Ontario Premier Doug Ford says he never thought a signature affordability policy his government introduced last fall would be successful, as he looks for ways to restart the housing industry.
As part of its Fall Economic Statement, the Ford government announced it had earmarked $470 million to give a harmonized sales tax break to first-time homebuyers purchasing new properties.
The discount was calculated to be up to roughly $80,000 on homes valued at under $1 million.
Only a few months after introducing the policy, however, the premier says the policy appears to have failed —something he said he had warned would happen.
“I have always been an advocate of getting rid of the HST for everyone,” he said at an unrelated event on Wednesday.
“We did it for first-time homebuyers, but obviously that didn’t move the needle, which I predicted it wouldn’t move the needle. Let’s open it up to anyone who wants to buy a new home.”
The comments mark the latest oscillation in position from the premier, who has pinged between looking to lift the HST on all new homes and accepting advice from his finance minister that the province cannot afford the measure.
Back in November, Ford gently chided the finance minister’s policy, suggesting the policy had been too narrow.
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“Why don’t we give it to everyone, not just first-time homebuyers, anyone who buys a new home?” Ford said. “We have massive inventory out there, as you all know, and zero plus zero equals zero.”
Ford, who raised the issue with the prime minister during a First Ministers’ Meeting call, argued the policy could also help drive up the economy as the country feels the weight of the trade war with the United States.
“If we allow everyone to buy a new home, look at the economy, new fridges, new stoves, new microwaves, new televisions, new carpets, new couches, new beds, new everything,” Ford said. “That’s my argument, and if we do that, then we’ll be able to move forward.”
Development industry sources told Global News the government had indicated to them that waiving tax for all new homes could cost the treasury $2 billion, substantially more than the $470 million for limiting it to first-time homebuyers.
Still, on Wednesday, Ford suggested massive changes were needed to deal with the housing crisis.
“Right now, we’re seeing two massive infernos,” he said. “One inferno is the auto sector, and the other inferno is the construction sector. Let’s get rid of the (development charges), run your municipalities properly and make sure that we get rid of the HST — the federal government needs to follow us.”
The premier’s comments came as new data shows housing starts in Ontario are at their worst ever level since Ford won an election promising to build 1.5 million homes by 2031.
The slump in housing starts – 62,561 in 2025 – came in a year the province was targeting 150,000 new housing starts.
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