Ontario plans to temporarily expand the HST rebate on newly built homes to all eligible buyers for one year, replacing a first time buyer only benefit with a broader tax break worth as much as $130,000 per purchase and backed by an estimated $1.4 billion provincial cost.
Premier Doug Ford announced the plan on Wednesday, with the province and federal government set to split the HST relief. Ontario would cover the 8% provincial share, while Ottawa would cover the 5% federal share, subject to the passage of federal legislation.
The province said the combined measure would deliver nearly $2.2 billion in joint tax relief for housing.
Sponsored · Cambria Gold Mines
Eligible homes must be used either as a primary residence or as a residential rental property, widening access beyond owner-occupiers and first-time entrants. For eligibility, buyers must sign a purchase agreement with a builder between April 1, 2026, and March 31, 2027. In one qualifying path, construction must begin on or before December 31, 2028, with substantial completion on or before December 31, 2031. In a second path, purchases can still qualify if construction began before March 31, 2026, the agreement is signed during the same one-year window, and substantial completion occurs on or before December 31, 2029.
The government says homes valued at up to $1.0 million would receive $130,000 in relief, equal to the full 13% HST. It also says that same $130,000 rebate would apply to homes priced between $1.0 million and $1.5 million, after which the rebate would decline for homes between $1.5 million and $1.8 million. Homes above $1.85 million would continue to qualify for $24,000 in relief under pre-existing rebate rules.
The earlier federal GST/HST First-Time Home Buyers Rebate limited access by buyer type. The new proposal instead targets market activity across the new-home spectrum, including investors purchasing residential rental units, so long as the end use meets the province’s occupancy conditions.
Officials estimate the temporary expansion could stimulate an additional 8,000 housing starts, support up to 21,000 jobs, and lift real GDP growth by $2.7 billion.
Ontario said it will include the measure in the budget to be tabled Thursday, with more details expected then, though the federal share remains contingent on Ottawa passing the required legislation.
Information for this story was found via CTV News and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
