Ontario Waives HST on New Homes — Help Your Buyers Save Up to $130,000

<p>Scott Dillingham is a licensed mortgage broker who has helped clients finance over $1 billion in real estate. He works closely with REALTORS® across Ontario to help their clients get financing approved — and in this episode, Scott breaks down one of the most exciting government programs to hit the new construction market: Ontario's HST waiver on all new homes.</p><p>The Ontario government is waiving HST on all new homes in the province — and this program is not limited to first-time buyers. Any buyer purchasing a new construction home can take advantage of it. For homes valued at approximately $1.5 million or below, buyers can receive up to $130,000 back. For homes priced above that threshold, the government applies a sliding scale, with a minimum rebate of $24,000 for homes valued at $1.85 million or above. This is a massive savings opportunity that REALTORS® can use to attract and close more buyers.</p><p>On top of the HST waiver, there's another program that can be stacked on top: the Energy Star CMHC rebate. If a new construction home qualifies as an Energy Star rated home — which most new Ontario builds already do thanks to today's strict building codes — buyers can receive 25% of their CMHC insurance premium back. That works out to roughly 1% of the loan amount. On a $500,000 purchase with a minimum 5% down payment, that's an additional $4,750 back in the buyer's pocket.</p><p>Scott shares a real-world example of a developer in the Windsor Essex area building semi-detached two-unit homes for approximately $500,000. With no HST to pay and the potential Energy Star rebate, these homes become remarkably affordable — especially since the builder has specifically designed them so the basement rental income more than covers the full mortgage payment. This combination of programs and smart property design creates an incredible opportunity for REALTORS® to help clients who want to own a home with virtually no out-of-pocket housing cost.</p><p>Key Takeaways</p><ul><li><strong>Ontario's HST waiver applies to ALL new home buyers</strong> — not just first-time buyers — starting April 1st.</li><li><strong>Buyers can receive up to $130,000 back</strong> on homes valued at approximately $1.5 million or below.</li><li><strong>A sliding scale applies above $1.5M</strong>, with a minimum rebate of $24,000 for homes $1.85M and above.</li><li><strong>The Energy Star CMHC rebate adds 25% of the CMHC premium back</strong> — equal to approximately 1% of the loan amount.