Big News for New Home Buyers: The HST Rebate Just Got Much Better

If you’ve been thinking about buying a newly built home, this is something to pay attention to. The Ontario and federal governments have introduced significant tax relief, and depending on your situation, you could save up to $130,000 at closing.

As of April 1, 2026, Ontario is rebating the 8% provincial portion of HST on new homes for all buyers. First-time buyers can also stack the federal 5% portion on top, bringing the total savings much higher. The Ontario rebate is temporary and only applies to agreements signed before March 31, 2027, so timing matters here.

What this looks like in simple terms

First-time buyers Up to $130,000 in savings Full 13% HST rebate Applies up to $1.5M. All other buyers, including investors Up to $80,000 in savings 8% provincial rebate only Applies up to $1.5M

What happens above $1.5M

Once you go over $1.5M, the federal rebate no longer applies. The provincial portion is still available but starts to decrease, dropping from $80,000 down to $24,000 by the time you reach $1.85M.

Investors, this part often gets missed

The Ontario rebate isn’t just for people moving into the property. If you’re buying a new build as a long-term rental, you can still qualify for the provincial rebate, which can be up to $80,000.

A few important points:

• The property has to be a long-term rental, not short-term or Airbnb
• The agreement must be signed before March 31, 2027
• Construction needs to be completed by December 31, 2029
• Investors typically pay the HST upfront and apply for the rebate afterward

 

Buying with help from family

This comes up a lot, so here’s how it works: A gifted down payment does not affect your eligibility. A co-signer who is not on title also does not affect things. Where it can get tricky is if a parent is added to title. If they’ve owned a home recently, it could impact first-time buyer eligibility for the federal portion. That’s one situation where it’s worth having a quick conversation with your lawyer before you sign anything.

Do you qualify as a first-time buyer?

It’s more flexible than most people think. You may qualify as long as you haven’t owned and lived in a home as your primary residence in the past four calendar years.

My take

For first-time buyers, this is a big opportunity. Saving up to $130,000 on a new build is not something we see often. Even for move-up buyers or investors, saving up to $80,000 is significant. The main thing to keep in mind is the timeline. The Ontario rebate expires March 31, 2027, and that window will go quickly.

If you’ve been thinking about a new build in Milton, Oakville, or Burlington, it’s worth having a conversation now to see if the numbers actually make sense for you. If you want, I can walk you through what this would look like based on your price range and situation.

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This is for general information only and not tax or legal advice. You should always confirm details with your real estate lawyer or tax professional before making any decisions.

Market Update

GTA Home Sales Up While Listings Down in April

05/04/2026

Home sales increased on a year-over-year basis in April 2026, while the supply of listings trended lower. This suggests that overall market conditions in the Greater Toronto Area (GTA) tightened during the first full month of spring. Despite tighter market conditions, selling prices edged lower on average compared to last year, as buyers continued to benefit from ample choice and negotiating power.

“We have experienced an uptick in home buying activity so far this spring. Buyers have taken advantage of more affordable housing market conditions on the back of lower home prices. If market conditions continue to tighten and home prices level off, this could be a signal to intending homebuyers who remain on the sidelines,” said TRREB President Daniel Steinfeld.

“Lower home prices and borrowing costs over the past year have been a catalyst for some homebuyers this spring. However, we still have a substantial amount of pent-up demand in the marketplace. More certainty on the trade front and an easing in geopolitical tensions would result in further improvements in market activity,” said TRREB’s Chief Information Officer Jason Mercer.

GTA REALTORS® reported 5,946 home sales through TRREB’s MLS® System in April 2026 – an increase of seven per cent compared to April 2025. New listings entered into the MLS® System amounted to 17,097– down by 9.3 per cent year-over-year.

On a seasonally adjusted basis, April 2026 home sales and new listings were up month-over-month compared to March 2026. Sales were up by a greater monthly rate than new listings, potentially suggesting more competition between buyers in some neighbourhoods.

The MLS® Home Price Index (MLS® HPI) Composite benchmark was down by 6.6 per cent year-over-year in April 2026. The average selling price, at $1,051,969, was down by 4.9 per cent compared to April 2025.

On a month-over-month seasonally adjusted basis the average selling price edged up compared to March 2026. The MLS® HPI Composite was flat over the same period.