Ontario Waives HST on New Homes — Help Your Buyers Save Up to $130,000

Welcome back to the Close More Deals podcast. I'm your host, Scott Dillingham. Today, I wanna make this announcement for you, an episode because the Ontario government is working with the provincial government to waive HST on all new homes in Ontario. Now this does not have to apply for a first time home buyer, and it it it works for any buyers. And there's another program that you can combine with it.

So I wanna dive into kind of what we're doing for our clients. Now this program starts April 1. So by the time you're hearing this, it's gonna be active. So you can get up to a $130,000 rebate. This applies to homes at approximately 1.5 or below.

If it's above that, the government has a sliding scale of a reduction in that to a minimum of 20 sorry, maximum of $24 as a rebate for homes valued at 1.85 or above. So what the government is essentially doing is they're limiting the rebate for wealthy buyers, but they're offering maximum rebate to those that are not wealthy. Right? So the 13% applies again up to a $130,000. Now let's and actually, I'm I'm gonna I'm gonna give you an exact example, but we have another program available where you could do an energy audit and your home gets an energy rating.

And if your home is rated as an energy star rated home, you can actually get 25% of the buyer's CMHC fee. They can get that back. So when you combine these programs and here's the beautiful thing. Ontario code has gotten so tough that when you do build a new property, it generally meets most, if not all, the ENERGY STAR criteria. So most of these homes, not all of them, but most of these homes will automatically qualify for the ENERGY STAR rating.

So it depends on where you're located, and we've got the team. We can we can show you guys if if you work with us for the financing for your buyers. But, ultimately, what you can do is you can get the energy audit done on this new construction property. If it meets the criteria, the borrower gets 25% of the CMHC fee like I already mentioned. That equals about, well, exactly 1% of the loan amount.

So let me give you an example, and I'll show you exactly what we're building. So we are working with a developer who's in the final stages of you know, getting the project ready to go because there's some some things you gotta do before. But, ultimately, he's going to be selling semi detached two unit homes for approximately 500,000. Now at 500,000, we need $25 down as the minimum down payment, so 5%. This borrower is gonna get 4,750 back pending that the new home meets the ENERGY STAR requirements.

Obviously, they're not gonna pay the HST, so the purchasing price is gonna be less. Now this builder is setting these homes up strategically so you can rent out the basement, and the rent should more than cover the complete mortgage. So this developer is building these for homeowners that want to essentially have no mortgage payment. So it's a fantastic idea, but when you combine these programs, it just offers an immense savings. Now this specific builder and developer is in Windsor Essex area.

Obviously, the purchase prices, construction costs, all those things differ across the province, but I think it's a fantastic program to help you to close more deals. And and, again, combining them gives your borrowers that extra and additional savings. So I think it's absolutely fantastic, and I'm glad now you know about it. Share this with your friends. It's important.

Share it with your buyers, and send us your clients. We're here to help. Our details will be in the show notes. Looking forward to chatting with you next time.