The HST Rebate on New Homes in Ontario
What It Is, Who Qualifies, and What You Need to Know in 2026

If you've been thinking about buying a brand-new home in Ontario, you've probably heard the words "HST rebate" thrown around a lot lately. And for good reason. As of April 2026, there's a major new program that could save you up to $130,000. That's not a typo.

But with all the headlines and hype, it's easy to get confused. So let's break it down in plain language.

What Is the HST Rebate?

When you buy a brand-new home in Ontario, you pay 13% HST on top of the purchase price. That's a 5% federal tax (GST) plus an 8% provincial tax. On a $750,000 home, that's $97,500 in tax. That's a lot.

The HST rebate is money the government gives back to you to help cover that cost. Various rebate programs have existed for years to soften the blow. But the 2026 program is the biggest change in Ontario's history.

Here's the big news: In March 2026, the Ontario and federal governments announced a temporary program to remove the full 13% HST on new homes for one year. This is the biggest change to housing tax rules in Ontario's history.

Important: This program is for NEW homes only. Buying a resale home (a home someone already lived in)? HST does not apply to those purchases at all. No rebate needed.

How Much Can You Get Back?

Here's how the 2026 rebate breaks down by home price:

• Homes up to $1,000,000: Full 13% rebate. Up to $130,000 back.
• Homes $1M to $1.5M: Flat $130,000 rebate.
• Homes $1.5M to $1.85M: Rebate goes down gradually (from $130,000 to $24,000).
• Homes over $1.85M: Only the old $24,000 maximum applies.

Before 2026, the max rebate was $24,000 and only applied to homes under $450,000. Most new home buyers in London and the GTA got nothing. Now that's changed.

The Pros: Why This Is a Big Deal

1. Massive Savings
Up to $130,000 back in your pocket is life-changing money. That could cover your down payment top-up, closing costs, renovations, or just help you get into the market at all.

2. Open to All Buyers, Not Just First-Timers
This rebate is not limited to first-time buyers. If you are buying a new home as your primary residence, or even as a long-term rental, you can qualify. Repeat buyers are included.

3. Works in London and St. Thomas Too
This is not just a Toronto thing. Any new home purchased anywhere in Ontario under these rules qualifies. If you are buying a newly built home in London or St. Thomas, this applies to you.

4. You Usually Get It Upfront
In most cases, you do not have to wait for a cheque from the government. When you buy from a builder, the builder credits the rebate to your purchase price or statement of adjustments at closing. Less cash you need to bring to the table.

5. Covers More Than Just Houses
This rebate applies to detached homes, semis, townhouses, condos, row houses, and even substantially renovated homes. It also covers new rental properties if the build started before March 31, 2026.

The Cons: What to Watch Out For

1. It's Temporary
This program only applies to purchase agreements signed between April 1, 2026 and March 31, 2027. If you sign before or after that window, you do not get the enhanced rebate. The clock is ticking.

2. The Law Is Not Fully Finalized Yet
As of mid-2026, the enhanced federal part of the rebate is still waiting on Royal Assent in Parliament. The announcement was made, the budget was tabled, but the full law has not officially passed. Most builders and lawyers expect it will pass, but nothing is 100% guaranteed until it does. Do not make major financial decisions based solely on this rebate without getting legal and tax advice first.

3. It's the Agreement Date That Matters, Not the Closing Date
You might sign your agreement in 2026 but not close until 2027 or 2028. That is fine. What matters is when you sign the Agreement of Purchase and Sale (APS), not when you get the keys. But if you signed before April 1, 2026, you missed the window even if you have not closed yet.

4. Upgrades and Extras Can Change the Math
Builders often price homes a certain way, then add parking, upgrades, and extras on top. All of those extras can be included in the HST calculation, which changes your final rebate amount. Always read your agreement carefully.

5. Condos Have Extra Rules
If you are buying a pre-construction condo, the building's construction must start before December 31, 2028. Some larger condo towers might not meet that deadline. Ask your builder directly, and have a lawyer check the agreement.

Your Questions, Answered

Does this apply to resale homes?
No. HST does not apply to resale homes at all, so there is nothing to rebate. This program is only for brand-new or substantially renovated homes bought from a builder.

Do I have to be a first-time buyer?
No. The 2026 enhanced rebate is open to all buyers who are purchasing a new home as their primary residence, or buying a new home to rent out long-term. You do not have to be a first-time buyer.

Do I pay the full price first and wait for a cheque?
Usually not. When you buy from a builder, they will typically credit the rebate back to you on closing through your statement of adjustments. You pay less upfront. However, the exact process depends on your specific Agreement of Purchase and Sale, so have a lawyer review it.

What if I signed my agreement before April 1, 2026?
Unfortunately, you do not qualify for the enhanced 2026 rebate. The old rules apply, which means a maximum of $24,000 if your home is under $450,000. If your new home costs more than that, you may not get any federal rebate under the old rules.

Can newcomers or non-citizens qualify?
The rebate is based on whether the home will be your primary place of residence in Canada, not on your citizenship status. Newcomers may qualify. However, immigration status can affect your mortgage and title structure, so speak with a real estate lawyer before signing anything.

What about investor properties?
Yes, long-term rental properties can also qualify under a separate program called the New Residential Rental Property Rebate (NRRPR). There are specific rules around construction start dates, so speak with a lawyer or accountant who handles these.

Is the rebate automatic?
No. Your builder needs to structure the agreement properly, and you may need to sign specific CRA forms. Make sure your builder knows how to handle it, and always have a real estate lawyer review your agreement before you sign.

What about owner-built homes?
If you are building your own home (acting as your own general contractor), you may also qualify, as long as construction begins between April 1, 2026 and March 31, 2027 and the home is substantially completed by December 31, 2029. This has stricter rules, so get professional advice before you start.

The Bottom Line

The 2026 Ontario HST rebate is a genuinely historic change. For buyers purchasing a new home this year, the savings are real and significant. But the rules matter, the dates matter, and the fine print matters.

Before you sign anything, talk to a real estate lawyer. And before you start shopping, talk to a real estate agent who knows the new home market in your area.

If you have questions about buying a new home in London or St. Thomas, I am happy to help. I work with buyers across both markets and can connect you with the right professionals to make sure you are protected.

Milica Cvetkovic | Broker | The Realty Firm Inc., Brokerage
519-871-4948 | milica@therealtyfirm.ca
London & St. Thomas, Ontario

Disclaimer: This blog post is for general information only and is not legal or tax advice. HST rebate rules are complex and your eligibility depends on your specific purchase agreement, closing date, and personal circumstances. Always consult a real estate lawyer and accountant before making financial decisions.