Politics · Canada · 2 hrs ago
Canada’s home-building industry calls for lasting tax changes
Mattamy Homes CEO Brad Carr is urging lasting changes to Canada’s housing taxes to make homes more affordable and support construction.
An Ontario and federal HST rebate for new homes helped bring buyers back to low-rise sales centres, and second-quarter sales in that sector rose 130 per cent year over year.
The current enhanced rebate is due to end in March 2027, after which an old rebate threshold would apply unless the policy changes.
That threshold has not been updated since the GST rebate began in 1991, even though home prices and housing markets have changed.
Carr proposes removing HST on the first $1-million of a new home’s price and reviewing the threshold every two years.
He also proposes letting homeowners deduct mortgage interest from taxable income, particularly to help young and first-time buyers.
The proposals aim to lower ownership costs and encourage more home building, but the sources do not say whether governments will adopt them.
Canada’s home-building industry is calling for lasting tax changes to lower construction costs and improve housing affordability.
Brad Carr, chief executive of Mattamy Homes, says the temporary Enhanced HST rebate should be replaced with a permanent policy.
He proposes eliminating HST on the first $1-million of a new home’s cost and reviewing the threshold every two years.
Carr also proposes allowing homeowners to deduct mortgage interest payments from taxable income.
The Enhanced HST rebate is due to end in March 2027, while national home sales fell 7 per cent year over year in August.
- Who
- Canada’s home-building industry, represented in the article by Mattamy Homes chief executive Brad Carr.
- What
- The industry is calling for lasting tax changes, including a permanent HST rebate threshold and a mortgage-interest tax deduction.
- When
- The article was published on October 18, 2026. The Enhanced HST rebate is due to end in March 2027.
- Where
- Canada. The current HST rebate applies to new homes in Ontario.
- Why
- The industry says long-term reforms are needed to improve affordability, reduce building costs and increase housing supply.
This story does not have two clearly opposing sides.
The housing sales tax rebate was introduced alongside the GST.
The rebate policy was updated when the HST followed.
Ontario and the federal government announced an HST rebate for all new homes in Ontario.
Sector-wide low-rise sales in Ontario increased 130 per cent year over year.
National home sales fell 7 per cent year over year.
The Enhanced HST rebate is due to end.
- Proposed HST exemption
- First $1-million of a new home’s cost
- Proposed review
- Every two years
- Rebate expiry
- March 2027
- August home sales
- Down 7 per cent year over year
- Second-quarter low-rise sales
- Up 130 per cent year over year in Ontario