ONTARIO NEWS RELEASE: Ontario and Canada Making Homes More Affordable in Mississauga

MISSISSAUGA — Today, the governments of Ontario and Canada announced that the City of Mississauga is receiving up to $401.4 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 per cent for residential developments from January 29, 2025 to March 31, 2029. Furthermore, Mississauga is eliminating development charges altogether on rental units with one-bedroom plus den, two or three bedrooms until March 31, 2029. The funding recognizes Mississauga’s early leadership in reducing development charges. It will help build more homes and community infrastructure in the City of Mississauga while advancing the province’s plan to protect Ontario by investing in projects that lower costs for families, support economic growth and keep workers on the job.

“In the face of President Trump’s latest tariffs, we’re working with all levels of government to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes,” said Premier Doug Ford. “Mayor Parrish and Mississauga council were early leaders in lowering development charges and with today’s announcement of new provincial and federal funding for housing-enabling infrastructure, we’re continuing our progress to make homes more affordable for families in Mississauga and across Ontario.”

The reduction in development charges over this four-year period is estimated to reduce the cost of building new homes by up to $36,140 per home. When combined with the up to $130,000 in savings enabled through the expanded HST relief on eligible new homes, these initiatives could save Mississauga families up to $166,140 off the cost of a new home.

“Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why our government continues to deliver programs like the Development Charge Reduction Program alongside our federal partners, which helps provide cities like Mississauga with the funding they need to ensure their city remains a desirable place to live, work and raise a family. Congratulations to Mayor Parrish and the Mississauga City Council for working with us to bring the dream of homeownership within reach for more Mississauga families.”

In March 2026, Ontario and the federal government agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada’s share of the funding flowing through the Build Communities Strong Fund (BCSF). The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. This is in addition to cost reductions for builders through the DCRP.

“Together, we’re building Ontario and Canada strong,” said Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax. “By partnering with Ontario, the federal government is helping speed up housing construction by lowering up-front costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities.”

Mississauga estimates that the construction cost savings over the development charge elimination and reduction period, along with the investment in housing-enabling infrastructure, would unlock 90,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

“This is great news for the people of Mississauga — especially for those looking to buy a home, for those looking for a reasonably priced apartment and for workers in the construction sector,” said Carolyn Parrish, Mayor, City of Mississauga. “This significant funding from our provincial and federal partners will facilitate our investments in local transit and in critically needed infrastructure. We have led on cutting development charges. We are proud of that leadership.”

Subject to the signing of a Canada-Ontario BCSF agreement, further due diligence by both governments and the signing of an Ontario-municipal Transfer Payment Agreement, the DCRP will provide the City of Mississauga with up to $401.4 million to support housing-enabling infrastructure projects, including:

• Constructing a new zero-emission transit maintenance and storage facility in northwest Mississauga, including a bus storage area, maintenance garage and associated infrastructure
• Delivering integrated transit infrastructure in downtown Mississauga, including the Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities, utility relocations, as well as infrastructure that supports retail, office, housing and surrounding development.

As part of the Canada-Ontario Partnership to Build, the DCRP is delivering funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or greater and maintain the reductions for at least three years.