Ontario's HST Rebate for New Homes: Save Up to $130,000
Ontario first-time buyer HST rebate comes into effect April 01, 2026. Here is a complete breakdown of all the rebate including who qualifies, how much can you save, how to get the rebate and much more!
- Up to $130,000 in HST eliminated on newly built homes in Ontario
- Open to all buyers — first-time, move-up, downsizing, and investors
- One-year window only: purchase agreement must be signed April 1, 2026 – March 31, 2027
- New construction only — resale homes are not affected
- First-time buyers can stack this with the federal GST rebate, FHSA, and Home Buyers' Plan
What Is This Rebate?
On March 25, 2026, the Ontario government announced a temporary expansion of its new home HST rebate — in partnership with the federal government.
The result: for newly built homes purchased during a one-year window, the full 13% HST is eliminated. That covers both the 8% provincial portion (Ontario) and the 5% federal portion (cost-shared with Ottawa).
Before this expansion, the existing rebate maxed out at $24,000 for most buyers. This program increases that ceiling to $130,000 — more than five times higher.
How Much Can You Save?
The rebate amount depends on the purchase price. Here is how it breaks down:
| Home Purchase Price | Max Rebate | Notes |
|---|---|---|
| Up to $1,000,000 | Up to $130,000 | Full 13% HST eliminated |
| $1,000,000 – $1,500,000 | $130,000 (flat max) | Maximum held — key range for GTA buyers |
| $1,500,000 – $1,850,000 | Sliding scale | Decreases from $130,000 down to $24,000 |
| Above $1,850,000 | $24,000 | Pre-existing rebate applies |
Real GTA price examples:
- $700,000 new home → ~$91,000 rebate
- $1,200,000 new home → $130,000 rebate (peak savings)
- $1,700,000 new home → ~$69,500 rebate (sliding scale)
- $1,900,000 new home → $24,000 rebate (pre-existing cap applies)
Who Is Eligible?
This is the most important change from all previous programs: you do not need to be a first-time buyer.
✅ Eligible Buyers
- First-time home buyers
- Move-up buyers
- Downsizers
- Real estate investors
- Rental property purchasers
❌ Not Eligible
- Resale home purchases
- Agreements signed outside the window
- Vacant land only
- Non-residents / non-PRs
Property requirements:
- Newly built or substantially renovated
- Used as a primary residence or residential rental property
- Located in Ontario
- Buyer must be a Canadian citizen or permanent resident
Key Dates & Deadlines
These dates are non-negotiable. Missing any one of them could void the entire rebate.
How Do You Claim It?
In most cases, your builder handles it at closing.
- The builder credits the rebate directly on your statement of adjustments
- You close with significantly less cash required upfront
- The builder submits the claim to the CRA on your behalf
Some situations — such as transactions that closed before Bill C-4 received Royal Assent on March 12, 2026 — require you to apply to the CRA directly. Your real estate lawyer will confirm the right approach for your situation.
Three questions to ask your builder before signing
- "Will you credit the HST rebate on my statement of adjustments at closing?"
- "What are your guaranteed construction start and completion dates?"
- "Has the base price been adjusted to account for the rebate?"
Ontario Rebate vs. Federal GST Rebate
These are two separate programs. First-time buyers can stack them together. Everyone else relies primarily on the Ontario expansion during this one-year window.
| Feature | Ontario HST Rebate | Federal GST Rebate (Bill C-4) |
|---|---|---|
| Who qualifies | All buyers | First-time buyers only |
| Tax eliminated | Full 13% HST | 5% federal GST only |
| Maximum savings | $130,000 | $50,000 |
| Agreement window | Apr 1, 2026 – Mar 31, 2027 | Mar 20, 2025 – Dec 31, 2030 |
| Full rebate up to | $1,500,000 | $1,000,000 |
| Phases out at | $1,850,000 | $1,500,000 |
| Rental properties | ✅ Eligible | ❌ Not eligible |
| Stack together? | Yes — first-time buyers can combine both programs | |
What This Means for You
First-Time & Move-Up Buyers
For the first time, existing homeowners are included in a rebate of this size. The $130,000 saving on a new home directly reduces the cash you need at closing — it does not change your mortgage qualifying rate or monthly payments, but it changes the equation on day one.
First-time buyers get an additional advantage: stacking the Ontario rebate with the federal program, FHSA, and Home Buyers' Plan simultaneously is now possible.
Investors
The expanded rebate explicitly covers residential rental properties. A $1,200,000 new rental unit with a $130,000 rebate credited at closing is a meaningfully different acquisition than the same unit purchased at full tax cost.
The rental completion deadline is December 31, 2029 — tighter than primary residences. Verify construction timelines with your builder and lawyer before signing.
Builders & Developers
The GTA has significant unsold pre-construction inventory — particularly condos and townhomes in the $1M–$1.5M range. This rebate changes the buyer math. Builders can credit the full amount at closing, reducing cash required from buyers and clearing stalled inventory.
Watch for this: Some builders may raise base prices to absorb a portion of the $130,000 rebate. The price on the page is not always the net cost to you.
Resale Home Sellers
As buyers shift attention toward new construction, some resale segments — particularly condos and townhomes — may see softer buyer traffic in 2026.
If you are planning to sell, pricing competitively relative to comparable new builds in your area carries more weight now than it did last year. The gap between resale and new build just got wider — in the buyer's mind.
The Honest Take
Here is what the program genuinely delivers — and where to be careful.
✅ Genuine Benefits
- Largest single tax relief on new homes in Canadian history
- Covers rental properties — directly targets supply shortage
- Builder credits it at closing, reducing cash needed on day one
- First-time buyers can stack three programs simultaneously
- Flat maximum maintained to $1.5M — well matched to GTA pricing
⚠ Real Risks to Know
- Base price inflation. Builders in high-demand areas may raise prices to absorb part of the rebate. Your negotiated price is what actually matters.
- Monthly costs unchanged. This reduces closing costs, not carrying costs. You still qualify on income and current mortgage rates.
- Construction delay risk. Missing the December 31, 2031 completion deadline could void the rebate and create an unexpected tax bill at closing.
- Subject to federal enactment. The federal 5% cost-sharing requires Ottawa's regulatory changes. Verify status at Ontario.ca before signing.
Frequently Asked Questions
Disclaimer: All figures are subject to federal regulatory enactment. This content is for informational purposes only and does not constitute legal or financial advice. Always consult a licensed real estate lawyer and a CRA-registered accountant before making any purchasing decision. Full eligibility criteria will be published on Ontario.ca following the 2026 Budget release.
📊 My Thoughts
I work with buyers across Vaughan and the GTA every day.
The biggest barrier I see isn’t always the price but it’s buyers not knowing what tools are available or how to use them together.
The First-Time Buyers HST & GST rebate , the FHSA, the HBP — used correctly, they change the picture significantly for first-time buyers in this market.
If you want to understand your situation
- what you qualify for
- what a new build looks like right now in Vaughan and the GTA
- whether your specific purchase is eligible
I’m happy to talk it through. No pressure, no pitch.
My expericned mortgage professional network is also here to support you with
- discussing and explaining all your financing options
- reviewing your current mortgage and refinancing options
- demonstrating how to maximize your tax free gains in TSFA, FHSA and HBP
- how to combine the First-Time Buyers HST & GST rebate rebate, the FHSA, the HBP
CLICK HERE and BOOK a free consultation with the mortgage team
Read the March 2026 Market udpate > Vaughan Real Estate Market Update for March 2026
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