Ontario and Federal Governments Expand HST Rebate to All New Home Buyers
Event summary
- Ontario and Federal Governments eliminate HST for all buyers of new homes up to $1.5M, effective April 1, 2026.
- Rebate capped at $130,000, with reduced rebates for homes above $1.5M.
- Policy aims to lower new housing costs and boost supply, particularly for missing middle housing.
- TRREB advocated for this reform through its Housing Advancement Coalition.
The big picture
This policy shift addresses rising development costs that have contributed to housing unaffordability in Ontario. By removing a significant tax burden, the governments aim to make new housing more accessible while encouraging developers to bring more projects to market. The move reflects broader efforts to ease pressure on a strained housing market amid economic uncertainty and high borrowing costs.
What we're watching
- Supply Response
- Whether the HST elimination will accelerate new housing project approvals and construction starts.
- Market Impact
- How the policy change affects home prices and buyer demand in the Greater Toronto Area.
- Policy Continuity
- The likelihood of this temporary measure (until March 31, 2027) becoming permanent.
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