03/28/2026
Ontario’s HST Removal on New Homes: A Step in the Right Direction
The Government of Ontario decision to remove HST on new homes for all buyers is a meaningful shift in housing policy.
For the first time, this isn’t just about supporting first-time buyers.
It’s about supporting construction.
And that matters.
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Why this move is important
For years, HST has been one of the hidden barriers in new home development.
Removing it:
• Improves project feasibility
• Increases buyer affordability
• Encourages more new construction
• Helps small builders and infill developers make projects work
In simple terms:
More projects will now make financial sense.
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What this means for the market
We could start to see:
• Increased building permit activity
• More small-scale developments (duplexes, triplexes, multiplexes)
• Stronger momentum in custom homes and infill projects
• Gradual improvement in housing supply
This is especially important in high-demand markets like Toronto and the GTA.
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But let’s be realistic
This is not a complete solution.
Housing challenges are still tied to:
– Zoning restrictions
– Lengthy approval processes
– High construction costs
– Financing constraints
Removing HST helps — but it doesn’t eliminate these barriers.
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Bottom line
This policy won’t fix the housing crisis overnight.
But it will boost construction activity — and right now, that’s exactly what the market needs.
More supply starts with making projects viable.
This is a step in that direction.
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Curious to hear from others in the industry —
Will this policy change accelerate your decision to build?
—
Mehdi Hosseini
BCIN Designer | HCRA Licensed Builder | Realtor
Design • Permits • Build • Development Strategy
HousingPolicy GTAHomes
