OREA praised Ontario’s housing measures – but one extension could determine who truly benefits
The Ontario Real Estate Association (OREA) has welcomed Ontario’s 2026 Fall Economic Statement, tabled by Finance Minister Peter Bethlenfalvy on October 29. But the association is pressing the Ford government to extend its new-home harmonised sales tax (HST) relief beyond March 2027, warning the current deadline limits how many buyers can benefit.
Acting Chief Executive Officer Diane J. Brisebois, speaking for OREA’s nearly 100,000 REALTOR Members across the province, credited the Ford government for advancing both the $8.8-billion Canada-Ontario Partnership to Build and temporary HST relief on new homes valued up to $1 million, two measures OREA has long advocated for.
“These types of bold actions, including their promise to continue funding and supporting municipalities that already do not levy development charges, will have a positive effect within many parts of our economy,” Brisebois said.
“It will help expand critical infrastructure, enable more housing supply to hit the market, lower the cost of homes, and create good-paying jobs.”
What Ontario’s 2026 fall economic statement delivered
Tabled against a projected $16.9-billion deficit, up from $13.8 billion in the March 2026 budget, the statement reaffirmed several key housing and economic measures.
Chief among them for the mortgage industry: the 10-year, $8.8-billion Canada-Ontario Partnership to Build, designed to fund housing-enabling infrastructure and reduce municipal development charges, and temporary HST relief on new homes valued up to $1 million, providing up to $130,000 in savings per eligible transaction.
The statement also confirmed an $8.7-billion Canada-Ontario action plan to shield Ontario’s industrial base from ongoing US tariff pressures.
Statistics Canada reported no growth in August GDP and an estimated decline in September, suggesting third-quarter growth may fall short of the Bank of Canada’s expectations following its latest interest rate increase. https://t.co/CCruoYeDlc
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 30, 2026
Development charges: OREA’s core demand
Canada Mortgage and Housing Corporation (CMHC) data on how soaring development charges are reshaping Canada’s housing costs shows per-unit levies for a two-bedroom apartment ranging from approximately $39,600 in Ottawa to $121,500 in Markham, representing between 8% and 16% of new condo prices in parts of Ontario.
Kim Fairley, president of OREA, previously said the package delivers meaningful relief even for buyers well beyond Toronto.
“We’re talking homes up to $130,000 in a price difference,” Fairley said.
“That’s a big deal. Even for me up in Sault Ste. Marie — our new homes average between $600,000 and $700,000. Even for that spectrum, that’s a big difference for people up in the northern areas to have that swing into their favour when it comes to being able to buy that house.”
Brokers weigh in on ground-level impact
Despite OREA’s positive reception, concerns remain that development charge reform may fall short without coordinated municipal follow-through.
Matthew O’Neil of Connolly Capital in Toronto was candid about the pricing gap that continues to face first-time condo buyers.
“The problem with pre-con pricing is that even after this new rebate, it’s still priced way higher than resale,” O’Neil previously told Canadian Mortgage Professional.
“If you’re a first-time buyer and you want to buy a condo downtown, why would you buy preconstruction? It makes no sense. You’re looking at $1,300, $1,400, $1,500 a square foot — but you can go buy a resale condo for under $1,000 a square foot.”
OREA has specifically called for the HST rebate deadline to be pushed past March 31, 2027, to allow more families to access the measure.
Micky Khaneka of MKG Mortgages in Toronto told Canadian Mortgage Professional — amid ongoing questions around Ontario’s HST New Housing Rebate and how relief is applied at the point of sale — that the initiative still sends a clear market signal.
“I definitely think it’s a signal that the government’s listening and they’re really trying to reprioritize this because taking that out helps,” Khaneka said.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
