All Ontario homebuyers will qualify for an HST rebate on new homes for one year, Premier Doug Ford announced on Wednesday.
Ottawa and Queen’s Park are delivering a $2.2 billion boost to Ontario’s struggling home construction sector by offering a one-year HST break for purchasers of new homes.
Ford said the provincial and federal governments intend to temporarily broaden the HST rebate for newly built homes, giving all buyers access to a rebate of up to $130,000.
Previously, the HST rebate on new homes was limited to first-time buyers through the federal GST/HST First-Time Home Buyers Rebate.
For a one-year window, however, the province is proposing to expand eligibility to all buyers across Ontario.
Under the plan, homes priced up to $1.5 million would qualify for the full rebate of up to $130,000.
A partial rebate would apply to homes valued between $1.5 million and $1.8 million, while properties above $1.85 million would remain eligible for $24,000 in HST relief under the existing program.
The province would fund eight per cent, the provincial share of the HST, while Ottawa would cover the five per cent federal portion. The province noted the temporary expansion still depends on the “passage of federal legislation.”
The proposed measures would run from April 1, 2026, to March 31, 2027, with all qualifying homes required to be used as a primary residence or rental property.
Buyers would qualify if their agreement with the builder is signed between April 1, 2026, and March 31, 2027, and construction starts on or before Dec. 31, 2028, and is substantially completed by December 31, 2031.
Eligibility would also apply where construction began before March 31, 2026, provided the agreement is signed within the same April 1, 2026 to March 31, 2027 window, and completion occurs by December 31, 2029.
Officials estimate the program will cost the province $1.4 billion.
According to provincial projections, the expanded rebate could lead to an additional 8,000 housing starts, support as many as 21,000 jobs, and boost Ontario’s GDP growth by $2.7 billion.
Ford said the goal is to reignite the construction industry, which has seen projects delayed due to rising building costs and softer demand.
In Toronto, new condo developments have faced challenges launching, with sales across the GTHA dropping to levels not seen in decades.
“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” said Premier Doug Ford. “Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.”
“My message to everyone from the building sector here today is very simple: Start building,” he said.
Ford also urged municipalities to scrap development charges, which he said 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.
Further details on the expanded HST rebates for all eligible buyers will be made available following the release of the 2026 Budget.
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