Buying a new home in Ontario just became a lot more affordable. As of April 1, 2026, the provincial government has introduced a massive tax break that could put tens of thousands of dollars back into your bank account. If you’ve been sitting on the sidelines in Richmond Hill or Oakville, waiting for a sign to jump into the market, this is it.
Table of Contents
- How the Ontario HST Rebate Works
- The Savings Breakdown: Before vs. After
- Who Qualifies for the Rebate?
- The Federal GST Rebate Connection
- Financing Your New Build in 2026
- Frequently Asked Questions
Key Takeaways
- Full Tax Relief: The 13% HST is eliminated for eligible new homes under $1 million.
- Time Sensitive: You must sign your purchase agreement between April 1, 2026, and March 31, 2027.
- Broad Eligibility: This applies to detached homes, condos, and townhouses, not just for first-time buyers.
- Construction Deadlines: Shovels must be in the ground by the end of 2028.
How the Ontario HST Rebate Works
Premier Doug Ford recently announced this measure to kickstart the province’s construction sector. The goal is to trigger roughly 8,000 new housing starts that were previously stalled due to high costs. For you, the buyer, this means the provincial portion of the HST is essentially gone for a limited time. This isn’t a small discount. It is a fundamental change in how much house you can afford in cities like Mississauga or Markham.
You don’t need to be a first-time buyer to get this. Whether you’re looking for a primary residence or a qualifying rental property, the savings apply. But you have to act fast. The window for signing a qualifying agreement is only one year long. If you want to save money on your next move, understanding these dates is vital.
The Savings Breakdown: Before vs. After
To see why this is a big deal, look at the math. On a million-dollar home, the 13% HST adds a staggering $130,000 to the price tag. Under the new Ontario HST rebate rules, that cost disappears for homes priced under the $1 million mark. For homes valued up to $1.85 million, you still get partial relief, though the savings scale down as the price goes up.
| Purchase Price | HST Before Rebate (13%) | New HST Cost (Approx.) | Total Savings |
|---|---|---|---|
| $800,000 | $104,000 | $0 | $104,000 |
| $1,000,000 | $130,000 | $0 | $130,000 |
| $1,500,000 | $195,000 | Partial | Significant Relief |
And remember, these savings are on top of any other incentives you might find. In a market where the average resale price in Ontario was recently reported at $811,868 by CREA, being able to buy a brand-new home without the tax sting is a massive advantage.
Who Qualifies for the Ontario HST Rebate?
The rules are fairly broad, but the deadlines are strict. You can buy a detached home, a semi, a condo, or even a row house in places like Ajax or Burlington. The rebate isn’t just for people moving in, investors building rental stock can also qualify, provided the units aren’t used for short-term rentals like Airbnb.
Construction must begin by December 31, 2028. The home also needs to be substantially finished by the end of 2031. If you’re worried about your credit history affecting your ability to grab one of these new builds, we offer bad credit mortgage options to help you get back on track. We’ve been helping people find their way home since 1988, so we’ve seen every type of market shift imaginable.
The Federal GST Rebate Connection
Don’t forget about the federal side of the coin. As of March 12, 2026, eligible first-time buyers can also receive a full rebate of the GST on new-build homes priced up to $1 million. If the home is between $1 million and $1.5 million, you can still get a partial rebate of up to $50,000. This federal program uses a four-year look-back rule to determine if you’re a first-time buyer.
When you stack the federal GST rebate with the new Ontario HST rebate, the total tax savings are life-changing. It makes the dream of owning a new home in Toronto or Vaughan much more realistic. But you’ll want to make sure your financing is lined up perfectly to take advantage of these limits.
Financing Your New Build in 2026
With the Bank of Canada recently maintaining the overnight rate at 2.25% in March 2026, borrowing costs have stabilized compared to previous years. This stability, combined with new mortgage rules, gives you more breathing room. For instance, the insured mortgage cap was raised to $1.5 million back in late 2024. This means you can buy a home up to that price with less than a 20% down payment.
And if you’re buying a new construction home, you can now access a 30-year amortization period. This was expanded in December 2024 for all new builds, regardless of whether you’re a first-time buyer. A longer amortization means lower monthly payments, which helps you manage your cash flow while waiting for your home to be built in Hamilton or Milton. We offer a full range of mortgage services to help you figure out which path is best for your family.
But keep the stress test in mind. You still need to qualify at the greater of your contract rate plus 2.0% or 5.25%. Even with the tax rebates, lenders will look closely at your debt-to-income ratios. Our team in locations across Ontario can help you run the numbers before you sign that purchase agreement.
Final Thoughts
The Ontario HST rebate is a rare opportunity to bypass one of the biggest closing costs in real estate. Whether you’re looking at a condo in Oshawa or a detached home in Whitby, the potential to save $130,000 is too good to ignore. We’ve been in business since 1988 and have relationships with over 40 lenders. We don’t just find you a rate and disappear. We stay with you through the whole process, from the first deposit to the day you get your keys.
Got questions? Contact us today or call 905-455-5005. No pressure, no obligation.
Frequently Asked Questions
Does the Ontario HST rebate apply to resale homes?
No, this specific rebate is only for new construction or substantially renovated homes. Resale homes do not have HST applied to the purchase price, so they don’t require this type of tax relief. It is designed specifically to encourage new housing starts across the province.
Can I get the rebate if I am an investor?
Yes, investors can qualify for the rebate on new rental properties. However, you must ensure the property is not used for short-term rentals. The goal of the program is to increase the long-term housing supply for Ontario residents.
What is the maximum home price for the full rebate?
The full 13% HST elimination applies to homes priced under $1 million. For homes priced between $1 million and $1.85 million, there is partial relief available. If you’re buying above $1.85 million, you likely won’t see these specific provincial savings.
Can I use a 30-year amortization for a new build?
Yes, as of December 15, 2024, all buyers of newly constructed homes are eligible for a 30-year amortization on insured mortgages. This helps lower your monthly mortgage payments, though it does come with a small insurance premium surcharge.
When does the Ontario HST rebate program end?
The current program requires you to sign a purchase agreement by March 31, 2027. Construction must then start by the end of 2028. If you miss these windows, you may not be eligible for the six-figure savings currently being offered.
About the Author: Neil Drepaul
Neil Drepaul is a Co-Owner and Mortgage Broker at Canadian Mortgage Services. With over 13 years of experience in the Canadian lending industry, Neil brings a strong entrepreneurial spirit to every client interaction. He specializes in helping homeowners and buyers find mortgage solutions that fit their real-life goals, not just their paperwork. His approach is straightforward: serve others first, and success follows.
