Residential Market Commentary - Tax Break Benefits

Government spending programs and tax relief initiatives are often criticized as costly and ineffective.  But the current tax break for new home buyers in Ontario is winning praise from two, influential industry groups in the province. 

The Building Industry and Land Development Association (BILD), and the Ontario Home Builders’ Association (OHBA) are crediting a joint federal-provincial HST rebate program for a spike in new home sales.  Figures collected by BILD and OHBA indicate a 130% increase in new home sales in the second quarter (April, May, June) compared to the same period a year ago. 

“In the second quarter of 2026, there were 8,410 new home sales in Ontario – of which 4,765 were incremental and attributable to the HST rebate program,” according to a report compiled for the industry groups. 

There were 3,645 new home sales across Ontario during the second quarter of 2025. 

The builders and developers also credit the rebate program with suporting 17,300 construction jobs, preserving $2.8 billion in GDP and maintaining $1.4 billion in gross government revenues. 

The Ontario HST rebate took effect in late June.  It covers new homes, priced up to $1 million dollars, purchased by first-time buyers between April 1, 2026 and March 31, 2027.  It provides up to $130,000 in savings.  Variations of the rebate are available for homes priced up to $1.85 million.

- First National Financial LP