On March 30, Premier Doug Ford and Prime Minister Mark Carney signed the Canada-Ontario Partnership to Build in support of shared goals, including building more homes faster to make housing more affordable, getting shovels in the ground on key transit projects and supporting economic development that will protect jobs and help communities grow, despite the impact of tariffs and economic uncertainty. The agreement includes $8.8 billion in federal and provincial funding over 10 years to support housing-enabling infrastructure investments for Ontario municipalities that reduce and maintain low development charges (DCs), as well as a Harmonized Sales Tax (HST) rebate to incentivize new home construction, and co-operation and financial support for a number of major transit projects.

"Today's agreement will be transformational for Ontario and Canada, delivering new homes, transit and infrastructure and supporting hundreds of thousands of good-paying jobs for Ontario workers," said Premier Doug Ford. "Our government will continue to deliver on our plan to protect Ontario in partnership with the federal government and municipalities by lowering the cost of building, getting shovels in the ground faster, cutting red tape and investing in workers."

A key pillar of the agreement is a shared commitment to boosting housing supply. Ontario and the federal government will cost-match a total of $8.8 billion over 10 years, focused on housing-enabling infrastructure projects. The majority of funding will be used to support the reduction by up to 50 per cent of municipal DCs, which can add hundreds of thousands of dollars to the cost of new homes in Ontario municipalities. This new infrastructure funding will offset much of the financial impact of DC reductions on municipalities. However, municipalities will also be expected to support DC reductions, so that all three levels of government are supporting increased housing supply and affordability. The province will work with municipalities and partners to put forward a list of infrastructure projects for approval with a focus on speed and efficiency. These strategic investments will encourage new home construction and reduce barriers and costs to housing development to help more people realize the dream of homeownership.

"Our new partnership with Ontario is about building more affordable homes, more transit and more careers in the skilled trades," said Mark Carney, Prime Minister of Canada. "We're tackling the housing crisis from every angle -- so we can build up housing supply and bring down costs for Canadians. We're building Ontario strong and Canada strong."

The Canada-Ontario Partnership to Build commits to the following:

• Harmonized Sales Tax (HST) Rebate on New Homes: Ontario and Canada will work together to remove the full 13 per cent HST for eligible buyers of new homes in Ontario valued up to $1 million and extend the maximum rebate amount of $130,000 to new homes valued between $1 million and $1.5 million. The federal government will provide Ontario a payment in the amount of $875 million, subject to passage of federal legislation, that may be applied against the federal five per cent portion of the HST that is being removed from new homes in Ontario. This partnership would provide an estimated $2.2 billion in total tax relief for housing in Ontario and provide homebuyers up to $130,000 in tax relief.
• Waterfront East Transit: three-way cost share between the Ontario government, the federal government and the City of Toronto to construct the Waterfront East Transit line serving Toronto's eastern waterfront, including the East Bayfront and Port Lands.
• GO 2.0: commit to working collaboratively to increase passenger service along freight-owned corridors across the Greater Golden Horseshoe region, to support improved service along existing GO lines and the potential creation of new GO lines in the Greater Golden Horseshoe.
• Alto High-Speed Rail (HSR): commit to working collaboratively to support the planning and advancement of the Alto HSR initiative that will connect millions of people living along the Toronto-Quebec City corridor.
• Priority transit projects in the Greater Toronto and Hamilton Area (GTHA): execute federal contribution agreements on announced transit projects, including the Ontario Line, Eglinton Crosstown West Extension, Scarborough Subway Extension, Yonge North Subway Extension and Hamilton LRT.

"I'm pleased to join with the federal and provincial governments in this partnership to build more housing, transit and support good jobs," said Olivia Chow, Mayor of Toronto. "The City of Toronto has taken bold steps to cut development charges on new homes, speeding up our development timeline and investing in affordable housing. Further, we have invested in the design of the Waterfront East Transit line. Today's historic announcement takes our work further and will deliver thousands more affordable homes and better transit, benefiting our city for generations."

This is a transformational opportunity between the Government of Ontario and the Government of Canada in partnership with municipalities. The Canada-Ontario Partnership to Build offers a clear path forward to keep projects moving and Ontario and Canada's economy growing, even in the face of U.S. tariffs and global uncertainty. By partnering with the federal government, Ontario is ensuring critical infrastructure projects get built, new housing is constructed and more good-paying jobs are made available to Ontario workers, making this province more competitive now and for future generations.

Additional Resources