Whitby Council has called on the Government of Canada and the Government of Ontario to remove the GST/HST from all newly-built or substantially renovated homes purchased from the builder as primary residences in Ontario.
Staff was directed to send the resolution to the Prime Minister of Canada, Federal Ministers of Finance, Housing, Infrastructure and Communities, and to the Premier of Ontario and Ontario Ministers of Finance, Municipal Affairs and Housing, Whitby MP and MPP, the Association of Municipalities of Ontario, and to all municipalities in Ontario.
Housing affordability is one of the most pressing issues facing Ontario families, according to Councillor Rhonda Mulcahy.
The current GST/HST rate on new homes in Ontario is 13 per cent, which adds tens of thousands of dollars to the cost of a typical home.
The existing federal and provincial HST rebates on new homes purchased from the builder are limited by purchase-price thresholds, with most new homes in Ontario priced above the level required to qualify for meaningful relief, thereby limiting their effectiveness in improving overall housing affordability, a town statement pointed out.
The federal and provincial governments have proposed new GST/HST rebates only for first-time homebuyers purchasing from the builder a newly built or substantially renovated home (see below)
According to research conducted by the Ontario Homebuilders’ Association, first-time home buyers currently represent approximately 5 per cent of the new home market, the statement said.
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