Since the Canadian and Ontario governments established the HST rebate on new home sales, the market has become hot! We are seeing an uptick in sales office visits and sales now that purchasers understand that they can save up to $130,000 because of this amazing incentive.

On June 18, Bill C-26 received royal assent, providing $1.7 billion to provinces and territories to help them increase housing supply. This paved the way for the expanded HST rebate on new Ontario homes to launch on the 22nd, after a three-month wait.

The expanded program offers the rebate to all buyers, not just first-time purchasers. Potential buyers have been sitting on the sidelines waiting for a big change in the market to spur them to act – and up to $130,000 is a lot of change!

This market catalyst is just one of the ways our governments have shown confidence in our economy and housing market. It is our job to get this fabulous message out to our colleagues, especially those who work in the sales offices, so they can pass it on to potential purchasers.

In a historic agreement aimed at building homes faster and making them more affordable, the Canada-Ontario Partnership to Build announced on March 30th made it possible for municipal development charges to be reduced by up to 50 per cent for three years.

The program will reduce taxes and fees for new homes in Ontario by up to $200,000 through lower development charges as well as the HST reduction. This is indeed a major step forward for our industry.

Build Communities Strong

The Build Communities Strong Fund, which came into effect on April 7th of this year, is investing in a wide range of infrastructure projects that support economic prosperity, housing, transit, climate adaptation and lifestyle wellbeing.

The fund promises $51 billion over 10 years, starting in 2026-27, and $3 billion per year ongoing. This initiative augments the federal government’s Build Canada Homes (BCH) program to spur housing construction at scale and speed. Already, BCH has committed nearly 15,000 units through 16 partnerships.

Having infrastructure strengthened by the Build Communities Strong Fund means everything from drinking water to stormwater systems, solid waste systems, community centres, hospitals, colleges, universities, public transit and more will be in place to serve homeowners.

Another exciting infrastructure program is the advancement of major transit programs in Toronto and Hamilton. The federal and Ontario governments and the City of Toronto have agreed to a cost share to construct the Waterfront East Transit line including the East Bayfront and Port Lands.

The governments are also working together to increase passenger service across the Greater Golden Horseshoe region, with the potential of creating new GO lines. The Alto High-Speed Rail (HSR) initiative will connect millions of people living around the Toronto-Quebec City corridor.

In addition, federal contribution agreements exist regarding announced transit projects such as the Ontario Line, Eglinton Crosstown West Expansion, Scarborough Subway Extension, Yonge North Subway Extension and Hamilton LRT.

These measures are happening in other provinces, too. At the end of July, the Alberta and Canadian governments announced a new infrastructure partnership to accelerate home building in that province.

New skilled workers initiative

Of special interest to the new home building industry is the launch of the $6 billion federal “Team Canada Strong” initiative, which will recruit, train and hire up to 100,000 new Red Seal skilled trades workers by 2030-2031.

These new skilled workers will have careers in housing, major infrastructure and defence projects. As the market heats up, we will need this new blood.

Adding to the good news, especially for residential developers, the Office of the Superintendent of Financial Institutions (OSFI) has made it possible for Canada’s biggest lenders to provide more capital for economic growth and investment.

All of this, plus the HST rebate, have created favourable conditions – an incredible opportunity for buyers. But as the adage goes, opportunity comes to pass, not pause. For example, condominium sales across the GTHA have increased year-over-year for the first time since 2023.

According to Urbanation, new condominium apartment sales (including bulk investor buying) increased 52 per cent annually in Q2 2026. The red flag in this uptick in new home sales is that once inventory is absorbed, prices will increase.

The old saying ‘Put your money where your mouth is’ certainly applies here. The message is loud and clear that our governments have faith in our economy and our new-construction industry.

They realize that people want to buy homes. We have had three consecutive months of positive momentum in the lowrise market involving buyers from across the spectrum – from first-time purchasers to those right sizing to accommodate their lifestyle changes.

Negotiating for savings up to $130,000, and more if you consider lower development charges, would not be feasible in a typical market. Savvy buyers are acting now. And as usual in this cyclical industry, our resilience comes through, and we are adjusting to a new reality.