Ontario Passes Bill 17 – What It Means for Custom Home Building in 2025

Ontario’s new housing legislation, Bill 17: Protect Ontario by Building Faster and Smarter Act, is officially in effect—and it's reshaping how custom homes, laneway suites, and urban infill projects are being designed, approved, and built across the province.

This landmark legislation introduces key reforms that reduce delays, lower upfront costs, and cut through red tape for homeowners, developers, and builders.

Key Changes in Bill 17 That Affect Custom Home Projects

Bill 17 makes major amendments to the Building Code Act, Planning Act, and Development Charges Act, including:

• Development Charges (DCs) deferred to occupancy for residential projects—reducing upfront expenses.

• Pre-approved designs for laneway and garden suites available free from the City of Toronto.

• Simplified permit approvals: Fewer required studies (e.g., sun/shade, wind, lighting).

• Licensed engineers can sign off on more components, speeding up building permit processing.

• Municipalities must align with Ontario’s Building Code, preventing added local design burdens.

Custom Homes and Infill Builds Expected to Surge in Toronto

Thanks to these changes, custom home construction in Toronto and the GTA is projected to increase over the next 12–24 months, especially in areas with older housing stock like North York, East York, Scarborough, and Mississauga.

Builders are seeing growing demand for:

• Teardown-and-rebuild custom homes

• Laneway suites and garden homes

• Multiplex conversions and infill builds

“Bill 17 makes it easier and more cost-effective for homeowners to invest in custom homes and multi-unit infill housing,” explains Toronto-based architect Reza Farhani. “It’s a smart step toward increasing density without compromising design.”

Why This Matters for Homeowners

For homeowners planning a custom build or major renovation, Bill 17 opens the door to faster timelines, reduced permit costs, and simpler approvals—especially on tight urban lots or secondary dwellings.

How This Affects the Building Industry in Ontario

While some developers and municipalities remain cautious, many in the industry say the changes are overdue.

In the past, custom home projects were often delayed by overlapping reviews, inconsistent municipal policies, and high pre-construction fees. Under Bill 17:

• Builders have more clarity and control over timelines.

• Architects can rely more on their licensed consultants instead of city backlogs.

• Investors and homeowners gain confidence in budgeting for new builds.

According to BILD and Urbanation, custom and small-scale builds will likely drive new starts in 2025–2026, especially as traditional home sales across the GTA remain low.