Ontario homebuyers have a new reason to act sooner rather than later. A temporary HST rebate for qualifying new homes can save eligible buyers up to $130,000, but only for agreements signed within a limited one-year window.
New HST Relief for New Homes
As of April 1, 2026, a temporary HST rebate is available for qualifying new homes in Ontario, effectively reducing the 13% HST burden for eligible buyers. The program applies to homes purchased as a primary residence or as a residential rental property, with the biggest benefits for homes priced under $1.5 million.
What Buyers Can Save
For new homes under $1.5 million, buyers may qualify for the full HST rebate, capped at $130,000. Between $1.5 million and $1.85 million, the rebate decreases on a sliding scale, and homes over $1.85 million are limited to the existing standard provincial rebate of $24,000.
Important Dates
The rebate window runs from April 1, 2026 to March 31, 2027, and the Agreement of Purchase and Sale must be signed during that period. Construction deadlines also apply: it must begin by December 31, 2028 for primary residences and by December 31, 2029 for rental properties, with substantial completion required by December 31, 2031.
First-Time Buyer Note
First-time homebuyers may still access the separate federal rebate program, and the report notes that these benefits can be stacked during the one-year window. That makes this an especially important opportunity for buyers who have been waiting on the sidelines because of affordability concerns.
Closing Cost Considerations
The report also warns that buyers may need to pay the full HST upfront at closing and apply for the rebate afterward, which can create a cash-flow challenge. Because lenders often finance the purchase price but not the tax portion, buyers should speak with their mortgage broker early to avoid surprises before closing.
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