Our plan: more homes for more people at a price they can afford

We are working to make housing more affordable and speed up construction of the homes that families across Ontario urgently need.

Our plan includes:

  • expanded HST relief for people buying new homes
  • partnering with municipalities to build more homes
  • reducing development costs so homes can be built faster and more affordably
  • expanding access to supportive housing
up to $200,000

in combined savings on new homes

up to $130,000

available in HST relief for eligible buyers of new homes

$8.8 billion

in investments over 10 years for housing-enabling infrastructure projects

Saving home buyers up to $130,000 with HST relief

Ontario’s expanded Harmonized Sales Tax (HST) relief on new homes could save eligible buyers, including first-time home buyers, up to $130,000.

This builds on the proposed Ontario HST rebate for first-time home buyers and expands the HST New Housing Rebate and New Residential Rental Property Rebate for one year.

How the HST relief works

Eligible buyers of new homes valued at $1 million or less would receive the full 13% HST relief while eligible buyers of new homes valued at more than $1 million would receive relief below the full 13% HST.

For example, if you’re buying a new home valued at:

  • $500,000, you could qualify for the full 13% HST relief of $65,000
  • $700,000, you could qualify for the full 13% HST relief of $91,000
  • $1 million, you could qualify for the full 13% HST relief of $130,000
  • $1.2 million, you could qualify for the maximum relief amount of $130,000
  • $1.7 million, you could qualify for a reduced relief amount of approximately $69,400
  • above $1.85 million, you could qualify for a maximum relief amount of $24,000

Chart: Maximum relief available under expanded HST relief

Chart showing the maximum relief available under the expanded Harmonized Sales Tax relief based on the fair market value of a new home. Long description follows.
Accessible description of chart

How to apply for HST relief

The Ontario government is working closely with the federal government to ensure timely implementation of the expanded relief. Further details on how to apply for the proposed expansion will be posted on this page when available.

While applications for HST relief are not open at this time, if you meet the relevant eligibility criteria, you can apply to receive the relief once applications open. For example, if you purchase an eligible home on or after April 1, 2026 and on or before March 31, 2027 you could apply at a later date to receive the HST relief even though the application process has not yet opened at this time.

Who is eligible

The relief would be broadly available on eligible transactions involving new homes.

The enhanced relief is subject to federal regulatory amendments and would generally apply to the same types of housing and follow the same eligibility conditions as Ontario’s existing HST New Housing Rebate (NHR) and New Residential Rental Property Rebate (NRRPR), subject to some additional conditions.

Homes used as primary place of residence

As is the case with Ontario’s existing NHR, you may be eligible for the enhanced relief if you buy a new home from a builder or you build, or hire someone else to build, a home on land you own or lease. An eligible home would generally include a detached or semi-detached house, a condominium unit, a townhouse or a rowhouse purchased or built for use as your primary place of residence.

New homes purchased from a builder

For a new home purchased from a builder, the enhanced relief would generally be available if:

  • the agreement of purchase and sale for the home was entered into with the builder on or after April 1, 2026, and on or before March 31, 2027; and
  • construction of the home begins on or before December 31, 2028, and the home is substantially completed on or before December 31, 2031.
Owner-built homes

For an owner-built home, the enhanced relief would generally be available if construction of the home begins on or after April 1, 2026, and on or before March 31, 2027, and the home is substantially completed on or before December 31, 2029.

Long-term residential rental properties

As is the case with Ontario’s existing NRRPR, you may be eligible for the enhanced relief if you buy a new residential property from a builder or you build, or hire someone else to build, a residential property on land you own or lease to rent for long-term residential use by individuals as their primary place of residence.

Construction begins on or before March 31, 2026

In the case of construction that begins on or before March 31, 2026, the enhanced relief would only apply to purchases of single-unit homes that are to be rented out to a long-term residential tenant.

An eligible single-unit home would generally include a detached or semi-detached house, a condominium unit, a townhouse or a rowhouse.

The enhanced relief would generally be available if:

  • the agreement of purchase and sale for the home was entered into with the builder on or after April 1, 2026, and on or before March 31, 2027; and
  • construction of the home begins on or before March 31, 2026, and the home is substantially completed on or before December 31, 2029.
Construction begins on or after April 1, 2026

In the case of construction of a residential property that begins on or after April 1, 2026, the enhanced relief would generally be available if construction of the residential property begins on or after April 1, 2026, and on or before March 31, 2027, and the residential property is substantially completed on or before December 31, 2029.

Limitations

To ensure that the enhanced relief is only available as intended (for example, to agreements entered into on or after April 1, 2026), a series of rules may apply to limit the availability of the enhanced relief in certain circumstances.

Additional details on the eligibility criteria will be posted on this page when available.

Other Ontario HST rebates available

First-time home buyers

Ontario has also proposed to remove the full 8% provincial portion of the HST for first-time home buyers of new homes valued up to $1 million with an effective date of March 20, 2025. This would mirror the federal GST/HST first-time home buyers rebate.

The rebate would generally apply to purchasers who entered into agreements of purchase and sale between March 20, 2025 and December 31, 2030, and where construction of the home begins on or before December 31, 2030 and is substantially completed on or before December 31, 2035.

In cases where a first-time home buyer qualifies for the expanded HST relief for all home buyers that was announced in March 2026, if the expanded HST relief is more generous than the HST rebate for first-time home buyers, the expanded relief would increase the amount of relief available to ensure maximum savings.

Purpose-built rental housing

Ontario has also removed the full 8% provincial portion of the HST on qualifying new purpose-built rental housing. This mirrors the federal GST/HST purpose-built rental housing rebate, and together, the provincial and federal actions remove the full 13% HST on qualifying projects.

The rebate generally applies to qualifying projects that begin construction between September 14, 2023 and December 31, 2030, and complete construction on or before December 31, 2035.

Lowering government fees and charges on Ontario homes

Municipal development charges are municipal fees levied by municipalities to fund municipal infrastructure. Over the years these costs have grown substantially in some municipalities, adding hundreds of thousands of dollars to the cost of a new home.

Together with the federal government, we’re investing $8.8 billion over 10 years in infrastructure that supports new housing. A large portion of this will be allotted to support municipalities through development charge reductions. To be eligible for the funding, municipalities must reduce development charges by up to 50% to help get more homes built and lower the cost of new homes for Ontario homebuyers

We’re also making separate investments in housing-enabling infrastructure like sewers, roads and water treatment plants to support new neighbourhoods, along with advancing innovative water and wastewater models that reduce municipal reliance on development charges.

How this saves home buyers money

Municipal development charges can add significant costs to new homes. For example, in the City of Toronto, development charges cost home buyers nearly $140,000 for a semi-detached home. These costs are currently bundled into the purchase price and are not clearly outlined to buyers. By lowering development charges and requiring clearer disclosure of these fees in new home agreements, we are improving transparency and reducing upfront costs of new homes to make housing more attainable and affordable.

Building homes faster and increasing rental options

We’re taking steps to build more affordable homes across Ontario by lowering costs for builders and getting more shovels in the ground.

Making home ownership more affordable

To help more people buy a home, Ontario is lowering costs for builders who construct affordable homes people can own.

For new ownership homes that meet affordability requirements, we have provided exemptions from development charges. This makes it cheaper to build these homes and encourages builders to focus on options for families and first-time buyers, making homeownership more attainable.

Increasing rental housing

Ontario is also reducing the cost of building and operating rental housing to increase the supply of rental options and help keep rents more affordable.

For qualifying new purpose-built rental housing, we have:

By lowering taxes and development costs, Ontario is making it more affordable for builders to construct rental housing. This creates more affordable choices for renters.

Related

Accessible chart description

A chart compares the expanded HST relief with existing relief based on the fair market value of a new home. The horizontal axis shows home prices, and the vertical axis shows maximum rebate amounts.

An orange area labeled “Expanded HST Relief” peaks at a maximum rebate of $130,000 for homes valued between $1 million and $1.5 million. It then decreases to a lesser rebate amount for homes valued over $1.5 million, until it hits a rebate amount of $24,000 for homes valued at $1.85 million and above.

A blue area labeled “Existing Relief” stays flat at $24,000 for all homes above $400,000, showing the lower rebate level without expansion.

Key data points depicted on the chart:

  • $700,000 home price: $91,000 in relief
  • $1.2 million home price: $130,000 in relief
  • $1.7 million home price: $69,500 in relief
  • $1.85 million home price and above: $24,000 in relief

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