In accordance with Bill 108, the More Homes, More Choices Act, 2019 and Bill 23, the More Homes Built Faster Act, 2022, rental housing development and institutional development, as defined by legislation, shall pay development charges in six annual instalments beginning on the earlier of the date the building is first occupied or the date of issuance of a permit authorizing occupancy of the building, and continuing on each of the following five anniversaries of that date.
Upon occupancy, the City will issue a statement with the first instalment amount that is due and payable within 30 days. For the remaining instalments, a new payment statement will be issued annually on the anniversary of the occupancy date.
Deferral interest is charged from the time the development charge would usually have been payable (building permit issuance) until the final payment is received. The applicable interest is the Canadian Bank Prime Rate plus three per cent or, if a letter of credit is provided to secure the amount of the development charge, the City’s Cost of Capital plus 0.5 per cent as set out in the interest section below.
Instalments that are payable after the More Homes Built Faster Act, 2022 came into force are subject to the maximum interest rate that can be charged under the Act. For these applications, interest will be capped so as not exceed the Canadian Bank Prime Rate plus one per cent fixed from the date of permit issuance.
Applicants may, upon making a written request to the City prior to building permit issuance, choose to forego the deferral of development charges and pay the full development charge at building permit issuance upon executing a payment agreement with the City.
For instalment payment arrangements, payments may be submitted by:
| Mailed Payment | In-Person Payments |
|---|---|
| Submit cheque payments by mail:
City of Toronto |
In-person payments to be accepted at:
City of Toronto |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 4.47% | 9.45% |
| Q2 | 4.40% | 8.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 4.50% | 10.20% |
| Q2 | 4.88% | 10.20% |
| Q3 | 4.71% | 10.20% |
| Q4 | 4.29% | 9.95% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 4.35% | 8.45% |
| Q2 | 4.24% | 9.45% |
| Q3 | 4.88% | 9.70% |
| Q4 | 5.14% | 10.20% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 2.77% | 5.45% |
| Q2 | 3.62% | 5.45% |
| Q3 | 5.02% | 6.20% |
| Q4 | 4.70% | 7.70% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 2.01% | 5.45% |
| Q2 | 2.81% | 5.45% |
| Q3 | 2.69% | 5.45% |
| Q4 | 2.51% | 5.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q1 | 2.49% | 8.95% |
| Q2 | 2.25% | 8.95% |
| Q3 | 1.61% | 7.45% |
| Q4 | 1.52% | 7.45% |
If an Agreement has been signed with the City to provide a Letter of Credit, the City must receive the original Letter of Credit 30 days prior to occupancy.
If a Letter of Credit is provided, interest will be applied daily at the City’s Cost of Capital plus 0.5 per cent. Cost of Capital Interest rates are updated quarterly.
Submit the Letter of Credit by mail to:
City of Toronto
Revenue Services
Attn: Planning and Policy Development
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7
If any part of the development charge remains past due and unpaid, the overdue amount, including any interest, will be added to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax bill payment collection processes.
The City takes action to collect overdue charges. The collection protocol for unpaid property taxes is followed in accordance with Chapter 767 of the Toronto Municipal Code. Penalty and interest rates are set by City by-laws, pursuant to the City of Toronto Act, 2006.
If there is a Letter of Credit in place, any part of the development charge that remains past due and unpaid, including interest, will be drawn from the Letter of Credit. Any overdue amount not covered by the Letter of Credit will be transferred to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax collection processes.