RESCON applauds passage of long-awaited federal legislation eliminating GST on new homes for first-time buyers
Vaughan, Ont., March 12, 2026 (GLOBE NEWSWIRE) -- The Residential Construction Council of Ontario (RESCON) is applauding the federal government’s passage of Bill C-4, landmark legislation that eliminates the five-per-cent federal GST for first-time buyers on new homes priced at or under $1 million and reducing it for first-time buyers on homes between $1 and $1.5 million.
“While it took a long time to get here, the passage of Bill C-4 is extremely welcome news,” says RESCON president Richard Lyall. “Eliminating the GST for first-time buyers on new homes will make a meaningful difference for purchasers and help revive the new home market which has suffered greatly over the past couple of years. This has the potential to kick-start much-needed residential construction.”
The legislation, long advocated for by RESCON and other industry stakeholders, is expected to help improve housing affordability and stimulate new home construction at a time when the sector is facing severe economic headwinds. RESCON had been urging the feds to ensure the legislation passed as any delay would have risked further slowing new home sales due to potential buyers postponing purchases while waiting for the tax cut to take effect.
“The timing of this legislation is critically important,” said Lyall. “Without swift passage, many potential buyers would have delayed their decisions over the summer, which would have further weakened an already fragile housing market. This will help kick-start the market.”
Ontario’s housing sector has been grappling with declining housing starts, falling new home sales and mounting job losses. Recent analysis commissioned by RESCON shows the situation could worsen without decisive action. The decline in housing starts has already translated into more than 35,000 fewer person-years of employment compared with recent years.
“We have been sounding the alarm for some time that the housing market is deteriorating rapidly,” said Lyall. “Projects are being shelved, sales have stalled, and job losses are mounting across the industry. Measures like the GST elimination, which we have been pushing for some time, are exactly the type of action governments need to take to restore confidence in the market.”
High taxes are a significant factor driving up the cost of new homes in Ontario. Research shows that taxes, fees and government levies now account for roughly 36 per cent of the cost of a newly built home. On a $1-million home, that represents about $360,000 added to the price.
“Eliminating the GST for first-time buyers will help further reduce the tax burden on new housing and improve affordability,” said Lyall. “But governments must continue to examine the overall tax burden on buyers of new housing if they are serious about addressing the housing crisis.”
Earlier, Ontario announced it would be reducing its eight-per-cent provincial portion of the HST for first-time buyers of new homes once the federal initiative was passed. That means a first-time buyer of a new home will qualify for a combined total provincial and federal rebate of 13 per cent.
“Our governments tax new homes at rates comparable to products like alcohol and tobacco, which makes little sense when housing supply is so desperately needed,” said Lyall. “Tax relief measures like the GST cut and HST changes can help get builders back to building.”
RESCON is the province’s leading association of residential builders committed to providing leadership and fostering innovation in the industry.
Grant Cameron RESCON 905-638-1706 cameron@rescon.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
