OREA Welcomes Ontario Housing Measures, Calls for Extension of HST Relief Deadline

The Ontario Real Estate Association (OREA) has welcomed the provincial government's 2026 Fall Economic Statement but is urging it to extend temporary tax relief for new-home buyers beyond March 2027.

The association says the current deadline could prevent many prospective homeowners from benefiting from the harmonised sales tax (HST) relief introduced by the Ford government.

Ontario Finance Minister Peter Bethlenfalvy presented the economic statement on October 29, 2026. OREA's Acting Chief Executive Officer, Diane J. Brisebois, commended the government for introducing measures aimed at reducing housing costs and increasing supply.

Key Housing Measures in Ontario's Economic Statement

Among the major initiatives highlighted in the statement is the $8.8-billion Canada-Ontario Partnership to Build, a 10-year programme designed to support housing-related infrastructure and help reduce municipal development charges.

The government also confirmed temporary HST relief on eligible new homes valued at up to $1 million, offering potential savings of up to $130,000 per transaction.

OREA says the measures could help expand infrastructure, encourage more housing construction, reduce home costs and create employment opportunities.

The statement also includes an $8.7-billion Canada-Ontario action plan to protect the province's industrial sector from ongoing US tariff pressures.

OREA Seeks Longer HST Relief Period

Despite welcoming the measures, OREA wants the government to extend the HST relief deadline beyond March 31, 2027, arguing that a longer period would give more families the opportunity to benefit.

The association has also emphasised the impact of development charges on housing affordability. Data from the Canada Mortgage and Housing Corporation shows that charges for a two-bedroom apartment range from approximately $39,600 in Ottawa to $121,500 in Markham.

OREA President Kim Fairley said the relief could make a significant difference for buyers in different parts of the province, including northern Ontario, where new homes typically cost between $600,000 and $700,000 in areas such as Sault Ste. Marie.

Industry Experts Highlight Affordability Challenges

While industry representatives have welcomed the government's intervention, concerns remain about whether the measures will be enough to make new homes affordable without broader municipal reforms.

Toronto-based mortgage professional Matthew O'Neil noted that pre-construction condominiums remain significantly more expensive than resale properties, even with the new tax relief.

Another mortgage professional, Micky Khaneka, described the initiative as a positive signal that the government is responding to concerns about housing affordability.

OREA says extending the HST relief period would give more prospective buyers time to take advantage of the programme while supporting the province's wider housing goals.

Canadian Mortgage Professional