Residential Market Commentary - More Money for More Homes

The federal government has announced a plan to put up $1.7 billion in an effort to get more homes built across the country. 

The announcement on Thursday of last week (March 26) was a bit anti-climactic because the provincial government in Ontario revealed what it intended to do with its share of the money a day earlier. 

On Thursday federal finance minister Francois-Philippe Champagne tabled legislation that would hand money to the provinces to use, in almost any way they see fit, to get more homes built. 

“With respect to this particular program, we’re going to rely on our provincial and territorial partners to use that money in the most efficient way to increase the supply,” Champagne said. 

The minister also said the money would be ready to deploy this spring, but that did not stop the Ontario government from stealing some of Ottawa’s thunder, the day before the announcement. 

On Wednesday Premier Doug Ford revealed Ontario would be using its share of the funding to expand a harmonized sales tax (HST) rebate program. 

The measure, which was included in the Ontario budget on Thursday, will offer a year-long HST rebate program to all buyers of qualifying homes.  Previously only first-time buyers were eligible under the federal GST/HST First-Time Home Buyers Rebate. 

As of April 1, 2026, newly-built, homes in Ontario, valued at up to $1.5 million, would be eligible for a maximum of $130,000 in HST relief.