TORONTO — Ontario is planning to temporarily expand HST rebates on the purchase of new homes, in a bid to boost a struggling home construction sector.

The government previously introduced rebates for first-time homebuyers on new homes valued up to $1.5 million, with homes valued at $1 million or less qualifying for the maximum amount of $130,000 when combined with a federal rebate.

Now, Premier Doug Ford is announcing that in Thursday’s budget, his government is proposing to expand the rebate for one year, both in terms of qualifying home purchases and not limiting it to first-time home buyers.

The temporary measure would see homes valued up to $1.5 million qualify for the maximum $130,000, decreasing proportionally to homes valued at $1.85 million, which would qualify for $24,000.

The province says the federal government is covering the five per cent federal portion of the HST, in a move Ontario says would provide nearly $2.2 billion in tax relief for housing in Ontario.

The Ministry of Finance estimates the measure will spark an additional 8,000 housing starts, at a time when the most recent government projections show the province building 70,000 new homes this year, far off the pace needed to meet a goal of 1.5 million homes in 10 years.

This report by The Canadian Press was first published March 25, 2026.

Allison Jones, The Canadian Press