Ontario proposes to cut home prices by up to $80K for some buyers

The Ontario government unveiled a plan on Tuesday proposing to cut home prices by up to $80,000 for first-time buyers in the province — and if a corresponding federal government proposal passes, some buyers will be saving as much as $130,000 on their new homes.

Even with home prices in the province on the decline, home ownership remains far out of reach for many Ontario residents — a sustained issue that, after years of heel-dragging, governments are starting to address through tax rebates.

The latest proposed rebate would see the 8 per cent provincial share of HST cut for first-time home buyers on new homes priced as high as $1 million.

In dollar figures, that rebate would slash up to $80,000 off the cost of a new home, which, when combined with a matching rebate proposed by the federal government to slash its 5 per cent share of the HST, would combine for $130,000 in savings.

The Ford government plans to include the proposal in its upcoming 2025 Fall Economic Statement, hailing it as a key step in the province's strategy to combat U.S. tariffs.

Peter Bethlenfalvy, Minister of Finance, calls the proposed HST rebate a case of "leading by example – saving families money on one of the biggest financial transactions of their lives."

Ontario's proposal has already been hailed by housing groups, including Dave Wilkes, President and CEO of the Building Industry and Land Development Association (BILD), who called the move "a step in the right direction in addressing the worst housing downturn on record," and said that BILD "appreciates the efforts of the provincial government."

"With GTA new housing prices down 20 per cent from the peak and these new measures, now is a great time for first buyers to step off the sidelines and get into the market," said Wilkes.

The sentiment was echoed by Richard Lyall, President of the Residential Construction Council of Ontario (RESCON), who reiterated that the council "has been advocating for an aligned GST/HST rebate for first-time homebuyers," and is grateful to the provincial government for their announcement.