After a long wait, governments take action

By Grant Cameron

Apr. 6, 2026

They say good things come to those who wait. RESCON had been waiting a long time for governments to take serious action to eliminate the HST for all buyers of new houses and condos - not just first-timers.

The wish was granted in late March.

Ottawa and Queen’s Park agreed to exempt the 13-per-cent sales tax on all new homes worth $1 million or less, with graduating amounts from $1 million to $1.5 million, and a lesser amount up to $1.85 million.

It’s only for a one-year period. Nonetheless, it is a step forward for the industry. The residential construction sector needed a lifeline. This might be the answer.

New homes are too expensive for many buyers, due in large part to the exorbitant plethora of taxes, fees and levies. People are leaving our cities because they can’t afford a home. A report produced for RESCON by the Canadian Centre for Economic Analysis revealed that taxes, fees and levies account for 36 per cent of the cost of a new home. The HST plays a big part in that.

In a press release, RESCON president Richard Lyall noted that there has been a dramatic slowdown in new home sales and housing starts across the province and the stakes could not be higher.

The changes mean both the provincial and federal government rebates would be available if the agreement of purchase and sale for a new home is entered into with the builder between April 1, 2026, and March 31, 2027.

Earlier, Ontario announced a proposal to remove the full eight-per-cent provincial portion of the HST for first-time home buyers of new homes valued up to $1 million, mirroring the proposed federal GST/HST First-Time Home Buyers Rebate which the federal government adopted following months of advocacy from Ontario.

Click here to read RESCON’s press release and click here to read the government announcement. RESCON applauded the earlier federal move in a column in Canadian Contractor.

We had called for changes to the HST in a column in Storeys, along with others in The Toronto Sun, a column in Canadian Real Estate Wealth, and another in Canadian Forest Industries.

Red tape & regulation

In a Canadian Real Estate Wealth column, we noted that too much regulation is making new homes unaffordable and explained how regulatory mazes hike costs, and in a column in Real Estate Magazine we highlighted in a column why it’s important to fix the approvals system before the housing crisis gets worse.

PropTech & ConTech

In a Builder Bites column, we explained why it is crucial to modernize how we approve, design and build new housing and noted that what is required now is leadership, co-ordination and the political will to act.

Tiebacks

In a column in Canadian Contractor, we explained that in several municipalities proposals have been put forward to ban tiebacks, which is deeply troubling and would be counterproductive.

World Cup delays

CityNews interviewed RESCON president Richard Lyall about how restricting construction work during the FIFA World Cup could disrupt construction projects in Toronto. He pointed out that construction sequencing and contracting is very precise and it’s very costly to pause construction.

Economy

The effect that the slowdown in residential construction will have on Ontario’s economy was explored in a column in Daily Commercial News. If the trend continues, the consequences will extend far beyond the housing sector. They’ll ripple through the broader economy and labour market.

Development charges

On the Move Smartly Show, Lyall discussed with host John Pasalis, president and broker of Realosophy Realty, what it will take to restart Ontario’s housing industry. Click here to listen to the podcast.