The Ford government is set to remove the provincial portion of the harmonized sales tax (HST) on all newly constructed homes in Ontario, a major expansion of its current first-time buyer incentive. Finance Minister Peter Bethlenfalvy will announce the move in the spring budget, aiming to revive a struggling housing sector.
Originally, $470 million was allocated over three years for first-time buyers. But Premier Doug Ford said the targeted rebate failed to drive pre-construction sales, as he had predicted. He has long advocated for universal HST relief.
Industry sources say the expanded waiver could cost $2 billion, straining a budget already facing a $13.4-billion deficit and rising debt. The province’s goal of 1.5 million new homes by 2031 remains off track, with only 62,561 starts recorded in 2025.
The Ontario Home Builders Association supports full HST removal, arguing the initial policy reached just five percent of the market. Despite fiscal warnings, the government sees housing as key to economic competitiveness.
Bethlenfalvy called for fiscal stability but emphasized that a functioning housing market attracts jobs and strengthens the economy. The budget will be tabled March 26.