Ontario’s HST Freeze Sparks Surge in New-Build Homes Sales

News| April 15, 2026| Monte Stewart

New-build home sales in Ontario have surged following the launch of a 13% HST freeze.

The Ontario government’s move has triggered a sharp uptick in buyer activity across the province, according to The Globe and Mail.

In the first week after the rebate took effect on April 1, developers reported a significant increase in inquiries and transactions, with some buyers rushing to take advantage of the tax break aimed at clearing excess condominium inventory and stimulating the struggling homebuilding sector, the Globe reported.

Minto Group told the Globe that it sold nearly 120 new homes in Ottawa and the Toronto region during the initial week of the program.

“Because the market’s been so subdued, we might have gotten 10 to 15 over the course of a week, so that’s fantastic,” Michael Waters, Minto’s CEO, told the Globe. “The question is: Is this a short spurt that will peter out, or will it be sustained?”

Branthaven Homes reported a similarly strong response, selling more homes in the past week than in all of 2025, according to the Globe’s report.

“We’re ecstatic. It was so grim for the last four years and now this has breathed a little life into us,” Steve Stipsits, Brandhaven’s president and owner, told the Globe.

The company sold 120 townhomes in Milton and Mississauga, along with about 20 newly built condos in Oakville.

The freeze is in the form of a rebate that applies to buyers who enter agreements between April 1, 2026, and March 31, 2027, though it has yet to be formally enacted into legislation. If the bill tied to the 2026-27 provincial budget is passed, the entire 13% HST will be frozen on the total price of new homes valued up to $1.5 million, a maximum reduction of $130,000. Rebates will be reduced on a sliding scale for new homes valued between $1.5 million and $1.85 million. Homebuyers paying the maximum price will receive a $24,000 rebate.

Previously, the HST freeze only applied to new homes purchased by first-time homebuyers.

Despite the uncertainty the proposed legislation’s approval, many developers and buyers are proceeding as though the policy is in place, the Globe reported.

“It’s been a jolt to the industry,” Dave Wilkes, president of the Building Industry and Land Development Association, told the Globe noting that builders across the region have reported a surge in sales.

Some developers told the Globe that the rebound is already translating into hiring plans. Branthaven expects to rehire up to 30 staff, while subcontractors are also seeing renewed demand.

However, not all builders are experiencing increased sales, and questions remain about the durability of the recovery.

Mazyar Mortazavi, CEO of TAS told his interviewer that the rebate is an important step that could “help unlock some momentum,” but added it is too early to assess its full impact.

Fernbrook Homes reported strong interest but no completed transactions.

“We’ve had many calls and inquiries showing interest, which is positive,” CEO Joe Salvatore, told the Globe, adding that those inquiries have “resulted in no sales. Zero.”

He noted that buyers remain cautious amid economic uncertainty and ongoing questions about the rebate’s legislative status, describing them as “100,000% gun shy.”

Market analysts also caution that broader conditions may limit the rebound. “I don’t think we will see a wave of buyers. Demand and confidence is not all there,” Pauline Lierman, vice-president of market research at Zonda Urban, told the Globe.

The rebate comes after several years of weak preconstruction activity, during which thousands of condo units were cancelled or converted to rental projects due to declining demand, affordability challenges and financing constraints.

While early sales momentum is encouraging, developers told the Globe that sustained recovery will depend on improved market confidence and clarity around the rebate’s long-term implementation.

Adam Jacobs, head of Canadian research at Colliers, recently told Connect that he expects that Ontario’s new 50% development-charges cut will have more of an impact on development than the HST rebate.

The DCCs will be applied over three years, while the HST freeze is slated to last just one.

“I think [the cut is] going to move the needle more than a one-year removal of HST for new homes that papers off for higher prices,” said Jacobs previously. “That [HST freeze] certainly won’t hurt, but I don’t think it’s going to drastically change the market.”

Pictured: Toronto

Photo: Shutterstock