Quick answer: If you sign an agreement to buy a newly built home in Ontario between April 1, 2026 and March 31, 2027, and you'll live in it (or rent it out long-term), you can get back the full 13% HST on homes up to $1 million. That's a maximum of $130,000. Homes from $1M to $1.5M get a flat $130,000, the rebate shrinks between $1.5M and $1.85M, and homes above $1.85M get the standard $24,000. In most cases, the builder credits it to you at closing.
For years, HST was the hidden reason new homes cost more than resale. A $900,000 new townhome carried tens of thousands of dollars in sales tax that a resale townhome next door never did. In 2026, that changed. For one year, Ontario and the federal government are removing most or all of the HST on new homes for almost every buyer, not just first-timers.
This guide explains how the rebate works, who qualifies, and the one clause in your builder agreement that decides whether the rebate saves you money or costs you money at closing.
What is the expanded Ontario HST rebate?
It's a temporary, one-year expansion of the existing HST New Housing Rebate and New Residential Rental Property Rebate. It was announced on March 25, 2026, as part of Ontario's 2026 Budget, delivered with the federal government, and its administration went live on June 29, 2026.
HST in Ontario is 13%: 5% federal plus 8% provincial. Before 2026, most buyers of new homes only got a small portion back (a maximum of $24,000 provincially). The expanded program rebates the entire 13% on homes up to $1 million.
How much is the HST rebate on a new home in Ontario?
The rebate depends on the purchase price:
| Purchase price | HST relief |
|---|---|
| Up to $1,000,000 | Full 13% HST (up to $130,000) |
| $1,000,000 – $1,500,000 | Flat $130,000 |
| $1,500,000 – $1,850,000 | Declines gradually from $130,000 to $24,000 |
| Over $1,850,000 | $24,000 (the standard provincial rebate) |
Some real-world examples using the Ontario government's own figures:
- $500,000 condo: about $65,000 in HST relief
- $700,000 townhome: about $91,000
- $1,000,000 detached home: $130,000
- $1,200,000 detached home: $130,000 (the maximum)
The sweet spot is $1 million to $1.5 million. That's where much of the new low-rise inventory in the GTA, Durham, York, Peel and Halton sits, and where buyers keep the full $130,000.
Who qualifies for the HST rebate on new construction?
Unlike the earlier first-time buyer programs, this one is open to all eligible buyers, whether it's your first home or your fifth. You generally need to meet these conditions:
- Your agreement of purchase and sale (APS) is signed between April 1, 2026 and March 31, 2027. Agreements signed before April 1, 2026 fall under the old rules.
- The home is newly built (or substantially renovated) and bought from a builder. This includes detached homes, semis, townhomes and condos. Resale homes don't qualify.
- It's your primary residence (or a close relative's), or a long-term rental property. Short-term flips and corporate buyers are excluded.
- The project meets construction deadlines. Construction must start by December 31, 2028 and be substantially complete by December 31, 2031.
Watch the construction deadlines on a pre-construction condo. They matter most for high-rise projects that are still in pre-sale and haven't broken ground. A project that stalls could push your rebate at risk. Ask your agent or the sales office for the expected construction start date in writing.
How do I claim the rebate? (Usually, you don't.)
In most pre-construction deals, you assign the rebate to the builder. At closing, your lawyer signs the rebate forms, the builder claims the money from the government, and you get the reduction directly on your statement of adjustments. You never pay the full HST up front or wait for a cheque.
If the builder doesn't credit the rebate at closing, you can usually apply to the Canada Revenue Agency yourself after closing.
The clause that matters most: "HST included, net of rebates"
This is where buyers get caught. Most builder price lists say the price includes HST. Read the fine print, though. It almost always means "includes HST, net of the rebates, which the buyer assigns to the builder."
In plain terms, the builder has already subtracted the rebate from the price you see. If it later turns out you don't qualify, you owe the builder the rebate amount on closing day. That could be as much as $130,000.
How a buyer can lose the rebate:
- Buying as an investor, but leaving the unit vacant or renting short-term instead of long-term
- Buying through a corporation
- Assigning (selling) the contract before closing
- Not moving in, or a relative not moving in, as required
On Buyprecon.ca you'll see some listings marked "Available plan prices include the enhanced HST rebate. Eligibility conditions apply." That's this clause. Before you sign, confirm with your lawyer that you meet every condition.
I'm a first-time buyer. Do I get extra?
First-time buyers also have the federal First-Time Home Buyers' (FTHB) GST/HST rebate, which became law on March 12, 2026. It refunds up to $50,000 of the federal portion of HST on new homes up to $1 million, with a partial rebate up to $1.5 million. It applies to agreements signed from March 20, 2025 through the end of 2030.
Ontario also has its own first-time buyer HST rebate. You can't rebate more tax than you actually paid, though. On homes up to $1.5 million, the expanded program already covers the maximum, so the first-time programs mainly matter for:
- Agreements signed after March 31, 2027, when the expanded program ends but the first-time rebates continue
- Agreements signed between March 20, 2025 and March 31, 2026, before the expanded program began
Ontario has said that when a first-time buyer qualifies for both, they'll get whichever relief is more generous. Your lawyer applies the correct combination at closing.
Is now a good time to buy pre-construction in Ontario?
The rebate changes the math between new and resale. On a $1.2 million new home, $130,000 in tax relief is close to 11% of the price. That's money a resale buyer doesn't get. Combined with softer GTA prices in 2026 and builders competing for buyers, this window is one of the strongest for new construction in years.
The deadline is firm, though. Your APS must be signed by March 31, 2027. Every week closer to that date, more buyers will rush the decision. Start comparing projects now so you're not choosing under pressure.
Related reading: Pre-Construction Deposits in Ontario · Pre-Construction Closing Costs in Ontario
Frequently asked questions
Does the $130,000 HST rebate apply to pre-construction condos?
Yes. Condos, townhomes, semis and detached homes all qualify if they're newly built, bought from a builder, signed between April 1, 2026 and March 31, 2027, and used as a primary residence or long-term rental.
Do I have to be a first-time home buyer?
No. The expanded rebate is open to all eligible buyers. First-time buyers have separate federal and Ontario rebates, which matter most for agreements signed outside the April 2026 to March 2027 window.
Can investors get the HST rebate on a new condo?
Yes, if the home is used as a qualifying long-term residential rental. Short-term rentals, vacant units and corporate purchases generally don't qualify.
What happens if I signed before April 1, 2026?
The old rules apply. Most buyers get a maximum provincial rebate of $24,000, though first-time buyers may qualify for the federal FTHB rebate of up to $50,000 if they signed on or after March 20, 2025.
Is the rebate paid to me or to the builder?
Usually you assign it to the builder, and it's credited against your purchase price at closing. If the builder doesn't credit it, you can apply to the CRA after closing.
What if I assign my contract before closing?
Assigning your contract usually means you won't live in the home, so you can lose eligibility and owe the rebate amount. Talk to your lawyer before listing an assignment.
About the author: Ola Otubu is a REALTOR® with Realty ONE Group Reveal, Real Estate Brokerage, and the founder of Buyprecon.ca. He represents buyers of new construction homes and condos across Ontario, from the first deposit through PDI, closing and warranty claims.
This article is general information, not legal or tax advice. Rebate rules and eligibility are set by the CRA and Government of Ontario and can change. Confirm your eligibility with a real estate lawyer before signing. Sources: Government of Ontario (ontario.ca); Canada Revenue Agency.
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