The Ontario Minister or Finance, Peter Bethlenfalvy, released new initiatives and plans to help first-time home buyers in the province.
Ontario’s new rebate would eliminate the full 8 per cent provincial portion of the HST for first-time home buyers on qualifying new homes valued up to $1 million. This will save the home buyers up to $80,000 off the cost of a new home when combined with existing provincial relief, said a provincial statement.
The average price for a new home in the Durham Region is approximately $832,000, based on analysis of new build listings, reports say.
“With tariffs taking direct aim at Ontario workers and communities, it has never been more important for the government to deliver on its plan to protect Ontario. We continue to make historic investments in highways, transit, health care and all the other services our communities rely on, so we can build for our growing province. We are doing this all while keeping costs down for families and helping to unleash Ontario’s full economic potential,” said Minister Bethlenfalvy.
Welcomed But With Concern
The Canadian Mortgage Brokers Association of Ontario (CMBA Ontario) welcomed the rebate. “Home ownership is a goal most Ontarians aspire to, and many would-be first-time buyers have been frustrated in recent years by soaring prices and fees that keep it out of reach. Waiving the provincial HST for these homes, in conjunction with the federal government’s similar proposal, would make this goal that much more attainable for families across the province.”
However, CMBA-ON has concerns. The multiple conditions – only for first-time buyers, of only new homes, only valued under $1 million – serve to shrink the number of eligible buyers and homes considerably. In some of the more costly areas in the province, this policy change will likely affect very few properties. For example, in the Greater Toronto Area – where almost half the province’s population resides – the average price of a new single-family home is greater than $1.4 million. Under the province’s proposal, buyers of these homes would see no relief, it pointed out.
CMBA said that they “applaud the province’s intent to improve housing affordability for first-time buyers. With some modifications, such as capping the HST break to $1 million of the value of a home, the province can deliver even greater support for first-time buyers. That would offer truly impactful change for those Ontarians looking to achieve their dream of home ownership.”
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