What is the HST Rebate for New Homes?

Let’s Begin.

Ontario is taking a major step towards making homeownership more attainable, especially for buyers looking at pre-construction. As part of the 2026 budget, the government is proposing to eliminate the full 13% HST on new homes.

What this means:

• Significant upfront savings for ALL eligible buyers (not just first-time home buyers)

• Lower overall purchase costs on new homes

• More opportunities to enter the market with less financial pressure

Here’s the breakdown.

Limited-Time Opportunity:

• Applies to purchase agreements signed between April 1, 2026 – March 31, 2027

• Must be used as a primary residence or residential rental property

• New homes valued up to $1 million, the government would provide up to $130,000 in relief (full 13% HST)

• New homes valued between $1 million - 1.5 million, the $130,000 maximum rebate would be maintained

• New homes valued between $1.5 million - $1.85 million, a reduced rebate would be available

• New homes above $1.85 million would qualify for $24,000 in HST relief under the pre-existing rebate

Eligibility Period.

Primary Place of Residence

• 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

• Construction is substantially completed on or before December 31, 2031

Residential Rental Property

• The purchase agreement with the builder was signed between April 1, 2026 and March 31, 2027

• Construction began before March 31, 2026

• Construction is substantially completed on or before December 31, 2029

Next Steps.

For buyers: This creates a window of opportunity to take advantage of, especially if you’ve been considering pre-construction or getting into the market. With incentives like this, timing and strategy will matter more than ever.

Feel free to reach out if you want to learn more about how this can benefit you and how it applies to your specific situation.