The Ford government is poised to offer all home buyers a significant tax discount on newly built homes, Global News has learned, in a major expansion of a government program designed to breathe life into Ontario’s sluggish housing sector.
As part of his spring budget, Finance Minister Peter Bethlenfalvy is expected to announce that the provincial portion of the harmonized sales tax will be removed for anyone buying a newly constructed home, rewriting a policy the government introduced just months ago.
The original version of the plan, introduced during the fall economic statement, allocated $470 million over three years to give first-time Ontario homebuyers a tax break on new homes.
Ontario’s pledge to waive its portion of the HST came shortly after a similar announcement by the federal government — allowing first-time homebuyers to save up to $130,000 on a new home under $1 million, and lower rebates for homes costing up to $1.5 million.
Only a few months after introducing the policy, however, the premier said it had failed to produce the pre-construction sales the province had hoped for —something Ford said he had warned would happen.
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“I have always been an advocate of getting rid of the HST for everyone,” Ford said in January.
“We did it for first-time homebuyers, but obviously that didn’t move the needle, which I predicted it wouldn’t move the needle. Let’s open it up to anyone who wants to buy a new home.”
But Bethlenfalvy, Ford said, has always been cautious of the costs.
“Thank you for being tight as skin on a grape when it comes to spending taxpayers’ money,” Ford recently said of his finance minister.
Development industry sources told Global News the government had indicated to them that waiving tax for all new homes could cost the treasury $2 billion, substantially more than the $470 million for limiting it to first-time homebuyers.
The additional cost would come at a time when the finance minister’s budget has ballooned to a record $236 billion, with a $13.4-billion deficit and a provincial debt that’s set to cross the half-a-trillion-dollar threshold in 2027.
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At a recent pre-budget speech at the Empire Club, Bethlenfalvy warned that Ontario’s outlook is “uncertain” amid global instability and suggested the government needs to restrain spending.
“From a fiscal perspective, stability matters,” Bethlenfalvy said.
Still, the government’s efforts to build 1.5 million homes by 2031 have fallen flat — there were just 62,561 housing starts in 2025 — leading to calls for additional government intervention to stimulate the market.
The Ontario Home Builders Association argued that limiting the HST rebate to first-time homebuyers would impact only five per cent of the market and called for an “Ontario-led approach” to remove the sales tax off all new home purchases.
While the Ford government has been appealing to the federal government to broaden their HST exemption, the province is willing to go it alone.
“A functioning housing market is a competitiveness strategy that helps attract and keep construction jobs while boosting affordability and growing our economy,” Bethlenfalvy told the Empire Club.
The finance minister will table the budget on March 26.
How about bassing a bill that states you can only tax a commodity once. Houses and cars should not be taxed after initial purchase. You tax the land every year isn’t that enough.
As much as all levels of government at least at the surface are trying to jumpstart housing, unfortunately this HST break will not help because this credit will not trickle down to the buyer. Builders has included clauses in the purchase & sale agreement that allows them to claim this credit on top of the purchase price. So if the PM and the Premier really meant helping to jumpstart the industry, they should also legislate that, builders can’t force buyers to waive their right to claim the HST.
And so the MOGA saga continues with Canada’s Trump….
So for all us that own homes fight like hell keeping it we don’t count at all . No breaks for us . We had to bust are asses make it or break it to pay your bills and the mortgage but not once go asking for handouts like the younger generation how’s this fair Doug ford ? We got up daily went to work came home had are kids bought groceries paid bills never late on any of them or behind hand two vehicle loans paid them mortgage and moved on . We’re on are 6 home let me say this our son just bought his first home 25 yr mortgage has half it paid off in 6 yrs already not once has he asked for handouts out and it’s brand new home and he refused all the handouts that were offered to him . He’s got and other 10 yrs it be paid off . And yet all these young ones are crying for handouts and free bees why cause your dump ass gives it out to them stop it ……
Rodken there already is no HST on most non-processed foods
Great idea – too bad the federal liberals seem to have forgotten their campaign promises…
Yes please drop the the HST on new homes . You should be looking at making it easier for people to purchase modular homes. Also it’s crazy to try and get a mortgage on a modular in a park setting. A lot of seniors downsizing especially to a park setting which is easier
Wow money for developers. House prices are based on new and resale homes. Any lower price in new homes will be pocketed by the developers. Shameful again ford shameful.
Why is Ford not rallying for elimination on the clean fuel tax and industrial carbon tax, at least while fuel prices remain high??
The HST is a very small part of the high price of housing for 1st time buyers.
Another action that the government could work on is changing official plans that stop rural residents fro.being able to sever or give land to their children where no services are required, so that they can build close to family. Private field beds & water systems, with a clause of no further demands already on existing roads costs nothing for the city who stands to reap benefits of tax dollars that help defray costs of repairs to urban areas. Older farm owners who want their children to help keep the farm going also would benefit from these changes.
Not everyone wants to live in urban areas & pay high rents… Very few options in rural areas!
all parasites strap in. will be falling and falling and falling and falling. and it should be crushed further building millions of them and prohibiting immigration from 3rd world, globalism, speculation ,feminism and giving it to young couples. they are not planning to do anything of it but they will be forced to either way. nature always wins, it’s either you or someone else will be after you
I have a better idea. Give every Canadian $1000 per month to pay for Mortgage or rent the depending of what they have and cut every single penny that goes outside the country for aid.
This will buy enough time for the economy to balance income to rise and then you can suspend the program maybe after 5 to 10 years
Is that for all new homes regardless of price too?
Its taken a year! Moving at half the speed of smell. This should have been done first thing.
Any relic helps. It what about older condos and the cash cow tax harvest including hat on top of building envelope retrofits the ones backed by automatic liens if an owner doesn’t pay up for special assessments if the reserve fund is inadequate because the cao endorsed the wrong rule for contrition from maintenace fees for years
Then he wonders why cities have to increase taxes on the houses. Won’t take responsibility
How about we wave it for food! I don’t buy houses. But like everyone else I eat food.
I’m hungry!!
Which means YOUR taxes will have to go up to support the infrastructure and improvements needed to expand the system.
YOU pay more so they pay less.
Not a win win situation.