$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 inked a deal that aims to see more housing built in Ontario.
Prime Minster Mark Carney and Premier Doug Ford were in Toronto on Monday to announce that the two levels of government have agreed to $8.8 billion in federal and provincial funding over 10 years to support housing-enabling infrastructure. They include reducing and maintaining low development charges and an HST rebate.
The removal of the HST on new homes valued between $1 million and $1.5 million would bring an estimated $2.2 billion in total tax relief for housing in Ontario and provide homebuyers up to $130,000 in tax relief.
Carney says the measures are meant to increase the number of new home construction.
The deal would see municipalities reduce or eliminate development charges. The collection of these charges by municipalities are used towards maintaining infrastructure like roads, water, and sewer.
Ford says they have tried other ways to get municipalities to buy-in but believes the partnership between the two governments will motivate them to do so.
The funding will also be put into transit infrastructure including improvements to GO Transit and the construction of the new Alto high-speed rail line.
(Written by: Ken Hashizume)
