Toronto Real Estate Market: Rate Cut and HST Rebate

Toronto Real Estate Market: Rate Cut and HST Rebate

The Toronto real estate market is shifting once more. This morning, the Bank of Canada has lowered its key interest rate, while Ontario introduced a new HST rebate for first-time buyers. These two changes could make homeownership a little easier and help the GTA housing market gain momentum again.

Bank of Canada Cuts the Rate

Firstly, the Bank of Canada reduced its overnight rate by 0.25%, setting it at 2.25%. It’s the second cut this year and part of a plan to support a slowing economy.

Because of this, some homeowners will soon see smaller mortgage payments. Others who renew fixed-rate loans might get better deals. Meanwhile, lower borrowing costs can help new buyers qualify more easily.

Inflation remains close to 2%. Therefore, the Bank has room to encourage growth while keeping prices stable.

Ontario’s New HST Rebate and Toronto Real Estate

Secondly, Ontario launched a new HST rebate to help first-time buyers. This move aims to reduce upfront costs and make new homes more affordable.

Here’s how the rebate works:

• The full 8% rebate on new homes up to $1 million.

• A partial rebate for homes up to $1.5 million.

• Combined with the federal rebate, buyers could save up to $130,000.

As a result, this program could renew interest in pre-construction homes. It may also encourage builders to move forward with delayed projects, adding more housing supply to the market.

How These Changes Affect the Toronto Real Estate Market

Likewise, these updates bring cautious optimism to the Toronto real estate market. Prices are still high, yet lower rates and tax relief may boost activity.

• Buyers: More affordable financing and rebates create new opportunities.

• Sellers: Extra demand can lead to quicker sales and better prices.

• Builders: Incentives could restart stalled projects and support new construction.

However, supply remains limited, and affordability continues to challenge many buyers. Even so, these steps are a positive move toward a more balanced housing market.

Talk with the #1 Century 21 Office Worldwide

To sum it up, now is a smart time to explore your options in the Toronto real estate market. As the #1 Century 21 Office worldwide, Century 21 Atria offers expert advice to guide your next move — whether you’re buying, selling, or investing.

📞 Contact us today for a free consultation and let’s plan your next step together.