Removing PST for first-time home buyers on new homes up to $1 million is a step toward housing affordability, the Sudbury & District Home Builders’ Association said in a recent news release.
“This announcement is a necessary step in recognizing an important component of Ontario’s housing challenges,” the association said in a media release via a shared statement on behalf of the organization as a whole.
“For too long, families have not been able to purchase homes, as the prices required for builders to cover their costs have been unaffordable to the average consumer.”
With government-imposed fees and taxes currently representing approximately 36 per cent of a new home’s costs, they cited this as addressing “among the largest barriers to homeownership and new construction in Ontario.”
The move will save first-time new home buyers with up to $80,000 in PST relief, which increases to $130,000 when combined with the proposed federal rebate.
In the wake of this gain, the local association is echoing the Ontario Home Builders Associations call to extend the eight-per-cent PST removal on all new home purchases.
“This announcement is a move in the right direction and a good start,” Sudbury & District Home Builders’ Association executive officer Morgan Rouleau said in the media release.
“However, the affordability crisis is not limited to first-time buyers. Removing the PST for all new homes would strengthen housing supply, restore builder confidence, and support thousands of jobs across Ontario’s construction sector.”