Ontario Housing Policy Changes Since the 2025 Election: What Actually Changed
Quick Answer: Ontario housing policy changes since the February 2025 election focus on new supply and upfront costs. The re-elected Ford government passed Bill 17 and Bill 60, worked with Ottawa to expand HST relief on eligible new homes to as much as $130,000, funded development charge cuts, and set the 2027 rent increase guideline at 1.9%.
When this page first went up, every party was still promising to fix housing. The ballots are counted now, and what matters is which Ontario housing policy changes became law.
Doug Ford’s Progressive Conservatives won a third straight majority on February 27, 2025, taking 80 of 124 seats. Since then, Queen’s Park has focused on two things: lowering the cost of building and buying new homes, and speeding up the Landlord and Tenant Board (LTB).
That shifts the math on new builds versus resale. It also changes the questions agents get every week. If you are a realtor deciding where to grow, a real estate brokerage in Ontario that gives you training, marketing support and tech tools like a CRM makes it easier to turn these rule changes into clear client advice.
What the 2025 Election Decided for Ontario Housing
The NDP stayed on as Official Opposition with 27 seats, and the Liberals won 14, enough to regain official party status. With a majority, the PC platform became the housing roadmap. It promised to:
- Work with municipalities on housing-enabling infrastructure.
- Make development charge calculations consistent across the province.
- Make sure municipalities spend development charge revenue promptly and transparently.
Opposition ideas, like the Liberal promise to extend rent control to newer units and the NDP pledge of 300,000 affordable homes over a decade, did not become policy.
Ontario Housing Policy Changes at a Glance
| Policy | What it does | Key date |
|---|---|---|
| Bill 17 | Lets residential development charges be paid at occupancy | Royal Assent, June 5, 2025 |
| Bill 60 | Faster LTB process and new notice rules | Royal Assent, Nov. 27, 2025 |
| Expanded HST rebate | Up to $130,000 relief on eligible new homes | Agreements signed Apr. 1, 2026 to Mar. 31, 2027 |
| Canada-Ontario Partnership to Build | $8.8 billion tied to development charge cuts | Signed Mar. 30, 2026 |
| 2027 rent guideline | 1.9% cap on most rent-controlled units | Increases in calendar year 2027 |
The Biggest Ontario Housing Policy Changes Explained
Bill 17: Development Charges Move to Occupancy
The Protect Ontario by Building Faster and Smarter Act, 2025 received Royal Assent on June 5, 2025. Residential development charges can now be paid when an occupancy permit is issued or the building is first occupied, whichever comes first. Builders no longer carry that cost for years before a unit closes. The act also stops municipalities from imposing construction standards beyond the Ontario Building Code.
HST Relief on New Homes
This is the change buyers ask about most, and it came in two layers.
- First-time buyers: The federal First-Time Home Buyers’ GST/HST Rebate removes the 5% federal portion (up to $50,000) on new homes up to $1 million, with partial relief up to $1.5 million, for agreements signed on or after March 20, 2025. Ontario announced on October 28, 2025 that it would match it by removing the 8% provincial portion.
- All eligible buyers: The 2026 Ontario Budget, tabled March 26, 2026, temporarily extended relief to repeat buyers. With federal support, eligible buyers can get up to $130,000 on new homes up to $1.5 million, a reduced amount up to $1.85 million, and the existing provincial rebate of up to $24,000 above that.
The enhanced relief covers agreements signed from April 1, 2026 to March 31, 2027. The home must be a primary residence or a qualifying long-term rental, and a buyer who qualifies for both programs gets the larger rebate, not both.
Many builder agreements assign the rebate to the builder as a price credit, so buyers should have a lawyer confirm how it is applied. Our first-time buyer guide for Ontario covers programs that stack with it, like the land transfer tax refund of up to $4,000.
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Development Charge Cuts Through the Canada-Ontario Partnership to Build
Premier Ford and Prime Minister Mark Carney signed the partnership on March 30, 2026. The two governments are cost-matching $8.8 billion over 10 years for housing-enabling infrastructure.
Funding is prioritized for municipalities that cut development charges by 30% to 50% or more and hold those cuts for at least three years. Toronto, for example, secured up to $1.5 billion for cuts of 40% to 60% between 2026 and 2029. Rates still vary by city, so check locally before quoting savings.
Bill 60 and the New Rental Rules
The Fighting Delays, Building Faster Act, 2025 received Royal Assent on November 27, 2025. Its main rental changes:
- Shorter arrears notice: The N4 notice period for unpaid rent drops from 14 days to 7.
- Own-use path: A landlord who gives at least 120 days’ notice for their own or a family member’s use (not a buyer’s) no longer owes one month’s rent in compensation.
- Faster reviews: The window to request a review of an LTB order shrinks from 30 days to 15.
The N4 and own-use changes apply to notices given on or after September 21, 2026, and the 15-day review window has applied since July 1, 2026. Separately, the 2027 rent increase guideline is 1.9%, down from 2.1% in 2026, for most units first occupied on or before November 15, 2018.
What These Changes Mean for Buyers and Sellers
New-build buyers: The HST window is the biggest affordability lever in years, but only for agreements signed by March 31, 2027. Rebates do not protect you from closing delays or a cancelled project, so a builder’s track record still matters.
Resale buyers: Resale homes do not get the new HST relief, but some sellers may get more flexible as new builds compete for the same buyers. Read up on the $1.5 million insured mortgage cap before setting a price range. The Bank of Canada has held its policy rate at 2.25% since its October 29, 2025 cut, so check the latest decision before locking a rate.
Sellers: Expect more competition from rebated new builds, mostly condos and townhouses. Our look at whether the GTA condo market is bottoming shows how buyers are reading prices right now, which is useful context before you list.
Agents who explain all of this in plain language win more listings and referrals. That is one reason many agents join a GTA real estate brokerage with an in-house marketing team and ongoing training, instead of tracking every rule change alone.
Has Housing Supply Improved Yet?
Not yet. The 2026 Ontario Budget estimated about 65,400 housing starts in 2025, while the 2025 Budget had put 2024 starts at about 74,600. Hitting the province’s goal of 1.5 million homes by 2031 now means roughly 175,000 starts a year.
Policy takes time to reach the street. A development charge cut has to pass council, show up in a builder’s pro forma, then reach a launch price. Expect most of these measures to show up in 2027 and 2028 sales, not this fall.
What Agents Should Do Now
- Run the rebate math: Add HST relief to every new-build consultation and set CRM reminders before the March 31, 2027 deadline.
- Read the APS closely: Know how each builder handles rebate assignment so you can flag questions for the client’s lawyer early.
- Update landlord clients: Walk investors through the September 2026 notice changes and the 1.9% guideline.
If new construction is part of your business, our guide to pre-construction sales covers the basics agents need before working with new-build clients.
What to Watch in the Next 12 Months
- January 1, 2027: The 1.9% rent guideline applies, and new provincial rules give buyers of new freehold homes a 10-day cooling-off period, with forms and guidance from the Home Construction Regulatory Authority.
- March 31, 2027: The expanded HST rebate window for new agreements closes.
- Through 2029: Many municipal development charge cuts under the partnership stay in place.
Practical Takeaways
- Housing policy stayed focused on supply and upfront costs after the 2025 election.
- New-build buyers have a limited window for up to $130,000 in HST relief.
- Development charge relief is real but uneven by municipality.
- Supply has not caught up yet, so expect a lag between announcements and prices.
Frequently Asked Questions
Frequently Asked Questions
What housing policies changed after the 2025 Ontario election?
The main changes are Bill 17, Bill 60, temporary HST relief of up to $130,000 on eligible new homes, development charge cuts funded by the Canada-Ontario Partnership to Build, and a 1.9% rent increase guideline for 2027.
Who qualifies for Ontario’s expanded HST rebate on new homes?
Eligible buyers who sign a purchase agreement for a new home between April 1, 2026 and March 31, 2027, first-time or not. The home must be a primary residence or a qualifying long-term rental.
What is the Ontario rent increase guideline for 2027?
It is 1.9% for most rent-controlled units first occupied on or before November 15, 2018. Landlords must give 90 days’ written notice.
What did Bill 60 change for landlords and tenants?
It cut the N4 notice period for unpaid rent to 7 days, allowed a 120-day own-use notice without compensation, and shortened the LTB review window to 15 days. The N4 and own-use changes apply to notices given on or after September 21, 2026, and the review change has applied since July 1, 2026.
The Bottom Line
The 2025 election did not reset Ontario housing policy. It renewed the same government’s mandate, and the result has been a steady push on supply, tax relief for new homes and faster tenancy rules. For buyers and sellers, the key is knowing which rules apply to your property and timeline before you sign.
For agents, these changes are a chance to lead with knowledge. If you want ongoing training, an in-house marketing team and tech support behind you, book a confidential conversation with our Broker of Record and see whether RE/MAX Millennium fits the career you are building.
