Ontario's Proposed Building Act: Key Changes That Could Impact Your REI Projects

Ontario's Proposed Building Act - What REIs Need to Know

The Ontario government has just introduced a new bill (not yet passed) that could bring major relief to real estate investors looking to get projects approved faster. The Protect Ontario by Building Faster and Smarter Act, 2025 includes several game-changing updates that, if passed, would streamline the building permit process and help you avoid costly delays.

Here’s what’s in it for you:

1. No More Extra Red Tape from Municipalities

Cities won’t be allowed to add custom construction rules on top of the Ontario Building Code. No more redoing designs just to meet local preferences.

2. Fewer Surprise Studies or Reports Required

Municipalities can only request what’s listed in their official plans. You’ll get consistent requirements and fewer holdups.

3. Minor Zoning Setbacks May No Longer Need Variance Applications

If your project is within ~10% of zoning setback rules, you may not need to file a minor variance. That means avoiding months of delay and thousands in fees.

4. Faster Use of Innovative Materials

Materials approved by the federal government won’t need a second provincial approval, making construction more efficient.

5. Lower Costs for Canadian-Built Products

Canadian manufacturers will have their application fees waived, helping you access more affordable building materials.

6. More Options for Rural or Underserviced Projects

Modular and communal water/sewer servicing systems will be easier to approve — a huge help for infill or countryside projects.

7. Permit Systems Moving Towards Digital

Ontario plans to modernize its systems, so expect faster, AI-supported reviews and greater transparency soon.

8. Easier Approvals for 4-Storey Townhouses

Changes are being considered to simplify the process for stacked townhomes, helping you add density on tighter lots.

9. Development Charges Could Be Deferred Until Occupancy

You may no longer need to pay Development Charges (DCs) upfront. Deferring until occupancy helps preserve cash flow during construction.

Again, these changes are proposed and not yet law. But if passed, they could reduce friction, simplify approvals, and cut costs for REIs across Ontario.

If you’re unsure how this could impact your upcoming conversion, new build, or planning application, feel free to reach out. We’re staying ahead of the changes to keep your projects moving.

Let’s build smarter together.

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