Rental Property Tax Deductions Canada: What Ontario Landlords Need to Know

Property Tax Michael Greene 19 Dec

Rental property tax deductions in Canada is one of the easiest ways Ontario landlords can reduce how much tax they pay — yet it’s also one of the most misunderstood topics.

Many landlords miss deductions not because they’re careless,
but because the rules feel confusing and overly technical.

Let’s simplify it.

How Rental Property Tax Deductions Work in Canada

In Canada, any rent you collect is considered taxable income.

That part is clear.

What’s often missed is this:
you’re only taxed on what’s left after eligible expenses are deducted.

This is the foundation of rental property tax deductions Canada.

Here’s the basic idea:

Rental income – rental expenses = taxable rental income

You pay tax on the smaller number — not the full rent collected.

Common Rental Property Tax Deductions Canada Allows

Depending on your situation, rental property tax deductions Canada can include several everyday costs.

Mortgage Interest

You can usually deduct:

Interest paid on a rental mortgage
Interest on borrowed funds used for renovations

You cannot deduct:

Mortgage principal payments

Property Taxes

Municipal property taxes related to the rental are deductible.

If you rent out part of your home (like a basement):

Only claim the rental portion
This is usually based on square footage

Insurance

Property insurance for the rental unit is deductible.

Again, if it’s part of your home:

Claim only the portion tied to the rental space

Utilities

You may deduct utilities you pay for, such as:

Heat
Electricity
Water
Cable

For basement apartments, only deduct the rental portion.

Repairs vs. Improvements (A Common Mistake)

One area where landlords struggle with rental property tax deductions is understanding repairs versus improvements. Repairs are generally fully deductible in the year they occur, while improvements are considered capital expenses and are deducted over several years through Capital Cost Allowance (CCA).

Repairs

Fix something back to its original condition
Often deductible in the same year

Examples:

Fixing drywall
Replacing a broken fixture

Improvements

Increase the value or lifespan of the property
Written off over time, not all at once

Examples:

New flooring
Kitchen upgrades

Mixing these up is a common CRA issue.

Rental Property Tax Deductions for Basement Suites

If you rent out part of your main home, rental property tax deductions require you to be proportional.

This means:

Claim only the percentage used as a rental
Use square footage or reasonable usage
Be consistent year to year

This applies to utilities, insurance, and property taxes.

Why Rental Property Tax Deductions Affect Cash Flow

Taxes are only one piece of the picture.

Your rental property tax deductions, mortgage structure, and cash flow all work together.

When they’re aligned, you may:

Keep more money each month
Reduce financial stress
Make better long-term decisions

Sometimes, a small mortgage adjustment can improve cash flow more than people expect.

Final Thoughts for Ontario Landlords

Rental property tax deductions can make a real difference — but only if they’re understood and used correctly.

I don’t sell mortgages.
I help people understand their options so they can move forward with confidence.

Frequently Asked Questions: Rental Property Tax Deductions in Canada

What rental expenses can landlords deduct in Canada?

Landlords can usually deduct eligible expenses from their rental income before paying tax. Common deductible expenses include mortgage interest, property taxes, insurance, utilities, repairs, and professional fees. You are taxed only on the net rental income after expenses.

Is rental income taxable in Canada?

Yes. All rental income must be reported to the CRA. However, eligible expenses can be deducted first, which reduces the amount of income you’re taxed on.

Can I deduct my full mortgage payment on a rental property?

No. Only the interest portion of your mortgage payment is deductible. The principal portion is not considered a rental expense.

What expenses are deductible in the same year they’re paid?

Expenses that maintain the property — often called current expenses — are usually deductible in the year paid. These may include repairs, maintenance, insurance, advertising, and accounting fees.

What’s the difference between repairs and improvements?

Repairs restore the property to its original condition and are often deducted right away. Improvements increase the property’s value or lifespan and are written off over time. Mixing these up is a common tax mistake.

Can I deduct expenses if I rent out my basement?

Yes. If you rent out part of your primary residence, you can usually deduct a portion of expenses such as utilities, insurance, and property taxes. The amount is typically based on square footage or usage.

Are utilities deductible for rental properties?

If you pay utilities like heat, electricity, or water, you may deduct the portion related to the rental unit. If the rental is part of your home, only the rental portion applies.

What CRA form is used to report rental income and expenses?

Most landlords use Form T776 to report rental income and expenses. This helps keep everything organized and consistent with CRA requirements.

Why does my mortgage strategy matter for rental properties?

Your mortgage structure affects cash flow, tax efficiency, and long-term planning. In some cases, adjusting how a rental mortgage is set up can improve monthly finances and flexibility.

📩 If you own a rental property in Ontario and want to review your mortgage or cash flow strategy, send me a quick message or book a call.

No pressure. No judgement. I’ll break it down clearly.

— Mike

Mortgage Agent Level 2| Ontario
Dominion Lending Centres Edge Financial #10710

Closing Canada’s Housing Gap: Why 700,000 Homes Are Still Missing

Housing Michael Greene 4 Sep

Canada’s Housing Gap 2035 – What You Need to Know

The latest report from the Parliamentary Budget Officer (PBO) sheds light on Canada’s housing gap—and the numbers aren’t encouraging. Despite government efforts to slow demand through reduced immigration targets, Canada is still projected to be short nearly 700,000 homes by 2035.

Let’s break it down.

The Numbers Behind the Shortage

Homes needed (2025–2035): 3.2 million
Homes expected to be built: 2.5 million
Gap remaining: 690,000 homes

To close that gap, Canada would need to outperform its all-time construction record every year for the next 11 years straight. For context, 2024 saw the highest number of housing completions on record—276,000 units. Matching or beating that pace until 2035 would be unprecedented.

How Immigration Impacts Canada’s Housing Demand

Last year, the government reduced its immigration targets:

Permanent resident targets were cut for 2025 and 2026.
Fewer international students and temporary residents are permitted.

At the peak in 2024, immigration created 482,000 new households looking for homes. With the new limits, that figure is expected to drop to 176,000 per year until 2030.

While lower immigration reduces demand, it doesn’t erase the housing gap. Canada still needs millions of homes built—and fast.

Canada’s Housing Gap Affects Ontario’s Housing Starts

Canada overall is seeing a strong year in housing starts—over 263,000 as of July. But Ontario, where demand is highest, has seen housing starts fall by almost 70% compared to last year.

This creates a deeper affordability problem in the province where buyers and renters are already stretched the most.

The Government’s Housing Plan

During the last election, Prime Minister Mark Carney pledged to double housing construction and launch a new federal agency, Build Canada Homes, focused on building affordable housing.

But as of today, the agency has not been set up. Housing Infrastructure and Communities Canada says it’s still “refining the approach.” Canadians are left waiting for clear action.

What This Means for Canadians

For anyone looking to buy, sell, or invest, the Canada housing gap 2035 report is clear:

Affordability challenges aren’t going away anytime soon
Supply will remain tight, even with immigration cuts
Homebuyers may face rising competition, especially in high-demand markets like Ontario

The bottom line: Canada needs to build more homes than ever before, and until that happens, prices are unlikely to stabilize in a meaningful way.

Call to Action

If you’re a homeowner or future buyer worried about affordability, you don’t have to wait for government policy to catch up. At Mortgage With Mike, I work hard to help clients find mortgage solutions that work—even in today’s market.

📩 Let’s talk about your options. Reach out today to see how you can make the most of your buying or refinancing strategy. Book a 15-minute call now!

How Long Does a Consumer Proposal Stay on Your Credit Report in Canada?

Homeownership Michael Greene 26 Aug

A consumer proposal credit report shows a note in the legal/public records section indicating the proceeding type and dates. It won’t haunt your credit forever—but it can feel that way if old notes linger on your file. If you’ve completed your proposal and are ready for a mortgage renewal or new credit, you deserve a clean slate. Let’s break down how long it should stay, what should be removed, and what to do if outdated remarks are still holding you back.

How Long Does a Consumer Proposal Stay on Record?

Most consumer proposals last five years, usually with fixed monthly payments. After completion, the credit bureaus apply different rules:

Equifax: Removed 3 years after completion or 6 years from filing—whichever comes first.
TransUnion: Removed 3 years after completion or 6 years from the date of default—whichever comes first.

👉 Example: If you finished your proposal in early 2022, it should be purged from your report by early 2025, even if you filed it only months before paying it off.

Note: Rules may vary by province. Always confirm directly with Equifax and TransUnion.

What Should Disappear vs. What Should Stay

When a consumer proposal is cleared, it should be removed from:

The public records section of your credit file
Each individual account included in the proposal

If you’re still seeing notes like “Account closed, included in proposal” or “Written off as part of a proposal”, those are outdated and shouldn’t remain once the proposal is gone.

Why Leftover Notes Still Hurt You

Even closed accounts with $0 balances can drag you down if they still carry negative remarks. Lenders—especially mortgage lenders using Equifax—may treat you as if you’re still in recovery, even though you’ve moved on.

Worse, an unnecessary credit denial based on stale notes can further damage your profile, making it harder to qualify for the rates and terms you deserve.

What to Do if Your Credit Report Hasn’t Caught Up

Order your full reports from both Equifax and TransUnion—not just summaries.
Highlight outdated remarks tied to your proposal. Screenshots help.
Hold off on new applications until corrections are made—rejections only make things worse.
File disputes yourself, or work with a professional who knows the system.

Tip: Credit file experts like Richard Moxley (a CMT contributor) specialize in getting Equifax and TransUnion to correct errors effectively.

The Bottom Line

Once your consumer proposal is behind you, your credit report should reflect it. If it doesn’t, that’s not your fault—but it is your responsibility to fix it.

Clean up your report before applying for a mortgage or new credit. A few lingering notes can cost you thousands in higher interest or even lead to declines. Take control now, and you’ll be in a much stronger position to move forward with confidence.

👉 Get a your free credit report here.

Ready to move forward with confidence? Get your credit report cleaned up before applying for a mortgage or new loan. Reach out today and leave your contact information or schedule a 30-minute strategy call and let’s make sure nothing holds you back.

Mortgage Industry Supports Habitat for Humanity: Tackling Housing Affordability

Affordable Housing Michael Greene 21 Aug

The mortgage industry supports Habitat for Humanity in a powerful new partnership aimed at tackling Canada’s housing affordability crisis. Mortgage Professionals Canada (MPC) has pledged $100,000 and volunteer support to help build 10 homes across the country.

This collaboration unites two organizations committed to improving access to affordable housing. It also gives mortgage brokers a meaningful way to raise their profile while making a real difference in Canadian communities.

Why the Mortgage Industry Supports Habitat for Humanity

According to Maxime Stencer, incoming MPC board chair, the partnership is about more than housing—it’s about community.

“Habitat exemplifies people coming together from all walks of life to help their community,” Stencer explains. “For brokers, it’s not just about giving money—it’s about picking up hammers and saws so the community can see mortgage professionals giving back.”

The search for a partner began during MPC’s restructuring last year. Habitat for Humanity stood out because it operates nationwide, aligns with MPC’s mission, and shares a strong focus on affordable homeownership.

Two Organizations, One Mission

Pedro Barata, President and CEO of Habitat for Humanity Canada, emphasizes that Habitat focuses on homeownership opportunities for Canadians facing significant barriers, especially families who struggle to save for a down payment.

“Habitat Canada is about giving families a chance to build equity, stability, and a brighter future,” Barata says. Unlike many public housing efforts that focus on rentals, Habitat’s approach closes the gap by making ownership possible.

Through volunteer support, donated land, and reduced development costs, Habitat helps families move from renting to owning. This effort doesn’t just create homes—it creates stability for generations.

The Proven Impact of Homeownership

The numbers speak for themselves. A 2025 Deloitte Canada study revealed that Habitat homeowners reported:

79% boost in mental health
73% improvement in physical health
44% rise in employment
Better school performance for children
Greater financial security for families

Families who moved into Habitat homes earned 28% more income compared to renting, generating $168 million for Canada’s GDP between 2006 and 2023.

These results highlight why the mortgage industry supports Habitat for Humanity—because affordable homeownership strengthens both families and the economy.

Building Homes, Building Awareness

This partnership doesn’t stop at construction. By collaborating with MPC, Habitat Canada gains more visibility, spreading awareness about its mission nationwide.

“Mortgage professionals understand firsthand the barriers families face,” says Habitat development officer Shahla Habib. “Their support has been incredible, and it’s helping us bring more affordable housing to communities across Canada.”

The mortgage industry’s involvement ensures Canadians see brokers not only as financial experts but also as community builders—literally and figuratively.

Final Thoughts

The mortgage industry supports Habitat for Humanity because the mission is clear: help families achieve affordable homeownership and strengthen Canadian communities.

Together, Mortgage Professionals Canada and Habitat for Humanity are proving that when industries and non-profits unite, the results go far beyond bricks and mortar—they build futures.

I will be volunteering my time to help support the cause in any way that I can. If you would like to volunteer as well reach out to me Mortgage With Mike or 416-820-1891

Greater Toronto Housing Market Heats Up—But Trouble Could Be Brewing Beneath the Surface

Economy Michael Greene 7 Aug

The Greater Toronto housing market roared back to life in July, recording its busiest month in four years. After months of hesitation and economic anxiety, buyers finally jumped back in—but for how long? According to the Toronto Regional Real Estate Board (TRREB), sales jumped 10.9% year-over-year, with 6,100 homes changing hands. It’s a remarkable shift—but experts warn that uncertainty, rising tensions, and dashed expectations could be right around the corner.

Buyers Flood Back—But Not Everyone’s Breathing Easy

Many buyers had spent spring sitting on the sidelines, paralyzed by mixed economic signals and the threat of further financial instability. But come July, that wait-and-see approach flipped—and fast.

“People were holding off,” said Bosley Real Estate broker Davelle Morrison. “But in July, I think people realized this economic limbo might not go away anytime soon. They just had to make their move.”

In other words, many jumped in—not because they were confident, but because they were tired of waiting.

Price Drops Spark Movement—But Relief Could Be Short-Lived

One major driver behind the sales surge? A dip in prices. The average sale price across the Greater Toronto housing market fell 5.5% from last year to $1,051,719, and the benchmark price—a typical home value—also slid 5.4%.

TRREB President Elechia Barry-Sproule called the price adjustment a much-needed break, but she was quick to add: “We still need more relief, especially when it comes to borrowing costs.”

Even with this improvement, the pressure remains high. Affordability is improving slightly, but it’s still tight—and many wonder if this is just a temporary reprieve.

The Spring Slowdown Is Over—But Shadows Linger

Earlier in the year, sales were falling fast:

April: Down 23% year-over-year
May: Down 13%
June: Down 2%

Buyers were spooked by inflation, the uncertain U.S.–Canada trade environment, and rising interest rates. But in July, the floodgates reopened.

“We had clients who paused in March and April, some came back in July, but even now, a lot of people are still uneasy.” said Davelle Morrison, a broker with Bosley Real Estate Ltd.

Inventory Is Rising, But So Are the Stakes

The Greater Toronto housing market also saw a significant increase in inventory:

New listings in July: 17,613 (up 5.7% from July 2024)
Active listings: 30,215 (up 26.2%)

More listings should mean more choice—but with more choice comes more pressure, especially for sellers trying to hit lofty price targets.

TRREB’s Chief Market Analyst, Jason Mercer, noted that while more homes are available, the broader Canadian economy is still treading water. The housing sector may be providing a boost—but it’s not enough to calm the storm just yet.

Bank of Canada Holds Rates, But Anxiety Remains High

The Bank of Canada left its key interest rate untouched at 2.75%—the third pause in a row. While it hinted at future rate cuts, no one’s holding their breath. Inflation is still sticky, and uncertainty around trade and consumer spending looms large.

Governor Tiff Macklem said the economy has shown “some resilience,” but also admitted the fight against inflation is far from over.

The Fall Market Could Be Rocky—Don’t Count on a Repeat

Despite the recent burst of activity, experts say the fall market might struggle to keep the momentum going.

“I’m not expecting fireworks in the fall,” said Morrison. “There are sellers who think they’ll relist and get their spring prices—and I just don’t see that happening.”

Sellers hoping for a bidding war may be disappointed. The market is stabilizing, but not necessarily in a good way.

Where the Sales Happened—and What Types of Homes Moved

The Greater Toronto housing market saw growth across the board in July:

City of Toronto: 2,205 sales (up 11%)
Rest of GTA: 3,895 sales (up 10.9%)
Semi-detached homes: up 25.5%
Detached homes: up 11.3%
Townhouses: up 7.9%
Condos: up 5.8%

Final Thoughts: Is This a Comeback or a Cautionary Tale?

Yes, the Greater Toronto housing market just had its strongest July since 2021. But while the numbers are up, so are the risks. Beneath the surface lies uncertainty, inflation pressure, and cautious consumer sentiment.

Buyers and sellers alike should proceed with care—this market may be warming up, but the temperature can change fast

✅ Ready to Make a Move in the Greater Toronto Housing Market?

Whether you’re buying, selling, or just trying to figure out your next step, now is the time to get expert guidance. The market is shifting—and the right strategy could save you thousands.

📞 Book a free 15-minute consultation
📩 Get custom mortgage advice based on today’s rates
🔍 Explore your buying power before the fall market hits

👉 Click here to get started or call (416-820-1891) — let’s navigate the market together.

Pandemic Purchases Now Underwater for Some Canadian Homeowners

Homeownership Michael Greene 18 Jul

Let’s be candid: If you bought a home during the pandemic rush, especially in one of Canada’s “boomtowns,” you might be feeling the pressure today. A growing number of homeowners are finding themselves in a tough spot — owing more on their mortgage than what their home is currently worth.

What happened?

When COVID-19 hit, a lot changed — including how Canadians viewed their living space. With record-low interest rates, remote work becoming the norm, and a desire for more space, people made big moves. Literally.

From the Greater Toronto Area to suburban pockets in Ontario, B.C., and Alberta, buyers jumped into the market, hoping to lock in a low rate and ride the price wave. And for a while, that worked.

But now that wave has pulled back.

According to the Canada Mortgage and Housing Corporation (CMHC), the pandemic-driven housing boom saw home prices in many regions spike by over 50% between 2020 and early 2022. Now, in 2024–2025, some of those same markets have seen values dip anywhere from 10% to 20% depending on location and property type.

The result?

A growing number of homeowners are “underwater” — meaning their mortgage balance is higher than their home’s current market value. That makes selling difficult and refinancing even tougher.

Recent data from Equifax Canada shows that mortgage delinquencies are starting to rise, particularly among newer homeowners and in provinces that saw the sharpest price increases and subsequent declines.

In some Ontario suburbs, like Durham Region, Barrie, and Niagara, values are down significantly from their peak. And if you put less than 20% down — or took on a variable-rate mortgage — the numbers might not be in your favour right now.

What’s causing this imbalance?

It’s a combination of:

Higher interest rates: The Bank of Canada has pushed its key rate from 0.25% in 2021 to 5% by mid-2025. That’s cooled demand — fast.
Increased inventory: Builders responded to the pandemic demand by ramping up construction. Now some of those homes are sitting on the market longer.
Price correction: After the frenzy of 2021, many markets are simply rebalancing. This isn’t a crash — it’s a recalibration.

What does this mean if you’re looking to sell?

If you’re underwater, selling might not cover your mortgage. That means you’d have to make up the shortfall out-of-pocket — a tough pill to swallow, especially in a time of higher cost of living.

So, should you panic?

No. Let’s keep things in perspective.

While some buyers are underwater on paper, that doesn’t necessarily mean disaster. If you plan to stay in your home and ride this out, time is on your side. Canada’s population is growing (thanks to strong immigration), and long-term housing demand remains solid — especially in cities like Toronto, Ottawa, Calgary, and Halifax.

But if you need to sell or refinance soon, it’s important to get the right advice. There are options — including second mortgages, equity take-outs, or alternative lending strategies — but you need to approach it smartly.

Bottom line?
The pandemic housing frenzy left some scars. But if you’re feeling stuck, don’t stress in silence. Reach out. Let’s talk strategy, not panic. You’ve got options — even if things feel tight right now.

— Mortgage With Mike

Prefab Backyard Homes: Build Smart, Live Better

Prefab Michael Greene 16 Jun

Looking for extra income, space for loved ones, or a creative way to add housing? Prefab backyard homes might be the solution you’ve been waiting for. With faster build times, lower costs, and growing government incentives—this once “alternative” idea is now going mainstream.

Let’s break down why prefab homes and secondary suites are on the rise, how much they cost, what funding is available (some up to $90,000!), and how real Canadians are using them to change the game.

Why Prefab Homes Are Booming

Prefab homes (also known as modular or factory-built homes) are built off-site, then delivered and assembled on your property. They’re fast, efficient, and designed to meet the same building codes as traditional houses.

Top benefits:

Faster builds – Often move-in ready in weeks
Lower costs – Fewer surprises and less waste
Eco-friendly – Smaller carbon footprint
Zoning-friendly – Many cities now allow garden or laneway suites
Government support – Big incentives for homeowners

This isn’t just about trends—it’s about real solutions for housing supply, affordability, and family living.

Funding for Prefab Backyard Homes: What’s Available?

Cities across Canada are offering generous incentives for homeowners who add an Additional Residential Unit (ARU) like a prefab suite or laneway home. The goal? Boost affordable rental options and support multi-generational living.

Example: London, Ontario

$45,000 interest-free loan – repayable over 9 years
$45,000 forgivable loan – if rented below market rate for 10 years

That’s up to $90,000 in support for homeowners—no developer status needed.

Other Municipal Incentives

Toronto – Up to $50,000 forgivable loan
St. Catharines – Up to $80,000 in grants
Peel Region – Up to $30,000 forgivable loan
Ottawa – Offers zoning and planning support

Requirements typically include:

Long-term rentals (not Airbnb-style)
Affordable rent based on CMHC guidelines
Local permit and insurance compliance

Real Story: The Bakers’ Backyard Prefab Success

Mark and Sarah Baker built a 750 sq. ft. prefab suite behind their home. They worked with Axe Living, a modular builder in Ontario. The results?

Unit arrived 80% complete
Move-in ready in under 3 weeks
Built for about $300/sq. ft., including taxes and hookups
Cheaper than traditional construction by 25–30%

With municipal funding, their build became even more affordable.

How to Finance a Prefab Backyard Home

You don’t need to refinance your whole mortgage to fund a secondary suite. Here are smart financing options:

HELOC – Flexible, great for homeowners with equity
CMHC Secondary Suite Refinance Program – Borrow up to 90% of your home’s value
Construction loan – Good for larger or staged builds
Second mortgage – Useful if you want to leave your first mortgage intact

Tip: Work with a mortgage advisor who understands ARUs and prefab housing.

Insurance for Prefab Homes: What to Watch Out For

Not all insurers understand modular homes yet. The Bakers had to switch insurers when theirs declined coverage. Their new policy came with a 40% premium increase.

To avoid surprises:

Call your provider early
Ask specifically about prefab and ARU coverage
Confirm both homes are fully insured

What If You Sell Before the Loan Term Ends?

Good news: in cities like London, the forgivable loan may transfer to a new owner—if they continue to rent the unit affordably. If not, a portion of the loan may need to be repaid.

This flexibility makes prefab homes a great investment even if you plan to sell in a few years.

Prefab Homes for Families

Prefab homes aren’t just about income—they’re a lifeline for families.

Help aging parents live independently
Support loved ones with disabilities
Keep adult children nearby without crowding
Stay close, while respecting privacy

Programs like London’s forgivable loan help make this kind of housing truly attainable.

Ready to Explore Prefab Homes?

If you’ve got the space and the vision, now is the time. Between funding options, faster builds, and flexible zoning, prefab homes are finally getting their moment.

Your next step? Let’s talk.

As a mortgage professional, I help homeowners like you finance modular builds, unlock equity, and take advantage of municipal grants. I’ll walk you through it.

📞 Call today or book a free consultation to explore your options.

The Government’s Plan To Use The GST Rebate To Help More People Buy

Pre-Construction Michael Greene 13 Jun

The Canadian government wants to help people buy new homes by giving a GST rebate, which means buyers get some tax money back.

But, there’s a big question: How much will it cost?

The government says $3.9 billion over five years, but another group thinks it’ll be about $2 billion. That’s a big difference!

What Are Canada’s Big Challenges in 2025?

Before we look at homes, let’s see what’s going on in Canada this year:

Trade wars: The U.S. has put new tariffs on Canadian goods, like lumber and aluminum, making it harder for Canadian companies and builders.
Slow population growth: Canada is taking in fewer new people, so fewer new workers and home buyers according to monitory policy report from the Bank of Canada
Rising unemployment: Canada’s job trouble continues as more people are without jobs—around 7% in May, the highest it’s been in nearly 9 years
Interest rates changing: The Bank of Canada is cutting rates to help, but people still owe a lot and get less spending room.

In short, Canadians are feeling worried about spending money. Jobs and housing prices haven’t been great lately .

How the GST Rebate Might Help

By giving money back to new home buyers, the government hopes:

More people will buy newly-built homes.
Builders will start more houses and condos—especially in cities like Toronto where condo sales are slow.
This could create jobs for builders and more homes for families.

But Let’s Talk About the Problems

Building things isn’t easy right now. Here’s why:

High costs: It costs a lot to borrow money and buy materials.
Fewer skilled workers: Many experienced builders are retiring.
Paperwork delays: Building permits take a long time.
Trade issues: The tariffs make things more expensive

Plus, if people think they’ll get a rebate, builders might raise their prices for materials and labour. That means houses might not get cheaper—just cost more. That could make it harder for everyone.

When Would the Rebate Start?

If the parliament agrees, here’s the idea:

Applies to new homes bought from May 27, 2025, to 2031.
Construction has to start by 2031 and finish by 2036.
It’s packaged with a tax cut that starts July 1, 2025.

✅ Why It Matters

Right now, Canada’s economy is having a tough time—with trade tensions, fewer jobs, and slow population growth. The GST rebate might help by encouraging more homebuilding and giving buyers a break.

🗣️ What Is Being Said

The government believes the GST rebate can help people afford homes and restart construction. But experts warn that unless more houses are built fast, costs won’t come down. We might even see prices go up if builders just raise their prices.

💭 My Opinion

I think the rebate could be a smart start to help Canadians buy homes in 2025—but only if it’s matched with bigger efforts to simplify building permits, train workers, and reduce trade costs. Without that support, it could end up just making houses more expensive—and that’s the last thing people need.

Ontario’s Housing Legislation: Faster Builds, Fewer Delays

Housing Michael Greene 12 May

Big changes are coming to the housing market by way of the Ontario’s Housing Legislation. On Monday, the province is introducing sweeping new legislation aimed at fast-tracking construction and tackling the housing crisis head-on. Whether you’re a buyer, builder, or investor, this move is worth watching.

The headline? Ontario’s Housing Legislation—officially called the Protect Ontario by Building Faster and Smarter Act—is giving the province more control over how, where, and how fast housing gets built.

What’s Changing Under Ontario’s Housing Legislation?

Expanded Minister’s Zoning Orders (MZOs): The province is doubling down on its use of MZOs, which allow them to override municipal planning processes and fast-track developments. That means less waiting, more building.
Standardized Development Charges: Development fees (used by cities to fund sewers, roads, and other services) will be standardized and paid at the end of construction, not upfront. This move aims to ease cash flow for builders—but could strain municipal budgets in the short term.
No Extra Studies or Local Rules: Municipalities will no longer be able to require additional studies or construction requirements that go beyond Ontario’s provincial building code. It’s one set of rules across the board.
School Boards Get More Power: School boards can now bypass some municipal approvals to add portables or new school buildings more quickly—great news for growing communities.
“Buy Canadian” Focus: The bill encourages the use of Canadian-made building materials to support local industry and stabilize supply chains.

Why Ontario’s Housing Legislation Matters

For homebuyer, this legislation could accelerate the pace of new housing, especially in high-demand areas. More housing options usually help cool prices and increase inventory—though there are still a lot of moving parts.

For builder or investor, these changes reduce financial pressure up front and potentially make projects more feasible. Less red tape means faster timelines—but you’ll need to keep up with new provincial regulations.

For municipal leader, this is where it gets tricky. Cities rely heavily on development fees to fund local infrastructure. Delaying that revenue could impact roads, water systems, and other vital services unless the province steps in to help.

What the Province Is Saying

Rob Flack, Ontario’s Minister of Municipal Affairs and Housing, called it a bold step to tackle economic uncertainty and accelerate home construction. “We are pulling out all the stops,” he said, noting that the plan responds to feedback from municipal leaders who are also looking for faster housing solutions.

Vaughan’s mayor called the legislation “bold and creative,” while Mississauga’s mayor welcomed it as “much needed support” to cut red tape.

My Take as a Mortgage Agent:

Ontario’s Housing Legislation sends a clear message: the province is willing to take the wheel to hit its housing targets. For buyers, it may mean more supply and slightly more breathing room in the long term. For developers, it’s a boost in momentum. For cities—well, the transition could be rocky, but the goal is clear: build more, faster.

It’s too early to say how everything will unfold, but one thing’s certain—if you’re thinking about buying, building, or investing in Ontario real estate, staying informed will be your biggest asset.

Have questions about how this might impact your mortgage strategy, construction financing, or investment property planning? Reach out—let’s talk about how to stay ahead in a fast-changing market.

Variable Rate Mortgage Holders Celebrate With Rate Announcement

Prime Rate Drop: What Homeowners and Buyers Need to Know

On Wednesday, Canada’s six major banks announced a quarter-percentage-point reduction in their prime rates, dropping from 5.45% to 5.2%. This follows the Bank of Canada’s decision to lower its key interest rate for the sixth time since June, bringing it down to 3%. The central bank stated that inflation is hovering near its 2% target as the economy gains momentum.

This change will likely result in lower variable mortgage rates across Canadian lenders. My calculations show that for a homebuyer who made a 10% down payment on an average Canadian home, priced at $700,0000 as of December 2024, the reduction would translate to roughly $83 less in monthly payments on a five-year variable mortgage.

While fixed mortgage rates are expected to decrease slightly, driven by bond yields dropping to around 2.8% following the central bank’s announcement, investors are concerned that inflation may limit any significant drops in fixed rates.

Homeowners with variable-rate mortgages are likely to feel the impact immediately. Those with adjustable-rate mortgages will see their monthly payments decrease, while those with a fixed payment schedule will have more of their payment applied to the principal rather than interest.

For example, I estimate that a homeowner with a variable mortgage rate of 4.45% over 25 years, currently paying $3,458 per month, would see their rate drop to 4.2%, lowering their payments to $3,371—a savings of $1,044 per year.

Homeowners with a variable-rate mortgage can expect to save around $16 per month for every $100,000 of mortgage debt with each quarter-percentage-point decrease. He also noted that this rate cut arrives at a time of economic uncertainty, though there’s potential for growth in home sales.

“These successive rate cuts are good news for homeowners and those renewing their mortgages,” Tran said. “While the housing market is showing signs of life, it’s not the frenzy some anticipated. Buyers are in a strong position to take their time finding the right property and making conditional offers on financing and inspections.”

Since the peak of borrowing costs in August 2023, homeowners who put a 10% down payment on an average-priced home with a five-year variable mortgage have seen their payments drop by $680, according to research. At the height of rates, a 5.95% variable mortgage on a $660,000 home would have resulted in monthly payments of $3,850. With current rates at 3.95%, that figure has dropped to $3,155.

Phil Soper, president and CEO of Royal LePage, said the Bank of Canada’s latest rate cut could boost borrowing power for homebuyers. “This decrease comes right before the spring housing market, a time when demand typically increases. We should expect an uptick in buying and selling activity in the coming weeks,” Soper noted.

However, be cautioned by the potential U.S. tariffs expected to transpire on February 1st, 2025. A remain concern for both the central bank and consumers, adding an element of uncertainty to the housing market.

In conclusion:

With the latest rate cuts from the Bank of Canada and the major banks following suit, homeowners and buyers are seeing tangible relief in their mortgage payments. While variable-rate mortgage holders stand to benefit the most, even fixed-rate borrowers could see slight reductions. As the spring housing market approaches, this rate drop may help boost real estate activity, giving buyers more flexibility and negotiating power. However, lingering economic uncertainties, such as potential U.S. tariffs, remain in the background, reminding consumers to stay cautious as they navigate the evolving market.

Whether you’re considering refinancing, renewing, or entering the housing market, connect with a Mortgage With Mike today to explore how these changes can benefit you.

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