What to know

The province is removing the full 13 per cent HST on new homes from April 1 to March 31, with rebates of up to $130,000 for homes priced under $1.5 million.

The measure aims to improve affordability and encourage more buyers to enter the market.

With home prices and sales down in Toronto, one expert says the tax break could push hesitant buyers off the sidelines and spark renewed demand.

The policy is part of a broader plan to boost housing supply and infrastructure, though industry experts say more details are still needed on implementation.

As part of the Ontario budget for this year, the province is eliminating Harmonized Sales Tax (HST) for new homes, and one expert says this is a great opportunity for buyers to jump into the market before prices go up. 

The province is removing the full 13 per cent HST on all sales of new homes starting on April 1 and ending next March 31. The initiative was first announced by Premier Doug Ford’s government days before his 2026 budget was unveiled last week, and cost-shared with the federal government. 

Under the initiative, buyers of all new homes up to $1.5 million will be eligible for a tax rebate of up to $130,000. This rebate will be decreased proportionally for properties valued above $1.5 million, reaching a maximum of $24,000 for those valued at or above $1.85 million.  

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To help homebuyers understand how this initiative will support their real-estate investments, Now Toronto spoke with Brent Strachan, Chief Operating Officer of real estate development company Minto Group. 

Will this help make homes more affordable? 

While announcing the measure last week, Ford said the measure aims to make homes more affordable for Ontarians, from first-time homebuyers to long-time investors. 

Strachan tells Now Toronto that the HST cuts are the most remarkable measure included in the province’s budget for homebuyers. According to him, the full 13 per cent tax relief is a significant step to support affordability for buyers in the province. 

“With today’s selling prices in general in the market being lower and a lot of incentives for new buyers, this further will help affordability and people’s ability to get into the market. Or, if they’re already in the market, to move to a larger home or a different home,” Strachan said. 

Will bring the heat back to the market? 

The average selling price of a home in Toronto was $1,008,968 in February, which is 7.1 per cent less than the year before, according to the Toronto Regional Real Estate Board (TRREB).

In fact, prices have been going down year-over-year in the region for the past few months, with many condo projects being delivered in the city, but some buyers are still holding off from purchasing due to global economic uncertainty. 

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As outlined by TRREB, only 3,868 home sales were closed through the board’s MLS System in February, which is a 6.3 per cent drop from last year at this time. 

With the new HST cuts, Strachan says it’s possible that the market will pick up the pace again, as the rebates offer an incentive for buyers to finally jump in. 

“I think this will be well received by potential buyers. I think there’s been a lot of people who have been contemplating buying and have been sitting on the fence or waiting. I think this signals a real opportunity for people to recognize significant savings to be able to qualify or afford a new home. That will definitely get some people moving off the fence and moving forward with buying a new home,” the COO added. 

Is now a good time to buy?

For those who are ready to move ahead with their search, be it their first home, an upgrade, or another investment, Strachan says now might be a great time. 

Between prices being down and the government ramping up incentives, the market is now favourable to buyers, but Strachan says he believes the situation will change soon, so buyers should jump in to avoid missing deals. 

“I do believe that we’re about to take an upswing,” he said. 

“This should help people buy homes, which, in turn, helps construction — which is another thing in Toronto, that construction has really slowed down, which has resulted in a lot of job losses in the Toronto area and other markets as well. So, by picking up a new home activity, we’ll also increase construction activity, which will ultimately help the overall economy as well,” he explained. 

In fact, Strachan says the budget will not only help buyers in the short term. 

As part of the budget, Ford’s government has also proposed a series of measures to accelerate new development across the province. 

The province has announced a 10-year capital plan to support more than $210 billion in infrastructure investments, with $37 billion in investments coming this year. This money will be used to build highways, transit, hospitals, and more. 

In addition, the province is also aiming to eliminate some fees and development standards to accelerate development, through the Protect Ontario by Building Faster and Smarter Act, 2025 and the Fighting Delays, Building Faster Act, 2025. 

Some of the measures outlined in the legislation include eliminating “red tape in the homebuilding process by simplifying planning and approval tools, including through municipal official plans, Ontario’s Building Code and site plan control,” and eliminating municipal development standard fees that go beyond health and safety requirements.

According to Strachan, these measures could also accelerate development, bringing more options for buyers. 

“Infrastructure being built in existing cities and new growth areas will help people who are already living in those areas, whether it’s roads, maybe a fire station, things like that, with the government directing money and investment towards infrastructure that will help existing neighbourhoods today,” he explained. 

Although he welcomes the budget, Strachan says the province is yet to reveal important details about these measures, and how they will in practice help developers and buyers. 

“We welcome these announcements. I think it’s the right thing to do for the government, great for Canadians. What we need is the details and the specifics of how it will be implemented. Because I know from buyers to builders are just trying to figure out, ‘Okay, how is this going to be implemented?’ What are the specifics so that we can get some early momentum going and people can take advantage of it,” he added.