BILD: Keeping added costs low is key to affordability of new homes

The HST rebate program is clearly helping buyers purchase their first new home.

Published Sep 04, 2026  •  3 minute read

Every new homebuyer acknowledges that when government taxes, fees and charges are low, affordability improves and makes the goal of owning a new home easier. SHUTTERSTOCK

As the campaigns of candidates running in Ontario’s municipal elections enter the last two months in the run up to Oct. 26, it is vital that voters and nominees alike understand how keeping added costs on new homes low increases affordability and makes a profound difference in the lives of those across the Greater Toronto Area (GTA).

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Government fees, taxes and charges across all three levels of government have historically added up to 25 per cent to the final purchase price of a new home in some communities in the GTA.

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Federal and provincial governments have taken steps to reduce that figure through temporary policy initiatives like the enhanced HST rebate program, where homebuyers in Ontario can save up to $130,000 on a new home under $1.5 million.

All three levels of government need to continue to take steps to reduce the level of added costs on new homes in Ontario to ensure the housing market remains affordable for all residents.

Through the enhanced HST rebate program, which began on April 1, 2026, some 6,500 families in Ontario (to date) were able to purchase new homes and take advantage of the cost savings of the program.

We have had the opportunity to speak to a few of those buyers who have purchased new homes in the GTA and heard what this program has meant to them. Here is a snapshot.

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Firstly, every new homebuyer acknowledged that when government taxes, fees and charges are low, affordability improves and makes the goal of owning a new home easier.

One home purchaser of a new single-family home in Whitby said that the $130,000 savings through the HST rebate program was the equivalent of saving on four to five years of mortgage payments.

Another home purchaser said they never would have been able to afford their new townhome without the HST exemption.

Secondly, it was clear that the savings from the HST rebate program has contributed massively to a better quality of life for new homeowners.

Many purchasers are new families and have been waiting for the opportunity to have a more comfortable home that could accommodate their changing needs.

For many, a new or larger home wasn’t an option for their growing families until the HST rebate program came into effect. For others, being able to purchase a new home close to their workplace or friends and family will further enhance their lives.

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Third, many of those who have taken advantage of the HST rebate program expressed great pride and happiness in their circumstances and ability to become a homeowner.

One purchaser of a new townhome in Aurora has said that this move will allow him and his partner to begin the next chapter of their life and think about having a family, while another purchaser of a townhome in King has said they never thought they would become a homeowner, let alone be able to afford a new build.

It has, unfortunately, too long been the case where young people have had to delay or postpone important life decisions for want of more suitable housing. The HST rebate program is helping with that.

Finally, all of the homebuyers consistently conveyed their gratitude towards the provincial and federal governments for recognizing the need to take action and help new, young families and new Canadians make homeownership a reality.

These testimonials show that there is positive and optimistic momentum in the market. And although these examples are based on one change, the enhanced HST rebate, it demonstrates the power and need to take a hard look at all government-imposed costs on new homes.

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Municipal governments also have the opportunity to help reduce added costs on new homes to improve project viability, leading to increased choice for those looking to buy a new home.

The need to elect officials who will continue to keep added costs low on new homes and guarantee other mechanisms like speedier approval timelines, pro-housing policies and organizational culture centred around housing affordability is clear.

As you engage with candidates running for office, ask them what they plan to do to lower the cost of housing if they are elected to municipal councils across the GTA on October 26 and allow more stories like those above to be told.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association, voice of the home building, land development and professional renovation industry in the GTA. Visit www.bildgta.ca.

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