The Central Lakes Association of REALTORS says it supports a newly announced plan to expand HST relief on new homes, calling it a practical step toward improving housing affordability and supply.
The measure, announced by the Ontario government in partnership with the federal government, would eliminate the 13 per cent HST on newly constructed homes valued up to $1.5 million, with rebates of up to $130,000. The program also includes a phased structure for homes above that price threshold between April 1, 2026 and March 31, 2027.
CLAR says expanding the rebate beyond first time buyers to include all purchasers reflects the realities of today’s housing market, where affordability challenges extend across a broader range of buyers.
The association says reducing upfront costs can help ease financial barriers, improve buyer confidence, and potentially encourage more people to consider newly built homes.
CLAR also points to broader market pressures, including rising development costs, limited housing supply, and higher borrowing rates, as ongoing challenges affecting affordability across Ontario. These factors have contributed to higher home prices and reduced access for many buyers.
The association says the expanded rebate could also support new construction, particularly in housing types that are currently in short supply. That includes “missing middle” options such as townhomes and multiplexes, which are seen as key to meeting the needs of growing communities.
CLAR says it will continue to support policies that improve access to housing and promote sustainable growth, noting that addressing affordability will require a combination of measures targeting both supply and demand.
(Written by: Joseph Goden)