Reduce fees, taxes and red tape to increase housing supply and improve affordability: Senate report

Press Release

January 20, 2026

Ottawa – Expanding the GST/HST rebate on housing and helping municipalities reduce development charges and regulatory burdens will help ease Canada’s housing crisis, the Senate Committee on Banking, Commerce and the Economy said in a report released Tuesday.

The report, Out of Reach: Unlocking Canada’s housing affordability crisis, makes 12 recommendations to achieve key housing goals: lowering prices and increasing supply, cultivating a robust housing sector and improving access to housing for all Canadians.

Although population growth has receded and construction and land costs have tempered since the committee released its interim report on housing in December 2023, many markets across the country continue to face significant supply shortages and home prices remain out of reach for buyers.

Among the committee’s key findings were shocking disparities between Canadian municipalities in the average fees and development charges on single-family homes. Additionally, depending on the city, it can take anywhere between five and 31 months for a municipality to render a decision on a development application. In the Greater Toronto Area (GTA), however, the full process — from a builder’s first meeting with municipal officials to homes being ready for occupancy — can take up to 11 years.

The committee believes the severity and urgency of Canada’s housing crisis require swift and co-ordinated action from all stakeholders and levels of government.

Quick Facts

• The GST/HST New Housing Rebate allows an individual to recover 36% of the GST — or the federal part of the HST — that was paid on a new, substantially renovated or owner-built house that will be owner-occupied. The rebate applies to new housing valued at up to $350,000 and is phased out for homes valued between $350,000 and $450,000.
• The GST/HST New Housing Rebate was established in 1991; at the time, 95% of newly built homes met the rebate’s criteria. The rebate has not been updated since its introduction 35 years ago.
• The average level of municipal fees embedded in a single-family home in Toronto is $200,000, while in Moncton and Charlottetown, it is less than $10,000.

Quotes

“All Canadians should be able to access housing without taking on high levels of debt. Municipal, provincial and federal governments all contributed to housing unaffordability; each must now do its part to de-escalate what’s become a national crisis.”

– Senator Clément Gignac, Chair of the committee

“Canada’s housing system is broken. To fix it, governments can start by removing the hidden costs of development charges from homebuyers, while exploring alternative municipal funding models and expanding the GST/HST rebate on all new housing. Improved housing affordability for all Canadians requires more transparency and less regulatory burden.”

– Senator Toni Varone, Deputy Chair of the committee

Associated Links

• Read the report: Out of Reach: Unlocking Canada’s housing affordability crisis.
• Read the committee’s interim report: Study on Housing Affordability — Interim Findings.
• Follow the committee on social media using the hashtag #BANC.
• Subscribe to email alerts for Senate committees.
• Sign up for the Senate eNewsletter.

For more information:

Chelsea DeFazio
Communications Officer | Senate of Canada
343-576-1481 | chelsea.defazio@sen.parl.gc.ca

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