The Ontario government is expected to waive the 8 per cent provincial portion of the Harmonized Sales Tax (HST) on the purchase of all newly constructed homes as part of its spring budget, to be released on Thursday, March 26.

The news follows a more limited plan introduced during the fall economic statement, which only provided tax relief to first-time homebuyers. That initiative allocated $470 million over three years to improve affordability.

“This is certainly a step in the right direction,” said Michelle Campbell, president of Canadian Mortgage Brokers Association of Ontario (CMBA Ontario). “It’s not only a win for prospective homebuyers, but also a positive signal for investors and builders looking to play a bigger role in the development of Ontario.”

The HST announcement also follows a federal government commitment to allow first-time buyers to save up to $130,000 on a new home under $1 million, and lower rebates for homes costing up to $1.5 million.

Advocacy groups are hoping eligibility for the Ontario rebate reflects that of the federal program, so as not to include homes not occupied by the owner or for investment properties.

As the provincial government returns to the legislature and prepares to release Budget 2026 on March 26, CMBA Ontario is also advocating for the land transfer tax rebate, which has been frozen at $4,000 since 2017. Since then, the average cost of a home in Ontario has increased by more than $300,000. Raising the rebate to $8,000 would correct its divergence from the pace of related costs and address another major obstacle to homeownership in Ontario.