This measure is expected to be formally legislated through the 2026 Ontario Budget, scheduled for release on March 26, 2026. The federal government has agreed to cover its 5% portion of the rebate, pending federal legislation, while the province covers the remaining 8%.

The rebate is structured in tiers based on the purchase price of the new home. Here is exactly how it works:

The rebate comes with specific construction requirements that buyers must understand before signing an Agreement of Purchase and Sale (APS). Missing these deadlines could affect your eligibility.

The rebate comes with specific construction requirements that buyers must understand before signing an Agreement of Purchase and Sale (APS). Missing these deadlines could affect your eligibility.

This rebate applies exclusively to newly built homes purchased from a builder. Here is how it plays out across the three most common property types in the GTA:

New Condo Purchases

New Townhouse Purchases

New Detached Home Purchases

To understand the significance of today's announcement, it's worth looking at what existed before. The previous HST rebate was limited primarily to first-time home buyers and had narrower eligibility criteria. Today's expansion removes those restrictions and extends the benefit broadly — a policy shift that:

•  Reduces the effective cost of a new home by up to $130,000 — making new construction far more competitive versus resale

•  Opens the door for investors and repeat buyers who were previously excluded from meaningful HST relief

•  Is time-limited to one year — creating urgency and a clear window of opportunity

•  Is jointly funded by the province (8%) and the federal government (5%), reflecting coordinated policy action

•  Is expected to stimulate new home construction across Ontario, addressing the long-standing housing supply shortage

According to the CMHC Housing Market Outlook, affordability pressures remain one of the biggest barriers to homeownership in Canada. This rebate directly addresses that barrier for new builds.

The window opens April 1, 2026 — just one week from today. Here is what you should do right now:

Ready to get started? Book a free mortgage consultation with our Ontario team — we'll walk you through the rebate, your qualification options, and the best mortgage products available for your situation.

Does the rebate apply to resale homes?

No. The HST rebate expansion applies only to newly built homes purchased directly from a builder. Resale homes do not attract HST and are therefore not part of this program.

Can investors use this rebate?

Yes — this is new. Under the expanded rules, buyers purchasing a new home as a rental property are now eligible, provided all construction timelines are met. This is a significant departure from the previous rules.

What if my home is priced between $1.5M and $1.85M?

You will still receive a proportional rebate — the savings decrease as the price approaches $1.85M. Above $1.85M, the standard $24,000 provincial rebate applies.

Is this guaranteed to pass as law?

The measure is expected to be included in the 2026 Ontario Budget on March 26, 2026. The provincial 8% portion is being moved forward by the Ontario government. The federal 5% portion requires separate federal legislation, which has been agreed to in principle but not yet enacted. Buyers should monitor both developments closely.

What is an Agreement of Purchase and Sale (APS) date?

The APS is the legally binding contract you sign with a builder to purchase a new home. The date this document is executed is what determines eligibility — it must fall between April 1, 2026 and March 31, 2027 to qualify for the expanded rebate.

How do I find a qualified new home builder in the GTA?

All new home builders in Ontario are registered with Tarion Warranty Corporation, which provides consumer protection for new home purchases. Always verify your builder's registration before signing.

Today's announcement is one of the most impactful housing policy moves Ontario has seen in years. For buyers who have been sitting on the fence — weighing a condo, townhouse, or detached home — this rebate dramatically shifts the financial calculus in favour of buying new, and doing so within the next 12 months.

The numbers speak for themselves: up to $130,000 saved, for all buyers, across all property types, in the most expensive housing market in the country. That's not an opportunity to take lightly.

Stay informed, act strategically, and make sure you have the right mortgage professional guiding your decisions.

This article is intended for informational purposes only and does not constitute financial, legal, or tax advice. The HST rebate details described reflect the announcement made by Premier Doug Ford on March 25, 2026, and are subject to formal legislation through the 2026 Ontario Budget and corresponding federal legislation. Readers should verify all eligibility details at ontario.ca and consult a licensed mortgage agent, real estate lawyer, or tax professional before making any home purchase decisions.