Receive up to $130K rebate for new homes valued up to $1M for one year
Ontario is making a bold move to stimulate new housing starts. As part of the 2026 budget, the province is removing the full 13% HST on new homes, offering buyers up to $130,000 in savings.
What Is the New HST Rebate?
For a limited one-year window between April 1, 2026 to March 31, 2027, eligible buyers of new homes in Ontario may receive:
| Home Value | Estimated Rebate |
| Up to $1M | Full 13% Rebate (Up to $130,000) |
| $1M – $1.85M | Scaled / Reduced Rebate |
| Above $1.85M | Minimum $24,000 |
While Premier Doug Ford wanted the discount to run for a 3-year period, the government had concerns that buyers would potentially wait on the sidelines, effectively watering down the policy. Finance Minister Peter Bethlenfalvy made it clear that HST rebate won’t be extended: ‘This is a one-year sale’.
Who Qualifies?
To be eligible, buyers must:
- The Contract: Purchase agreements must be signed between April 1, 2026, and March 31, 2027.
- Primary Residences: Construction must begin by Dec 31, 2028, and finish by Dec 31, 2031.
- Rental Properties: Construction must be completed by Dec 31, 2029.
What is the Goal for Ontario?
The goal is simple: stimulate new construction and boost economic growth. It is a bit different from the federal rebate that is aimed at helping first-time home buyers, Ontario’s goal is solely for spurring future home construction.
The province estimates this could:
- Generate $2.2 billion in tax relief
- Add 8,000 new housing starts
- Support 21,000 jobs
- Increase GDP by $2.7 billion
Want to Know If This Applies to You?
This $130,000 savings is a game-changer, but the timelines are strict. Whether you are looking for a primary residence or a strategic rental investment, the ‘one-year sale’ requires a proactive approach.
Opportunity or Just Optics?
But before you get too excited, it’s important to understand how this actually impacts you as a buyer.
The “Hidden” HST Reality
When you buy a new home, HST is already built into the purchase price. There is no separate line for “tax” and “rebate”—it’s all one number. So even though the government reduced the tax, builders are not required to lower their prices. Whether you actually benefit depends entirely on whether the builder adjusts pricing to reflect today’s market.
Builders and Institutional Investors Benefit the Most
Right now, many builders are sitting on large amounts of unsold inventory, particularly in the condo segment. Carrying these units is expensive.
This rebate gives them more flexibility in two key ways:
Bulk sales to investors: Institutional buyers can purchase units at deeper discounts, helping builders move inventory faster.
Renting unsold units: Previously, renting triggered HST through a “deemed sale.” Now, builders can rent units more easily, generate income, and wait for prices to recover.
In both cases, the policy helps reduce pressure on builders, but does not necessarily improve affordability for end-users.
Pre-Construction: Lower Prices, But Higher Risk
Where buyers may see some impact is in pre-construction pricing, especially since new builds have been significantly more expensive than resale. The rebate could help narrow that gap.
But it does not remove the risks:
Completion risk: Projects can be delayed or cancelled. If that happens, you get your deposit back—but you lose time and opportunity.
Appraisal gap risk: If you buy at $1.2M and the property is worth $1.0M at closing, you are responsible for that $200,000 difference.
The Bottom Line
Whether you benefit depends on pricing, timing, and the specific project. I can help you identify which upcoming projects in the GTA qualify and if this window aligns with your long-term goals.
Let’s look at the numbers together. Before you make a move, make sure the numbers work based on today’s market, not just the promise of a tax break.
Book your appointment and discover where the real opportunities are.
📱 Phone: 647-504-0690
📧 Email: steven@mistersauga.ca
Your Trusted Partner in the GTA Real Estate Journey