-storey vacant apartment building at 110 Maitland and five-storey SickKids office at 114 Maitland. Additionally, a four-storey SickKids wing extends eastward to 440 Jarvis Street. No changes have been proposed for this wing and, upon approval of the application, the 440 Jarvis building would form its own distinct lot.
Situated within downtown Toronto's vibrant Church-Wellesley neighbourhood, the development would be within walking distance of a number of amenities, including retail, dining, entertainment options, and would be well-serviced by higher-order transit stops, such as Wellesley Station on Line 1, Sherbourne Station on Line 2, the 506 Carlton streetcar route, and more.
The building itself is being designed by Diamond Schmitt Architects, whose renderings depict a chic tower with brick masonry in the four-storey podium element. At grade would be the residential lobby and entrance to the "modernized" SickKids Centre for Community Mental Health, which would have office space located on levels three and four spanning 24,347 sq. ft, in addition to the 26,662-sq.-ft Jarvis Street wing.
110-114 Maitland/Diamond Schmitt Architects
Indoor amenity space would be found at grade and on levels two, five, six, and 57, totalling 12,465 sq. ft, and outdoor amenity space would be found adjoining to the indoor amenities on levels five and 57, for a total of 4,984 sq. ft of outdoor space. The most notable of these spaces include a floor-spanning amenity space with an outdoor terrace and green roof atop the podium and a rooftop amenity space.
The 579 residential units would include 36 rental replacement units and would be divided into 77 studio units, 273 one-bedrooms, 170 two-bedrooms, and 59 three-bedrooms. Given the site's close proximity to transit and the walkability of the neighbourhood, plans only provide for nine residential parking spaces located at grade, with no below-grade parking. Additionally, there would be 663 bicycle parking spaces made up of 522 long-term spaces and 116 short-term spaces.
If approved, the proposed development would preserve an essential youth-focused mental health centre and add a substantial amount of new housing units to Toronto's bustling, transit-oriented "Gay Village," continuing the intensified growth the neighbourhood has seen in recent years.
CIBC Economics released an updated interest rate forecast on Monday, revealing that they are now calling for the Bank of Canada’s (BoC) policy interest rate to be brought down a quarter-point to 2.50% in September and to 2.25% by December.
This comes a week before the central bank is set to meet for its next rate announcement, scheduled for the morning of Wednesday, July 30. Back in June, economists with CIBC were expecting a 25-basis point (bps) cut for next week’s decision, which would have brought the rate down to 2.50%.
However, CIBC’s latest forecast comes on the heels of a series of major data releases from Statistics Canada (StatCan) that will certainly play into Governing Council’s upcoming decision, including last week’s labour market numbers — which showed employment declining by 83,000, the unemployment rate falling to 6.9% — and Consumer Price Index print, which came in at 1.9% year over year, up from 1.7% in May.
Forecast update from CIBC Economics and FICC Strategy, July 21, 2025
“On the heels of a good job report and somewhat firm price pressures, we expect the BoC to remain on pause in July because this is a central bank that, by its own admission, isn’t very comfortable being forward-looking,” said CIBC Economist Ali Jaffery in a July 15 commentary. “Waiting until the fall will give them more time to observe cost pressures, the response of the economy to tariffs and the uncertainty shock, and perhaps most important, to have a clearer picture of Canada’s tariff outcome.”
For now, CIBC is in good company in anticipating an interest rate hold from the Bank of Canada next week, but looking forward, economists appear to be split on whether the remainder of the year will bring more cuts at all.
In CIBC’s camp, economists with both TD and BMO are calling for further easing, according to their most recent forecasts, with TD predicting a benchmark rate of 2.25% by the third quarter of the year and through to at least the end of 2026, and BMO predicting a rate of 2.25% not until October and through to the end of 2025.
“We are now dealing with a new wave of uncertainty, not least from Trump’s recent threat to raise Canadian tariffs as high as 35% by next month. Prime Minister Carney also appears to be embracing what could be the ‘new-normal’, acknowledging that a forthcoming trade deal will likely have tariffs included,” wrote TD Economist Marc Ercolao in a July 18 note. “Absent a clean and quick resolution on trade, which seems unlikely at this juncture, the economic backdrop faces downside risk and should give the BoC space to deliver more easing later this year.”
On the more hawkish side of things, economists with Scotiabank and RBC are of the belief that the BoC won't be cutting again any time soon. Economists with Scotiabank have long been calling for a series of holds through 2025, which would keep the policy rate steady at 2.75% — where it’s been since March and the early days of trade war fears. Further easing won't come until 2026, according to Scotiabank, and they are forecasting just a 25-bps cut to 2.50% at some point in the year.
Meanwhile, RBC’s updated forecast has the benchmark interest rate staying at 2.75% — potentially until end of 2026. “The central bank was already approaching the end of its easing cycle. It opted to pause at the last two policy meetings after an earlier and more aggressive easing cycle over the past year,” said Economist Claire Fan in a June 12 report. “Near term growth has shown resilience and future inflation after the recent upside surprises is still uncertain. Fiscal support is stepping up, and better able to provide timely, targeted, and temporary support needed to address the immediate impact of tariffs.”
A comprehensive mixed-use development containing a daycare, new public park, 9,870 sq. ft of retail space, and 915 rental apartment units has been proposed for a commercial plaza in East York's O'Connor-Parkview neighbourhood. The complex would contain four separate buildings with heights of 14, 15, 21, and 29 storeys.
Plans were filed in early July on behalf of 1000920447 Ontario Inc. and support a number of applications pertaining to the development, including a Draft Plan of Subdivision that reimagines the site with a new public street and two surrounding development blocks, including a park block, and Official Plan and Zoning Bylaw Amendment applications to allow for intensified height and density, among other changes.
The submission also includes an application for a Class 4 Receptor Classification on a portion of the site, which is a tool for resolving conflicts between louder industrial-zoned lands and more noise-sensitive land uses, such as residential, by relaxing the noise limit levels on the most-impacted area of the development site.
According to planning materials, "It is anticipated that some concerns may be expressed by the nearby industrial operators relating to the development of sensitive land uses in proximity to the existing industrial operations that could potentially limit the continued operation and expansion opportunities of industrial uses."
The classification would help remedy these concerns, but in order to reduce noise levels for residents, mitigation methods — including setbacks, building design, and noise barriers — would be implemented. In one example, the planning materials describe eliminating noise-sensitive windows along facades that would be most impacted by nearby industrial noise.
The industrial lands are located to the west and north of the site, which is located on the northwest side of 1450 and 1500 O'Connor Drive. The site spans 158,068 sq. ft and is currently occupied by restaurants, retail establishments, medical offices, small-scale industrial uses, and a day care, according to planning documents.
If approved, the proposed development would stand out amongst its immediate surroundings — the tallest nearby structure being a seven-storey mixed-use building — but the developer has made the case that the build would enhance the existing neighbourhood by providing the "on-site parkland dedication, public realm improvements on O’Connor Drive, expand(ing) the range of housing options within community, and optimize(ing) the planned investments in the local transit, cycling, and road network."
The site is located on a Major Road within close proximity to the Don Valley Parkway and is serviced, most notably, by the TTC O’Connor bus, which connects to the the Bloor-Danforth Line and the nearly-completed Eglinton Crosstown LRT.
Once complete, the site would be organized with 14-storey Building A along the eastern edge of the property, fronting onto O'Connor Drive and the new public road; 21-storey Building B sitting to the west of Building A, also fronting onto the new street; 29-storey Building C located west of Building B and fronting onto a cul de sac at the end of the new road; and 15-storey Building D sitting north of the new road and directly west of the 15,769-sq.-ft public park.
Site Plan for 1450 & 1500 O'Connor Drive/Arcadis
The buildings, which are designed by Arcadis, would feature podium elements ranging from four to six storeys in height. They would contain the daycare facility, located at grade along the new public road, and the retail units, also at grade, with some fronting onto the new road and others onto O'Connor Drive. Additionally, green roofs would be installed on each of the proposed buildings.
In total, the development would provide residents with 19,697 sq. ft of indoor amenity space and 18,933 sq. ft of outdoor amenity space located at grade and on various levels throughout the four buildings. As well, across the entire development, there would be a total of 521 vehicle parking spaces across three levels of underground parking and 1,009 bicycle parking spaces on the ground and mezzanine floors. Finally, the 915 rental apartment units would be divided into 473 one-bedrooms, 335 two-bedrooms, and 107 three-bedrooms.
According to planning materials, the developer behind 1000920447 Ontario Inc. has been working with the City since early-February 2024 to deliver the current proposal. A year and a half in, the collaborative efforts have culminated in an attractive and ambitious development that could pave the way for more intensification in this corner of the city.