All Ontario buyers will be eligible for HST rebate on new homes for one year, Ford says

Premier Doug Ford says the province and federal government plan to temporarily expand the HST rebate for new homes in the province, allowing all buyers a rebate of up to $130,000.

The premier made the announcement at a news conference in Mississauga on Wednesday morning.

The HST rebate on new homes was previously only available to first-time homebuyers under the federal GST/HST First-Time Home Buyers Rebate.

But for a one-year period, the province is proposing that the offer be extended to all buyers in the province.

According to the Ford government, homes valued at up to $1.5 million would be eligible for a maximum of $130,000 in relief.

A reduced rebate would be available for new homes valued between $1.5 million and $1.8 million and new homes above $1.85 million would qualify for $24,000 in HST relief under the pre-existing rebate.

The province will cover eight per cent, the provincial portion of the HST, while Ottawa will cover the federal portion of five per cent. The temporary expansion of the program is subject to the “passage of federal legislation,” the province noted.

The proposed new rules would be in effect from April 1, 2026 to March 31, 2027 and all new homes must be used as a primary residence or as a residential rental property.

Homeowners would be eligible if the purchase agreement with the builder was signed between April 1, 2026 and March 31, 2027, construction of the home begins on or before Dec. 31, 2028, and construction is substantially completed on or before December 31, 2031.

A purchase would also be eligible if construction began before March 31, 2026, the purchase agreement with the builder was signed between April 1, 2026 and March 31, 2027, and construction is substantially completed on or before December 31, 2029.

Government officials estimate the program will cost the province $1.4 billion.

The expansion of the HST rebate could stimulate an additional 8,000 housing starts and support up to 21,000 jobs, a boost to real GDP growth by $2.7 billion, according to estimates provided by the province.

Ford said the aim of the program expansion is to kickstart the construction sector, which has seen residential projects stall amid higher building costs and weaker demand.

In Toronto, new condo projects have struggled to get off the ground and the number of new condo sales in the GTHA have plummeted to levels not seen in decades.

The premier said he hopes the program will “bring the dream of home ownership in reach for thousands of Ontario families.”

“My message to everyone from the building sector here today is very simple. Start building,” he said.

‘Unlocking affordability’

Ford also encouraged more municipalities to eliminate development charges that have added “hundreds of thousands of dollars to the cost of new homes.”

“I also have a message for Ontario municipal leaders… we are doing our part by cutting taxes and fees and investing in housing-enabling infrastructure, but we need you to step up too,” he said.

In a statement released Wednesday, Dave Wilkes, the president and CEO the Building Industry and Land Development Association (BILD), said the move will “significantly reduce upfront homeownership costs.”

“At a time where we are facing huge economic uncertainty and a slowing housing industry, this is a major step toward unlocking affordability in Ontario’s housing market and supporting the broader economy, Wilkes said.

”This is great news for both new home purchasers and the 100,000s of workers in our industry."

With files from CP24’s Joshua Freeman