$8.8 billion will be spent over 10 years that will see development charges lifted and full HST removal on new homes.
The provincial and federal governments have reached an agreement designed to boost housing availability in Ontario.
Prime Minister Mark Carney and Premier Doug Ford were in Toronto on Monday to announce a commitment of $8.8 billion from both the federal and provincial governments over the next decade to support housing-related infrastructure. This includes lowering and keeping development charges low, along with an HST rebate.
The removal of the HST for new homes priced between $1 million and $1.5 million is expected to deliver around $2.2 billion in total tax relief for Ontario’s housing market, giving homebuyers up to $130,000 in tax savings.
Carney mentioned that these initiatives are intended to promote new home construction.
The agreement encourages municipalities to reduce or eliminate development charges. These fees help fund infrastructure maintenance such as roads, water systems, and sewer services.
Ford noted that they have explored other methods to encourage municipal participation but believes this collaboration between the two levels of government will inspire action.
The funding will also support transit improvements, including enhancements to GO Transit and the construction of a new high-speed rail line called Alto.
Story by Ken Hashizume
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