Province eases costs for homebuilders to unlock more BC homes

July 2, 2025

Parteek Singh Mahal

SURREY, B.C. – British Columbia is pushing for a significant boost in affordable housing, as the provincial government rolls out new measures designed to slash upfront costs and accelerate construction timelines for homebuilders. This strategic move aims to alleviate the financial pressures on developers, ensuring that more vital housing projects can quickly get off the ground amid the challenges of high construction costs and rising interest rates.

“We are committed to finding innovative and cost-effective solutions to build housing, so everyone has a fair chance to live in communities where they work and belong,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “These changes are about supporting housing development and easing the financial burden on builders and developers so they can get shovels in the ground faster to help unlock more homes for people in B.C.”

The core of these changes involves offering more flexible and extended payment timelines for builders, which will improve the viability of housing projects and allow developers to invest in new ventures sooner. Lower carrying costs are also expected to unlock more housing developments that require additional capital.

A key amendment will be to the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation, expanding the province-wide use of on-demand surety bonds. These bonds are financial guarantees preferred by homebuilders over irrevocable letters of credit, as they provide assurances without tying up a developer’s credit. Currently, these bonds are used in just 40 municipalities across Canada, including Burnaby, Surrey, Vancouver, and Mission.

Under the new regulations, qualified developers in communities with development cost charges, amenity cost charges, or school-site acquisition charges will benefit. Homebuilders will now have four years, instead of two, to pay these charges. They can pay 25% upon permit approval, with the remaining 75% due at occupancy or within four years, whichever comes first.

These collaborative efforts between the Province, B.C.’s development and homebuilding industry associations, and local governments are expected to come into effect on January 1, 2026. This timeline will allow local governments ample time for necessary system upgrades, staff training, and planning.