Ottawa Home Builders Praise Expanded HST Relief for New Home Buyers

OTTAWA, ON – March 25, 2026 – The Greater Ottawa Home Builders’ Association (GOHBA) applauds today’s announcement of a temporary expansion of the HST New Housing Rebate for one year to all new home buyers, calling it a significant win that improves housing affordability for buyers.

 

“This tax relief translates into a direct reduction on the cost of housing,” said Jason Burggraaf, Executive Director of GOHBA. “Hopefully everyone who has been waiting on the sidelines for this announcement will now jump into the market and we’ll see sales across Ottawa increase.”

 

The full 13 per cent sales tax reduction will apply to new homes with a purchase price under $1 million for all buyers who intend to use the home as their principal residence. The change will provide a flat $130,000 sales tax reduction for new homes valued between $1 million and $1.5 million, while there will be a declining tax reduction from $130,000 to the existing $24,000 provincial rebate amount for homes valued between $1.5 million and $1.85 million. New homes in excess of $1.85 million will continue to receive the $24,000 provincial rebate.

 

Only purchases of new homes made on or after April 1, 2026 are eligible for the sales tax reduction. As currently defined within the regulations, substantially renovated new homes are treated as new housing for tax purposes and are included in this new policy measure.

 

GOHBA, the Ontario Home Builders’ Association, and regional associations across the province have been actively advocating for broad-based HST relief and will continue working with governments to ensure these measures translate into increased housing delivery and long-term affordability improvements.

 

“This is exactly the kind of bold move that the new home construction industry needed as we face low sales activity across the province. The provincial and federal governments should be commended for reducing the tax burden on new homes, which makes homeownership more attainable and helps restore confidence in housing markets,” said Burggraaf. “A strong residential construction and professional renovation industry supports jobs, economic growth, and communities across Ontario.”

 

GOHBA looks forward to continuing to work with all levels of government to get homes built and continue advancing practical, scalable solutions to increase supply and restore affordability for current and future residents of Ottawa and across Ontario.