The HST cut on new homes implemented this past spring appears to be making a major impact already. It’s only been in effect for a few months, but home builders say sales have more than doubled. “I was surprised, because before that it was significantly slow,” said homebuilder Hesham Soufan, vice president of London-based Origin Homes. His company is part of a new subdivision going up in the Jackson Meadows neighbourhood in southeast London. He says it’s been a busy few months for the entire industry. “It just translates to more jobs, more opportunities, and lot better market for not just builders, but suppliers and trades as well,” explained Soufan. On April 1, the federal and Ontario governments cut the 13 per cent Harmonised Sales Tax on eligible new homes, saving buyers up to $130,000, with reduced rates for higher value homes. Realtor Joseph Pookombil says it’s been a gamechanger. “The buyers realising how the policy implementing, how much they can save instantly. And of course they get the brand-new house with builder warranty,” he said. According to the Ontario Home Builders Association, 8,410 new homes sold in Ontario in the first three months of the HST cut. That’s a 130 per cent increase over the same period in 2025, when 3,645 new homes sold. “This is literally the best time to buy,” said London Homebuilders Association CEO Jared Zaifman. He says the HST cut turned tire-kickers into motivated buyers. “You can get up to $130,000 off the price of your home. It’s huge, it’s substantial, and it’s getting people off the sidelines. We knew for so many people. Certainly, for first time homebuyers, but for anybody really, it’s a huge, huge benefit. And we’re seeing that in spades now,” he exclaimed. The program is open to all new homebuyers, not just first-time buyers. However, it’s a short window for savings. The HST cut on new homes is only in effect for one year, coming to a close at the end of March 2027.
