Residential Construction Council of Ontario (RESCON)<\/a> is applauding the federal government\u2019s 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.<\/p>\n\u201cWhile it took a long time to get here, the passage of Bill C-4 is extremely welcome news,\u201d says RESCON president Richard Lyall. \u201cEliminating 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.\u201d<\/p>\n
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.<\/p>\n
\u201cThe timing of this legislation is critically important,\u201d said Lyall. \u201cWithout 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.\u201d<\/p>\n
Ontario\u2019s 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.<\/p>\n
\u201cWe have been sounding the alarm for some time that the housing market is deteriorating rapidly,\u201d said Lyall. \u201cProjects 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.\u201d<\/p>\n
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.<\/p>\n
\u201cEliminating the GST for first-time buyers will help further reduce the tax burden on new housing and improve affordability,\u201d said Lyall. \u201cBut governments must continue to examine the overall tax burden on buyers of new housing if they are serious about addressing the housing crisis.\u201d<\/p>\n
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.<\/p>\n
\u201cOur governments tax new homes at rates comparable to products like alcohol and tobacco, which makes little sense when housing supply is so desperately needed,\u201d said Lyall. \u201cTax relief measures like the GST cut and HST changes can help get builders back to building.\u201d<\/p>\n
RESCON is the province\u2019s leading association of residential builders committed to providing leadership and fostering innovation in the industry.<\/i><\/p>\n![\"\"](\"https:\/\/ml.globenewswire.com\/media\/ODI4NDZhNjAtYjgwNC00ODVmLWI4MTgtYTcxY2NkMGJmMTM4LTEyMDU4NzMtMjAyNi0wMy0xMi1lbg==\/tiny\/RESCON.png\")
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Vaughan, Ont., March 12, 2026 (GLOBE NEWSWIRE) — The Residential Construction Council of Ontario (RESCON) is applauding the federal government\u2019s 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 […]<\/p>\n","protected":false},"author":3,"featured_media":404470,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/ml.globenewswire.com\/Resource\/Download\/1e59982f-662d-41a3-9ad3-8a6409db8a39","fifu_image_alt":"","footnotes":""},"categories":[57166],"tags":[],"class_list":["post-404469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-globenewswire"],"acf":[],"_links":{"self":[{"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/posts\/404469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/comments?post=404469"}],"version-history":[{"count":0,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/posts\/404469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/media\/404470"}],"wp:attachment":[{"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/media?parent=404469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/categories?post=404469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailybanglanewspapers.com\/news\/wp-json\/wp\/v2\/tags?post=404469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}