Ontario needs decisive action to kick-start housing construction and give young people and their families new hope they’ll one day achieve their dream of owning a home. With a commitment to housing tax relief, the 2025 Ontario Fall Economic Statement is a strong step towards protecting the dream of home ownership and boosting housing supply.
The Toronto Regional Real Estate Board (TRREB) welcomes the government’s new Harmonized Sales Tax (HST) rebate on newly constructed homes for first-time homebuyers, which would translate to savings of up to $80,000. The proposed rebate, when combined with the federal measure, will remove the full 13 per cent HST on qualifying new homes up to $1 million, resulting in up to $130,000 back in the pockets of first-time homebuyers. The combined rebate would also allow first-time homebuyers to reduce the amount of HST they pay on a new home valued between $1 million and $1.5 million.
The HST rebate represents a meaningful step toward improving affordability and helping more Ontarians achieve the goal of home ownership by building on previous provincial legislation that reduced costly local development charges, streamlined planning, cut red tape, and focused on the delivery of more housing options and jobs near transit.
TRREB is urging the provincial and federal governments to move quickly to pass and implement these measures so that homebuyers receive the tax relief they desperately need and builders can boost the construction of much-needed housing.
We also welcome the province’s plan to develop a multi-year Ontario Tax Action Plan as part of the 2026 Ontario Budget. Modernizing Ontario’s tax system is essential to boosting productivity and strengthening competitiveness. For the housing sector, this means addressing the growing burden of development charges and re-examining how municipalities finance critical infrastructure. TRREB has been a leading voice in the fight to lower taxes on Ontario homes, and we look forward to supporting the creation of the new action plan.
The Fall Economic Statement also committed Ontario to introducing a Beneficial Ownership Registry for privately held business corporations by 2027. Once implemented, the registry will help combat money laundering and other illegal financial activity and strengthen public confidence in Ontario’s real estate market.
These measures are welcome, but the statement made clear that provincial housing starts are falling and the province’s resale housing market is also under pressure. Given the threat these challenges pose to jobs and our economy, governments must continue to look for ways to lower construction costs and reduce red tape in the months ahead.
Elechia Barry-Sproule
TRREB President