Broadening the HST Rebate: A Step Toward Housing Affordability

With the announcement that both the federal and Ontario governments are extending the 13% sales tax break on new homes priced at $1 million or less to all buyers, it is a significant and timely move for the housing market.

Broadening this incentive beyond first-time buyers has the potential to improve affordability, boost buyer confidence, and re‑energize a residential construction sector that has been under considerable pressure. With new home sales and housing starts slowing amid rising construction costs, regulatory hurdles, and a heavy tax burden, measures like this can help unlock pent‑up demand, support job retention across the construction supply chain, and encourage projects to move forward.

While longer-term solutions are still needed—such as faster approvals and changes to development charges—this type of targeted tax relief is widely seen as an important step toward stabilizing the market and improving housing supply at a critical moment.