Government Relations Updates
December 2024
Federal News
Bank of Canada Policy Rate Cut
On Wednesday, December 11, the Bank of Canada cut its policy rate by 50 basis points, bringing it down to 3.25%. This second consecutive 50 basis point reduction could impact the real estate market by reigniting activity with more buyers qualifying for financing and increasing confidence about their purchasing power. This is the final announcement for 2024. Read the full release here.
Mortgage Reforms
Last month, the Office of the Superintendent of Financial Institutions (OFSI) announced several changes to Canada’s mortgage rules, which take effect on December 15, 2024:
- Removal of the stress test for mortgage renewals. This will help enable borrowers to switch lenders while maintaining their loan amount and amortization period
- The CMHC-insured mortgage cap increased from $1 million to $ 1.5 million. This will allow buyers to purchase homes valued at up to $1.578 million with as little as 5% down on the first $500,000 and 10% on the remaining amount
- 30-year amortizations for first-time buyers and new builds, which will reduce monthly payments, making payments more affordable
The new mortgage changes could increase demand and alleviate financial pressure on buyers and current homeowners. More details here.
Canada Secondary Suite Loan Program
The federal government has announced measures to make it easier for homeowners to add secondary suites to their property. In early 2025, homeowners will be able to access low-interest loans of 2% and up to $80,000 to assist with the expenses related to creating secondary suites. Additionally, refinancing of insured mortgages will be allowed as of January 15 for up to 90% of the home’s post-renovation value up to a maximum value of $2 million, amortized up to 30 years. Homeowners can utilize both the loan program and mortgage financing to help cover the expenses of adding a secondary suite. For more info, click here.
Provincial News
Red Tape Reduction Package
The Ontario government introduced additional measures to address the housing crisis as part of the Fall 2024 Red Tape Reduction Package. Initiatives include making it easier for homeowners to build additional units like garden suites, laneway homes, and basement apartments by standardizing rules and eliminating the need for rezoning or variances. In addition, they introduced measures to streamline operations at the Landlord and Tenant Board (LTB) to reduce delays and improve access to justice for both landlords and tenants. For more information, click here.
City of Burlington
Draft Official Plan Amendment and Zoning By-law Amendment
Last month, we supported the Draft Official Plan and Zoning By-law Amendments in Report PL-92-24, which aim to enhance housing opportunities. We are pleased to see the emphasis on intensification while preserving Burlington’s established neighbourhoods. Cornerstone shared the following delegation in support of the Mayor and Council: click here.
Eligibility for Municipal Fee Waivers for new ADUs
Homeowners may qualify for municipal fee waivers for new Additional Residential Units (ADUs). Applications are open until 2026, subject to funding. For more details on this and other housing initiatives, visit here.
Mayor’s Luncheon
Cornerstone was pleased to sponsor the Burlington Mayor’s Luncheon hosted by the Burlington Chamber of Commerce earlier this week. Mayor Meed Ward highlighted several key initiatives, including the Pipeline to Permit committee, the introduction of free transit for seniors and youth, and the city’s record-high number of permits issued for developments. It was an excellent opportunity to connect with local stakeholders and discuss the City’s positive direction, particularly on the housing file.
On our radar… Short-term Rental Licensing.
City of Hamilton
Municipal Land Transfer Tax
We expect a municipal report exploring alternative revenue streams, including a potential Municipal Land Transfer Tax (MLTT), before Council on January 15. An MLTT would further exacerbate housing affordability. Should Hamilton pursue and receive provincial approval to implement an MLTT, we anticipate additional municipalities within the Cornerstone market area will do the same. As such, Cornerstone GR staff have a complete advocacy strategy to oppose a potential MLTT. Including a Public Opinion Polling presentation to Council on the day by Abacus Data and a homebuyer’s impact presentation by Cornerstone Chair Julie Sergi. Add this date to your calendars! We want Cornerstone members to fill the Council Chambers to show our opposition to the MLTT! More details to come.
New Affordable Homes in Downtown Hamilton
A federal/provincial partnership has been announced to build new affordable homes in downtown Hamilton. “The Government of Canada and the Government of Ontario announced a combined investment of over $1.9 million through the Canada–Ontario Community Housing Initiative (COCHI) to help build 24 affordable homes in Hamilton. This investment adds to the federal government’s previously announced investments to build and repair over 12,750 homes in Hamilton.” Details here.
Transforming Downtown Roundtable
Last month, Cornerstone attended a crucial roundtable discussion hosted by the Hamilton Chamber of Commerce to explore solutions to the economic and social challenges affecting Hamilton’s downtown. Housing is a key factor in revitalizing the area for the benefit of all. We look forward to continuing our partnership with the Chamber to discover innovative solutions that foster sustainable growth and revitalization in downtown Hamilton.
City of Mississauga
MBOT Event – In Conversation with Hon. Peter Bethlenfalvy, Minister of Finance
Join Cornerstone on Monday, December 16, from 7:45 a.m. to 9:45 a.m. at the Hilton Mississauga/Meadowvale for an update from Ontario’s Minister of Finance. Attendees will learn how the government is building a strong Ontario for people and businesses today and for future generations. Register here.
Inclusionary Zoning Program & Development Approvals
The City of Mississauga is reviewing its Inclusionary Zoning (IZ) program to provide more affordable housing in 2025. Since its conception in 2023, the IZ program has required developers to include affordable housing units around major transit stations. To this end, Council has opted to freeze current IZ rates until a new financial assessment report is completed, which will determine what adjustments are needed. Additionally, Council has been discussing amendments to streamline development approvals and has proposed recommendations to address updates in provincial legislation. The city promises to collaborate with developers and regional partners to meet the growing need for affordable housing.
Increasing Housing Choices in Neighbourhoods
The City is currently investing in a multi-phased project to introduce more housing options to Mississauga neighbourhoods. Tied to the City’s Housing Action Plan to get more homes built, the City is currently reviewing semi-detached homes and smaller lots, multiplexes, and a Community Land Trust. Cornerstone is actively monitoring this file. More details here.
Your City Mississauga’s 50th Anniversary
Cornerstone representatives were thrilled to attend this milestone celebration event to honour the City’s current and past mayors. At the event, Mayor Carolyn Parrish recognized the previous mayors’ success with the city’s growth and announced that “big changes are coming,” including better access to healthcare for residents, increased infrastructure, and making homes more affordable.
On our radar… Renoviction By-law.
Region of Waterloo
Habitat for Humanity/BUILD NOW Development on University Ave East
The City of Waterloo recently selected Habitat for Humanity/BUILD NOW as the potential partner for an affordable and attainable housing development on University Avenue East. This project stands to become the largest Habitat for Humanity undertaking in Canada, with an ambitious proposal of 1,010 housing units! Details here.
Waterloo Official Plan Amendment
The City of Waterloo recently approved an Official Plan Amendment to allow development up to 30 storeys as-of-right on some lands within Major Transit Station Areas and Notes (up from 25 storeys). Details here.
Four Units, Four Storeys throughout Waterloo
The City of Waterloo Council has unanimously approved a Zoning By-law amendment to allow Four Units and Four Storeys in low-rise residential neighbourhoods citywide. This change promotes gentle density by permitting up to four dwelling units on most residential lots, including detached units and small four-plexes, expanding housing options while addressing affordability challenges.
Vision 1 million Event Series
Cornerstone recently sponsored and attended both the Cambridge Chamber of Commerce and Greater Kitchener Waterloo Chamber of Commerce events focused on the future growth and development of the Region. Industry leaders and experts shared challenges and opportunities with housing, growing the workforce, and building better infrastructure as the region grows to 1 million by 2050.
On our radar… Rental Housing Licensing Review (Waterloo), Short-term Rental Licensing and Inclusionary Zoning to Support Affordable Housing (Kitchener).
Norfolk County
Development Infill Incentive Program
During the County’s most recent meeting, Mayor Martin directed staff to create a development infill incentive program to encourage builders to construct new housing – especially multi-unit projects – in areas with existing municipal infrastructure. The program will promote “responsible and sustainable” development by offering incentives such as reduced development charges or permit fees. Staff will present their recommendations to Council for consideration as part of the 2026 budget.