Haliburton County-based builders, Brown + Co, said a decision by the provincial government to waive the HST for any new home purchased, to become a principal residence, is “a very exciting announcement.
“We’re surprised, and delighted, such extreme measures are going to be taken to boost new home sales,” Benton Brown told The Highlander in a recent interview.
Brown+Co’s Stothart Creek has been building and selling Tarion Warranty homes in Haliburton for more than a decade and Brown said the news has the potential to save people $130,000 on a $1 million home.
On May 5, the province officially introduced the HST Relief Implementation Act to support 13 per cent relief on eligible new homes. The program is in partnership with the federal government.
The province said the initiative would provide buyers of most new homes in Ontario with up to $130,000 in relief and could stimulate an additional 8,000 housing starts next year, support up to 21,000 jobs, and boost Ontario’s GDP growth by $2.7 billion.
“We’re already seeing the positive impact of our commitment to remove the HST from most new homes, with more shovels in the ground on new homes across Ontario,” minister of finance, Peter Bethlenfalvy, said. He added, “our government will continue fighting to lower costs for homebuyers, keep the dream of homeownership alive in Ontario, and keep workers in our construction sector on the job.”
Buyers of eligible new homes valued at $1 million or less would receive the full 13 per cent relief, to a maximum of $130,000. Buyers of eligible homes at $1 million to $1.5 million would see relief of $130,000. For homes valued above $1.5 million, the HST relief would decline gradually to a maximum of $24,000 for homes of $1.85 million or more.
While applications for HST relief are not open at this time, those who meet the relevant eligibility criteria can apply once it launches. For example, purchasers of an eligible home acquired on, or after, April 1, 2026, and on, or before, March 31, 2027, would be able to apply at a later date to receive the HST relief, even though the application process has not yet open.
Impact on real estate
The proposed legislation also includes provisions that would enable buyers to assign the top-up to builders so that sellers can take the full HST relief amount off the price of a new home up front. The government continues to work with the federal government to implement the HST relief through federal regulatory changes and has asked the feds to administer the full HST relief program through the Canada Revenue Agency.
The measures build on existing provincial housing tax supports to help increase the supply of affordable homes, support housing development and foster a robust housing industry across Ontario. This includes removing the full eight per cent provincial portion of the HST on qualifying purpose-built rental housing. The province is also providing historic housing-enabling infrastructure funding through the $4 billion Municipal Housing Infrastructure Program and the $1.2 billion Building Faster Fund, which rewards eligible municipalities that make real progress in getting shovels in the ground to build new homes.
Brown said his company has fared “quite well” through a difficult post-COVID housing market, plagued by tariffs and high building prices. He estimated their costs are up 35 per cent. He said it’s left some contractors and sub-contractors looking for work, while some builders have paused construction. “It’s really tough out there.”
He said last Tuesday’s announcement is “a targeted shot in the arm for new builds, and hopefully has a good impact on the economy. I think the cost is the catalyst of why this announcement has come out.”
Brown said it will be interesting to see what impact the new rebate has on the Highlands’ real estate market, since a lot of people might be interested in saving HST on a new home but have to sell an existing one in a saturated housing market. He added people looking to buy will be more attracted to a new home with the potential of saving on HST versus an existing home that is not included.
“I don’t think it’s a stretch to say it’s a once-in-a lifetime opportunity in terms of potentially saving a considerable amount of money and getting a head start on the equity in your home.”
