If you’re new to real estate investing, you’ve probably come across the term “cap rate.” Don’t let it scare you off—it’s actually one of the simplest tools to help you figure out whether a rental property is worth buying.
This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
If you’re a real estate investor in Toronto, listen up — the rules are changing again. Ontario just introduced a new housing law called the Protect Ontario by Building Faster and Smarter Act, 2025. The goal? Build faster, cut red tape, and stop cities from holding things back.
This is good news for investors.
The province is stepping in to make building easier and cheaper. Local delays and roadblocks? Ontario’s trying to shut those down by pulling more planning power to the provincial level. Cities, including Toronto, are being told to follow suit — and in many ways, Toronto’s already ahead.
Let’s break down what this new law means for you.
The Big Picture: Faster Builds, Lower Costs
The core goal of this act is simple: build more housing, faster. That means reducing bureaucracy, forcing municipalities to comply, and making it harder for them to delay or block development. For investors, this shifts the balance of power in your favour.
✅ Key Win: Deferred Development Charges
You no longer have to pay development charges (DCs) upfront when pulling a building permit. Instead, you can defer those payments until the unit is occupied.
That means better cash flow and lower carrying costs.
And here’s the kicker — cities can’t charge interest on the deferred payments anymore.
This change alone can save you thousands on a project.
Toronto Helped Push Through DC Timelines Too
There’s another important shift. In the past, if a city wanted to reduce or waive development charges, they had to do a background study — a process that could take six months or more and cost money.
Thanks to input from Toronto, that step is now gone. Cities can now drop DCs without doing studies or hosting public consultations, which means faster implementation and fewer delays.
Municipalities Must Follow the Province
Another big change: cities can’t just make up their own rules anymore.
The province recently updated the Planning Act to make it easier to build additional dwelling units (ADUs). For example, they’ve:
Removed angular plane requirements
Reduced setbacks (as low as 4m for backyard or laneway suites)
But Toronto is trying to hold onto older, more restrictive interpretations — like saying these changes only apply to one-storey backyard units or if the main house has no more than two units. That doesn’t line up with the provincial changes.
While these local interpretations may still cause friction or slow things down, the new provincial law means Toronto can’t legally enforce conflicting policies. It might take time, but the direction is clear — and it favours builders.
Bottom Line: It’s Getting Easier to Build in Toronto
Ontario — and Toronto — are making real changes to encourage more housing. There’s still some resistance at the city level, but overall, we’re moving in the right direction. The province is tightening the rules to make sure cities get in line.
So if you’re planning to build or add units in Toronto, now’s the time to act. If you follow where the city and province are heading, you’ll save money and time — and that directly boosts your bottom line.
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
Reena S.April 23, 2025.I had a 30-minute consultation call with Samantha, and I’m so glad I reached out. We’re looking to purchase a property in Toronto with the goal of generating income and long-term appreciation, and Samantha really understood the financial and strategic sides of that equation. She’s incredibly honest, knowledgeable, and clearly experienced when it comes to working with investors. I walked away with valuable insights that will definitely shape our next steps. Highly recommend!L F-HApril 21, 2025.Phil helped me with both a sale and a purchase and he was great with both! I was particularly impressed with his knowledge of the market, his good rapport with other agents (as well as potential buyers/sellers), and with his friendliness and accessibility to me during the whole process.Carlos GoulartApril 21, 2025.Dave was really helpful. He took his time to show me the property wich now my family and I call home. Really attentive during the showing and also with all the requests for be able to rent the unit. Will recommend Dave anytime!! 👌Effie BruntonApril 21, 2025.Working with Laryssa from Elevate was an incredible experience from start to finish. As first-time investment property buyers, we had a lot of questions—and Laryssa was there every step of the way with answers, guidance, and genuine support. She really listened to our needs and respected our budget, while helping us stay focused on our goals. Laryssa’s knowledge of the area was spot-on, and because she’s also an investor herself, she gave us real, practical advice that made a huge difference. She helped us understand what to look for in a solid income property, walked us through renovation budgets, and shared so much of her own experience to make sure we were making smart decisions. One thing we especially appreciated was that she was always available to answer any questions we had—no matter how silly we thought they were. She never made us feel anything but supported and informed, which gave us a lot of confidence as we navigated this new process. We’re so grateful to have had her in our corner and can confidently say we wouldn’t have found this property without her. If you’re looking for someone who truly cares, is incredibly knowledgeable, and brings a personal touch to the process, Laryssa and the Elevate team are who you want by your side. Highly recommend!DGustavo SanzApril 16, 2025.I appreciate the pretty good attention and all the support that Karina and Kate offered to me. thank you so much.Shing LeungApril 7, 2025.Spiro from Elevate helped me purchase my first rental property and the experience has been seamless and highly educational. He and the rest of the Elevate team do a fantastic job of demystifying the whole process and making it accessible to new investors. As an agent, Spiro is very professional and generous--never hesitating in sharing his time, real estate know-how, and his valuable network of contacts. The fact that he and the whole Elevate team are investors add a ton of credibility to their offerings. In a space that's normally driven by sensationalism and hype, Spiro's measured and practical approach is a breath of fresh air.
