Behind every stalled project, cancelled development, or skyrocketing pre-construction price, there’s a trail of delays, red tape, and mounting costs that ultimately land on the shoulders of Canadian homebuyers.

At Lendworth, we watch these shifts closely because they shape borrowing power, home equity growth, and long-term financial stability for every Ontario homeowner we serve. Here’s what’s really going on behind the scenes — and why speed, alternative lending, and equity-based mortgage options matter more than ever.

1. The Hidden Cost of Slow Approvals: Why “Time” Is Canada’s Most Expensive Construction Material

Before a single shovel hits the ground, developers face one massive obstacle: waiting. Across Canada, municipal approvals take an average of almost a year — with some cities stretching that to two or three years before construction can even begin.

Every month of delay increases:

• Carrying costs
• Construction financing fees
• Exposure to rising material and labour prices
• Developer risk (which is always priced into the final home price)

Cities like Saskatoon approve projects in roughly 60 days, while Toronto and Hamilton can take more than 25–30 months. That difference alone can add tens of thousands to the final sale price of a unit.

For borrowers: delay-driven inflation trickles directly into mortgage payments — not because homes are getting larger or better, but because the system is slow.

2. Development Charges: The Quiet Tax Making New Homes Shockingly Expensive

Municipal fees on new homes vary dramatically across the country — and they’re rising fast.

Average fee per single-family home: $82,600

In Toronto: nearly $200,000

In smaller cities like Moncton: under $10,000

High-rise units face fees ranging from $2,000 to $134,000 depending on the city.

Why the massive spread? Because most municipalities now operate on a “growth pays for growth” model. Instead of spreading infrastructure costs across the property-tax base (as cities did in the post-war era), today’s buyers are expected to pay upfront — through their mortgage.

For borrowers: this inflates prices while keeping property taxes artificially low. Lower taxes → higher values → higher mortgages. It’s a cycle that feeds itself.

3. The Regulatory “Snowball Effect”: When Good Intentions Create Expensive Outcomes

Canada does not have one big regulation problem — it has hundreds of small ones. Individually, each study or requirement makes sense. Together, they form a maze that slows projects for years.

Some cities now require 30+ technical studies before even accepting a development application.

Examples include:

• Traffic + parking
• Hydrogeology
• Environmental impact
• Shadow studies
• Stormwater management
• Economic analysis
• Accessibility reviews

Every study takes time, costs money, and requires municipal peer review. Multiply these delays across thousands of projects, and the result is soaring prices, fewer completed homes, and developers backing out entirely.

4. The New Home Sales Collapse: A Warning Sign for Canada’s Entire Economy

New home sales in major urban regions — especially the GTA — have fallen by up to 90% since 2021.

Why this matters:

• Future housing supply is drying up
• Tens of thousands of skilled construction jobs are at risk
• Projects are stalling or cancelling outright
• Developers cannot finance new phases
• Rental and resale prices rise as supply shrinks

Resale markets are still moving (roughly 500,000 transactions per year nationwide), so demand hasn’t disappeared — but new construction has.

This is the real threat to long-term affordability.

5. The Office-to-Residential Goldmine Canada Won’t Unlock

Canada has more than 100 million square feet of obsolete or vacant office space — much of it in prime downtown areas.

Converting these buildings into residential units could:

• Add thousands of new homes
• Revitalize struggling business districts
• Reduce construction timelines dramatically
• Lower carbon footprints by reusing existing structures

But municipal resistance, outdated zoning rules, and fears about “losing employment land” have stalled many viable conversions.

For borrowers: every stalled conversion is a missed opportunity for more supply — and more supply means lower prices.

6. Migration Trends Show Canadians Are Still Moving — Just Not Where You Think

Despite escalating costs, Canadians are still buying and selling homes. Resale volumes remain stable nationwide. What’s changing is where Canadians are moving:

• Ontario → Alberta
• BC → Prairie provinces
• Toronto/GTA → smaller towns within 2 hours’ drive

But here’s the catch: moving is only possible if jobs follow, and Canada’s slow new-construction cycle is hitting job creation too.

The decline in new housing starts is happening across nearly every major city, showing this is a structural, national issue — not just a Toronto problem.

7. Buyers Are Paying Costs They Can’t See — And They’re All Built Into the Mortgage

Much of what a buyer pays for — especially in new construction — is not itemized:

• Development charges
• Density bonuses
• Parkland dedication fees
• Planning and application fees
• Site servicing costs
• Infrastructure levies

Unlike a closing cost, these fees get baked into the home price and financed over 25–30 years.

Transparency is almost nonexistent.

Buyers deserve to know how much of their mortgage payment is going toward municipal charges vs. the physical home they’re buying.

8. Canada’s Housing Data Problem: We Can’t Fix What We Can’t Measure

Canada lacks reliable, standardized, publicly accessible housing data.

Missing pieces include:

• True cost breakdown of new construction
• Size + characteristics of homes over time
• How much tax and fees add to final home prices
• A national inventory of units by type, size, and stage of construction

Without good data, policies become guesswork — and guesswork exacerbates affordability issues.

So What’s the Way Forward?

Canada’s housing crisis isn’t because of one issue — it’s the impact of delays, fees, financing models, outdated zoning, and regulatory overload all hitting at once.

But there are solutions:

• Faster, accountable municipal approvals
• Transparent breakdowns of fees baked into home prices
• Updated zoning and simpler pathways for office-to-residential conversions
• A return to infrastructure financing that doesn’t punish new homebuyers
• National data standards
• Incentives for faster construction and lower soft costs

Canada doesn’t lack demand. It lacks a system designed to deliver homes quickly and efficiently.

What This Means for Borrowers Today — And Where Lendworth Helps

While governments and cities debate long-term fixes, Ontario homeowners still need fast, flexible access to capital today.

That’s where Lendworth steps in.

We provide:

• Fast approvals for home equity loans
• Same-day decisions for second mortgages
• Quick access to HELOC-style financing
• Equity-based lending (no traditional income or credit barriers)
• Funding across Ontario

In a market where delays and bureaucracy slow everything down, your equity shouldn’t be trapped. Whether you’re renovating, consolidating debt, investing, or bridging a financing gap, Lendworth helps you move quickly — without the red tape.

📞 Call us today at 905-597-1225

🌐 Apply at www.lendworth.ca