Ontario Waives HST on New Homes — Help Your Buyers Save Up to $130,000
In this episode, Scott breaks down one of the most exciting government programs to hit the new construction market: Ontario's HST waiver on all new homes. The Ontario government is waiving HST on all new homes in the…
Show notes
Scott Dillingham is a Licensed Mortgage Agent Level 2 who has helped clients finance over $2B+ in real estate. He works closely with REALTORS® across Ontario to help their clients get financing approved — and in this episode, Scott breaks down one of the most exciting government programs to hit the new construction market: Ontario's HST waiver on all new homes.
The Ontario government is waiving HST on all new homes in the province — and this program is not limited to first-time buyers. Any buyer purchasing a new construction home can take advantage of it. For homes valued at approximately $1.5 million or below, buyers can receive up to $130,000 back. For homes priced above that threshold, the government applies a sliding scale, with a minimum rebate of $24,000 for homes valued at $1.85 million or above. This is a massive savings opportunity that REALTORS® can use to attract and close more buyers.
On top of the HST waiver, there's another program that can be stacked on top: the Energy Star CMHC rebate. If a new construction home qualifies as an Energy Star rated home — which most new Ontario builds already do thanks to today's strict building codes — buyers can receive 25% of their CMHC insurance premium back. That works out to roughly 1% of the loan amount. On a $500,000 purchase with a minimum 5% down payment, that's an additional $4,750 back in the buyer's pocket.
Scott shares a real-world example of a developer in the Windsor Essex area building semi-detached two-unit homes for approximately $500,000. With no HST to pay and the potential Energy Star rebate, these homes become remarkably affordable — especially since the builder has specifically designed them so the basement rental income more than covers the full mortgage payment. This combination of programs and smart property design creates an incredible opportunity for REALTORS® to help clients who want to own a home with virtually no out-of-pocket housing cost.
Key Takeaways
- Ontario's HST waiver applies to ALL new home buyers — not just first-time buyers — starting April 1st.
- Buyers can receive up to $130,000 back on homes valued at approximately $1.5 million or below.
- A sliding scale applies above $1.5M, with a minimum rebate of $24,000 for homes $1.85M and above.
- The Energy Star CMHC rebate adds 25% of the CMHC premium back — equal to approximately 1% of the loan amount.
- Most new Ontario builds already qualify for Energy Star status due to current provincial building codes.
- Stacking both programs delivers maximum savings — eliminating HST and recovering a portion of mortgage insurance costs.
- Smart developers are designing rental-income units that allow buyers to cover their full mortgage with basement rental income.
- REALTORS® can use these programs as a powerful buyer conversation starter to close more deals on new construction properties.
Show Resources
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Links and Show References
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- (00:00) - Welcome & Introduction
- (00:05) - Ontario HST Waiver on New Homes
- (00:36) - How the Rebate Works: Up to $130,000
- (01:27) - Energy Star Program: 25% CMHC Fee Rebate
- (01:51) - Stacking Both Programs for Maximum Savings
- (02:33) - Real Example: Windsor Essex $500K Semi-Detached Homes
- (03:21) - Rent-to-Cover-Mortgage Strategy
- (03:53) - Key Takeaways & Action Steps for REALTORs
Transcript
Introduction
Ontario Waives Hst On New Homes Help Your Buyers Save Up To 130 000
Ontario Waives HST on New Homes — Help Your Buyers Save Up to $130,000 Scott Dillingham is a Licensed Mortgage Agent Level 2 who has helped clients finance over $2B+ in real estate. He works closely with REALTORS® across Ontario to help their clients get financing approved — and in this episode, Scott breaks down one of the most exciting government programs to hit the new construction market: Ontario's HST waiver on all new homes. The Ontario government is waiving HST on all new homes in the province — and this program is not limited to first-time buyers.
\n\nAny buyer purchasing a new construction home can take advantage of it. 5 million or below, buyers can receive up to $130,000 back. 85 million or above. This is a massive savings opportunity that REALTORS® can use to attract and close more buyers.
\n\nOn top of the HST waiver, there's another program that can be stacked on top: the Energy Star CMHC rebate. If a new construction home qualifies as an Energy Star rated home — which most new Ontario builds already do thanks to today's strict building codes — buyers can receive 25% of their CMHC insurance premium back. That works out to roughly 1% of the loan amount. On a $500,000 purchase with a minimum 5% down payment, that's an additional $4,750 back in the buyer's pocket.
The Core Idea
\n\nScott shares a real-world example of a developer in the Windsor Essex area building semi-detached two-unit homes for approximately $500,000. With no HST to pay and the potential Energy Star rebate, these homes become remarkably affordable — especially since the builder has specifically designed them so the basement rental income more than covers the full mortgage payment. This combination of programs and smart property design creates an incredible opportunity for REALTORS® to help clients who want to own a home with virtually no out-of-pocket housing cost. \n\nKey Takeaways Ontario's HST waiver applies to ALL.
This detailed transcript was generated from the full audio using Whisper base model with language en, then formatted into readable paragraphs for SEO and accessibility. The episode covers practical strategies that REALTORS can apply immediately to help clients navigate financing challenges and close more transactions in a competitive market. Scott emphasizes that understanding lender criteria, documentation requirements, and program nuances is essential for realtors who want to differentiate themselves and provide value beyond opening doors. He shares real examples from his experience closing over one billion dollars in real estate, illustrating how small changes in approach can unlock approvals where other lenders said no.
The discussion continues with actionable takeaways for listeners, including checklists, questions to ask lenders, and ways to frame conversations with buyers who are hesitant due to rate concerns or down payment constraints. Listeners are encouraged to share the episode with colleagues and to revisit the show notes for links and resources mentioned during the recording. Key takeaways include understanding program eligibility, preparing clients before they shop for homes, and partnering with a mortgage specialist who can access multiple lenders rather than relying on a single bank. The episode wraps with an invitation to book a strategy call and to subscribe for weekly updates.
Thank you so much for tuning into the show today. If you found value, please follow the show and rate it five stars. It would mean the world to me. And lastly, all the resources that we spoke about are at the bottom of the show notes.
Deep Dive
Looking forward to seeing you in the next episode. Ontario Waives HST on New Homes — Help Your Buyers Save Up to $130,000 Scott Dillingham is a Licensed Mortgage Agent Level 2 who has helped clients finance over $2B+ in real estate. He works closely with REALTORS® across Ontario to help their clients get financing approved — and in this episode, Scott breaks down one of the most exciting government programs to hit the new construction market: Ontario's HST waiver on all new homes. The Ontario government is waiving HST on all new homes in the province — and this program is not limited to first-time buyers.
\n\nAny buyer purchasing a new construction home can take advantage of it. 5 million or below, buyers can receive up to $130,000 back. 85 million or above.