# Are HST and DC rebates enough?

By [Brandon Donnelly](https://brandondonnelly.com) · 2026-04-16

housing, toronto, hst-rebate, dc-reduction, housing-supply, real-estate, development

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In addition to the recently proposed [HST rebate for new homes](https://brandondonnelly.com/how-ontarios-new-hst-rebate-changes-new-home-pricing), the federal government and the province of Ontario announced that they will be providing funding to help municipalities reduce their development charges by up to 50% over the next three years. And according to some [estimates](https://www.theglobeandmail.com/investing/personal-finance/article-housing-home-costs-ontario-tax-development/), these two measures will _temporarily_ cut the cost of building a new home in Ontario by something in the range of 15-20%.

From what I have seen, most, if not all, of these savings are now going to the consumer. As Mike Moffatt points out in [this recent _Globe and Mail_ article](https://www.theglobeandmail.com/investing/personal-finance/article-housing-home-costs-ontario-tax-development/), developers are passing them along because of competition, because they need to compete with lower-priced resale homes, and because, frankly, it's the only way to try and unstick this market.

What is not so clear, though, is whether this is enough. Moffatt argues that "now that new homes can be sold at prices that make them viable to build, more homes will be built, adding further downward pressure on resale prices." This is certainly one of the policy goals — to get more developers building again. But I don't think we're there quite yet. I guess we'll find out soon enough.

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_Cover photo by_ [_Jaipreet Singh_](https://unsplash.com/@jpreet?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) _on_ [_Unsplash_](https://unsplash.com/photos/a-skyscraper-shows-damage-along-its-facade-W6RSTgY5SWQ?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText)

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/are-hst-and-dc-rebates-enough)*