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Ontario's New HST Rebate on New Builds Simplified: What Buyers Need to Know
Dated: April 6 2026
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GTA Bal Real Estate · Royal Canadian Realty · Ontario 2026
Ontario's New HST Rebate on New Builds: What Buyers Need to Know
What is the rebate?
When you buy a newly built home in Ontario, you pay 13% HST — made up of 5% federal GST and 8% provincial HST. Under this new program, Ontario is reducing or eliminating the 8% provincial portion for qualifying new builds. The federal GST rebate for first-time buyers remains a separate layer that can stack on top.
How much can you save?
Under $1M
Up to $80K
Full provincial rebate
$1M – $1.5M
$80K flat
Fixed rebate amount
$1.5M – $1.85M
Decreasing
Rebate phases down
$1.85M +
No rebate
Fully phased out
First-time buyers who also qualify for the federal GST relief can potentially receive a combined benefit of up to $130,000.
The critical window: when you must sign
The rebate only applies if your Agreement of Purchase and Sale is signed within a specific window. Outside these dates, you will not qualify — even if the home meets every other requirement.
1
Sign between April 1, 2026 – March 31, 2027 Your purchase agreement must fall within this window
2
Construction starts by December 31, 2028 Building must begin within this deadline
3
Substantially completed by December 31, 2031 The home must be largely built by this date
Who qualifies?
This is broader than most people expect. Unlike many housing incentives, this rebate is not limited to first-time buyers.
Both rebates
First-time buyers
Eligible for both federal GST relief and the provincial HST rebate on qualifying new builds
Provincial only
Repeat buyers
Can access the provincial portion of the rebate on a qualifying new build
Provincial only
Investors
Purchasing qualifying rental properties may be eligible for the provincial rebate
Check eligibility
Pre-construction buyers
New builds and pre-construction projects that meet program rules qualify
Why this matters in the GTA
In a market where carrying costs and purchase prices have pushed many buyers to the sidelines, even a partial rebate can meaningfully change the math. For a $900,000 new build, a full provincial rebate removes tens of thousands from your upfront cost. For investors, the rebate may improve cash flow projections enough to make pre-construction viable again.
Beyond individual savings, the government designed this to encourage new housing supply. The construction deadlines ensure the rebate flows toward genuine new development, not resale activity.
What to check before you sign
- Does the project's occupancy and construction timeline fit within the deadlines?
- Is your closing and ownership structure set up to qualify?
- Are you eligible for both layers (provincial + federal), or just the provincial portion?
- Has the builder confirmed the project qualifies under the program rules?
The savings can be substantial — but the rules are specific and the deadlines are strict. Not sure if a project you're looking at qualifies? Reach out and we'll walk you through it.
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