Banking giant's housing policy lead says the government's ambition is clear, but execution, detail, and time remain the real tests
Ottawa's housing agenda has produced a string of announcements over the past year, from a new federal housing corporation to a joint multibillion-dollar infrastructure fund with Ontario.
But analysts and brokers on the ground say the real test of that ambition will play out not in press releases, but in the slow grind of legislation, municipal approvals, and the building sites where Canada's supply shortfall is most acutely felt.
Stephanie Shewchuk, housing policy lead at RBC Thought Leadership, has spent the past several months parsing each initiative. Her read: the federal government has shown a genuine appetite for structural change, but the risk of a "wait-and-see" mentality hardening among buyers and developers is real, particularly where details remain unresolved.
"When people are making decisions about probably maybe the biggest purchase they will ever make, they want the details to be clear," Shewchuk said.
"Otherwise, they start to develop more of a wait-and-see approach, and you lose some of the momentum."
That tension between ambition and execution sits at the centre of a policy landscape that has shifted dramatically since prime minister Mark Carney's Liberals won re-election on a housing affordability mandate.
A new agency with big ambitions
Among the government's most visible moves was the establishment of Build Canada Homes (BCH) in September 2025.
The new Crown corporation is focused on expanding deeply affordable and non-market housing options, with an early portfolio that includes a $1.5-billion Rental Protection Fund and a commitment of $1 billion toward supportive and transitional housing for those facing homelessness.
It has also announced the Direct Build initiative, which will fast-track 4,000 homes across six Canada Lands Company sites. Yet even as BCH signals federal intent, its relationship with the long-established Canada Mortgage and Housing Corporation (CMHC) raises questions about mandate overlap that will take time to resolve.
Shewchuk says the interplay between the two bodies will be worth watching closely as BCH evolves.
"Even though Build Canada Homes is set up to focus on non-market housing, there's still a key role for the private sector as far as building and financing, two areas where you're going to need private partners," she said.
The HST question
Of all the measures announced to date, the initiative generating the most immediate market activity is arguably the Ontario-federal harmonized sales tax (HST) New Housing Rebate, which took effect on April 1, 2026.
Under the programme, purchasers of qualifying new homes in Ontario can receive a rebate of up to $130,000 on the full 13% HST paid — covering both provincial and federal portions — on homes valued up to $1 million, with tapered relief extending to $1.85 million.
The measure is currently scheduled to run until March 31, 2027, with eligible construction timelines reaching as far as 2031.
Broker reaction has been broadly positive. Micky Khaneka of MKG Mortgages told Canadian Mortgage Professional the rebate sends a signal that the government is listening.
"I definitely think it's a signal that the government's listening and they're really trying to reprioritize this because taking that out helps," he said.
Ontario’s budget delivers housing tax relief—but challenges remain.
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 31, 2026
Explore how tax relief could support buyers and builders while highlighting the broader supply crunch—read more and share your perspective.https://t.co/6PbRD2q62W
Meanwhile, Leah Zlatkin, licensed mortgage broker and LowestRates.ca expert, says the rebate has drawn fresh attention to pre-construction properties, including condominiums, semis, and townhouses.
However, a complication lingers. As of early May 2026, neither the federal nor Ontario enabling legislation had received royal assent, leaving buyers, brokers, and developers navigating a legislative grey zone. Shewchuk was candid about the uncertainty.
"Effectively, you have to apply for a rebate at this stage, but once the legislation is passed, developers can put it on the sales agreement," she said.
"There's probably not a lot of risk around this — the legislation stands to go through — but it will take a bit of time. That still means, however, that this uncertainty is a factor in decision-making."
The supply funding puzzle
In March, the federal government introduced Bill C-26, earmarking $1.7 billion in direct payments to provinces and territories with the stated goal of reducing development charges and bolstering existing programming.
Shewchuk described the bill's potential as meaningful but noted it remains light on operational specifics at this stage.
"At present, there does not seem to be that much specific detail or current direction on this, but it was indicated that funds may be used for reducing development charges and fees and to make investments in programming already in place," she said.
"It's great that there is this allocation so that there can be flexible approaches to the different needs and ways of working across different provinces and territories. Housing markets and conditions across the country are quite varied."
That regional nuance is something Ottawa is also attempting to address through the Canada-Ontario Partnership to Build, announced on March 30. The agreement commits a combined $8.8 billion over 10 years between the two governments — the first arrangement under the Building Communities Strong Fund — to support housing-enabling infrastructure in Ontario, prioritise lower development charges, and require the use of domestic suppliers under Canada's Buy Canadian Policy.
Development charges have long been identified as a meaningful cost driver in high-growth markets such as the Greater Toronto Area. University of Ottawa economist Mike Moffatt has described government levies stacking up on new housing as "taxing new homes like cigarettes," arguing they punish first-time buyers and renters while inflating construction loans.
The road ahead
Shewchuk cautions that the full picture of the federal government's housing strategy is still forming, and that major policy shifts of this scale take years to show results.
She expects more of that vision to come into focus over the remainder of 2026 as deliberations around the next iteration of the National Housing Strategy advance.
"We're seeing an attempt to address different types of housing across the continuum, from homelessness to home ownership," Shewchuk said.
"We have yet to see the full strategic vision of what that looks like, and I think that will come through over the course of the rest of the year."
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