If you've been thinking about buying a new home in Ontario, the province just announced something that could save you tens of thousands of dollars — and this time, it applies to everyone, not just first-time buyers.
I'm going to walk you through everything you need to know about Ontario's newly expanded HST rebate on new homes — what it is, who qualifies, how much you could save, and how long this window is open.
The Ontario government has been working to tackle the housing crisis for a few years now. Back in 2023, they introduced an HST rebate specifically for purpose-built rental housing — and it worked. Rental housing starts climbed from around 18,000 to nearly 24,000 by 2025.
Then, just a few months ago in the fall of 2025, they introduced an HST break for first-time home buyers on homes under a million dollars. But that program didn't move the needle the way they hoped. Sales were sluggish, and new construction projections for 2026 were falling — partly because of economic uncertainty and the impact of U.S. tariffs making everything more expensive.
So the province went back to the drawing board. And what they came up with is much bigger — a temporary but sweeping rebate that removes the HST for all buyers of new homes across Ontario.
What Is the Rebate?
Here's the core of the program. Ontario, working together with the federal government, is proposing to eliminate the full 13% HST on qualifying new homes. That means both the provincial 8% portion and the federal 5% portion would be rebated back to buyers — subject to federal regulatory approval.
And the rebates are structured based on the purchase price of the home:
Homes up to $1 million: You could receive a rebate of up to $130,000 — the full 13% HST. This is the maximum amount available and applies to the broadest range of buyers.
Homes between $1 million and $1.5 million: The same maximum rebate of $130,000 is maintained. This was specifically designed to reflect the reality of housing costs in many Ontario communities where $1 million doesn't buy nearly as much as it used to.
Homes between $1.5 million and $1.85 million: A reduced, sliding-scale rebate applies. So you'll still get meaningful savings, just not the full amount.
Homes above $1.85 million: These will qualify for $24,000 in HST relief under the pre-existing rebate rules — so there's still some benefit, just not the expanded amount.
Who Qualifies?
Now, who is actually eligible? This is where it's important to pay close attention to the dates.
The program is open to any buyer — not just first-timers — as long as the home will be used as either a primary residence or as a residential rental property.
The fact that this applies to all buyers and not just first timers is important. If a person bought a starter home a few years ago and now needs to move up to a bigger home because of family changes, this program will help them do that which will in turn free up their starter home for the next first time buyer.
There are two main eligibility scenarios:
Scenario 1 — Primary Residence Purchase: The purchase agreement with your builder must be signed between April 1, 2026 and March 31, 2027. Construction of the home must begin on or before December 31, 2028, and construction must be substantially completed by December 31, 2031.
Scenario 2 — Rental Property (Construction Already Underway): If a home was already under construction before March 31, 2026 and will be used as a rental, the purchase agreement still needs to be signed between April 1, 2026 and March 31, 2027 — and construction must be substantially completed by December 31, 2029.
How Does This Compare to the Old Rules?
The government included a chart in their briefing document that really puts this into perspective visually, and I want to walk you through it.
Under the old rules, the rebate was quite limited. For most homes above a certain price threshold, buyers were only getting around $24,000 back — and nothing for more expensive homes.
Under the new program, the jump is dramatic. A $700,000 home now qualifies for a rebate of approximately $91,000. A $1.2 million home gets the full $130,000. A $1.7 million home still gets back roughly $69,500.
That is a significant amount of money back in buyers' pockets — money that could go toward your down payment, mortgage payments, renovations, or just your financial security.
How Long Does This Last? Could It Be Extended?
Right now, the program is designed to run for one year — from April 1, 2026 to March 31, 2027. That's the window in which your purchase agreement needs to be signed to qualify.
The one-year timeframe was actually a deliberate choice. According to reporting from Global News, the province debated a longer three-year window but was concerned that buyers would simply wait on the sidelines, taking away the urgency that makes this kind of stimulus work. A one-year deadline creates immediate demand.
That said, the government hasn't closed the door on extending it. Premier Ford himself suggested people should wait to see how things unfold. And the province's own projections suggest the program could stimulate an additional 8,000 housing starts and support up to 21,000 jobs, boosting Ontario's real GDP by approximately $2.7 billion. If those numbers come true, you can bet there will be serious conversation about extending the program beyond March 2027.
So while it's a one-year program for now, watch this space.
A couple of things to keep in mind:
First, this program is a proposal that requires federal regulatory changes to fully take effect. The federal government has agreed in principle to cost-share with Ontario, but the legislation still needs to pass.
Second, the HST and its rebates are administered by the Canada Revenue Agency — so the actual rebate process goes through the CRA, not the province directly. Talk to your builder and your accountant about how to claim it.
And third, the province has said municipalities should also be doing their part by reducing development charges — fees that can add hundreds of thousands of dollars to the price of new homes. So this provincial rebate is one piece of a larger affordability puzzle.
Bottom line: if you've been sitting on the fence about buying a new home in Ontario, this is a significant incentive to act. Whether you're a first-time buyer or someone looking to move up, upsize, or invest in a rental property — the savings under this program are real and substantial.
The window opens April 1st, 2026 and runs for one year. So the clock is already ticking.
As always, I'd strongly encourage you to speak with a qualified real estate agent, mortgage broker, or tax professional to understand how this applies to your specific situation.
