Photo by B. Shakyaver
The Ontario government has introduced new legislation aimed at lowering the cost of buying a new home.
The proposed HST Relief Implementation Act would remove the 13 per cent HST on most new homes in the province. The plan is being developed in partnership with the federal government and could provide buyers with up to $130,000 in savings.
Peter Bethlenfalvy says the move is meant to make housing more affordable and support jobs in the construction sector. He says the province is already seeing more homebuilding activity as a result of the plan.
Under the proposal, buyers purchasing a new home valued at $1 million or less would receive the full HST relief, up to $130,000. Homes priced between $1 million and $1.5 million would still qualify for the maximum rebate, while the amount would gradually decrease for homes valued above that range.
The program combines provincial and federal support. The federal government will help fund part of the rebate, while the province will provide additional savings through existing housing rebates.
Officials say the changes could lead to about 8,000 more housing starts next year, support up to 21,000 jobs, and boost Ontario’s economy.
Applications for the rebate are not open yet, but buyers who purchase eligible homes between April 1, 2026, and March 31, 2027, will be able to apply once the program launches.
The province says more details, including how to apply, will be shared in the coming months as work continues with the federal government to roll out the program.
