Ontario Expands HST Rebate on New Homes — Up to $130,000 in Savings for Buyers
Big news for Ontario homebuyers. Premier Doug Ford announced this morning that Ontario and the federal government are expanding the HST rebate on newly built homes — and this time, it's not just for first-time buyers.
What's Changed?
The HST rebate on new homes was previously only available to first-time homebuyers under the federal GST/HST First-Time Home Buyers Rebate. For a one-year period, Ontario is proposing to extend the offer to all buyers in the province. CP24
That's a significant shift — and the potential savings are substantial.
How Much Can You Save?
Homes valued at up to $1 million would be eligible for $130,000 in relief, equivalent to the full 13% HST. That same amount would also apply to new homes valued between $1 million and $1.5 million. CP24
A reduced rebate would be available for new homes valued between $1.5 million and $1.8 million, while new homes above $1.85 million would still qualify for $24,000 in relief under the pre-existing rebate. CP24
The province will cover the 8% provincial portion of the HST, while Ottawa will cover the federal 5% portion. CP24
Who Qualifies?
All new homes must be used as a primary residence or as a residential rental property. CP24 Here's how the timing works:
The proposed new rules would be in effect from April 1, 2026 to March 31, 2027, and homeowners would be eligible if the purchase agreement with the builder was signed between April 1, 2026 and March 31, 2027, construction of the home begins on or before December 31, 2028, and construction is substantially completed on or before December 31, 2031. CP24
A purchase would also be eligible if construction began before March 31, 2026, the purchase agreement was signed between April 1, 2026 and March 31, 2027, and construction is substantially completed on or before December 31, 2029. CP24
Why Does This Matter for the Market?
The province estimates that the expansion of the HST rebate could stimulate an additional 8,000 housing starts and support up to 21,000 jobs, providing a boost to real GDP growth of $2.7 billion. CP24 The program is estimated to cost the province $1.4 billion.
This is one of the most meaningful demand-side housing incentives Ontario has introduced in years — and its one-year window creates a real sense of urgency for buyers sitting on the fence.
One Important Caveat
The temporary expansion of the program is subject to the passage of federal legislation. CP24 That means it's not yet a done deal, but the federal-provincial alignment here is strong and the direction is clear.
What This Means If You're Buying in Markham or Unionville
For buyers considering a new build in our area, this rebate window could represent a genuinely game-changing opportunity. A $130,000 reduction in effective purchase cost on a qualifying home is not small — that's money back in your pocket, or room to stretch into a home that better fits your family.
If you're thinking about a new construction purchase and want to understand how this rebate applies to your specific situation, I'm happy to walk you through it.
📞 Reach out anytime - let's talk about what this means for your move!