Ontario Expands HST Rebate on New Homes — What It Means for Buyers

The Ontario government has announced a temporary expansion of the HST rebate on new homes, aimed at increasing affordability and stimulating new construction across the province.

Previously, meaningful HST relief was largely limited to first-time buyers through the federal rebate program. Under this proposed change, the rebate would be extended to all buyers for a one-year period.

What’s Changing

• Buyers could receive up to $130,000 in total HST relief on new construction homes
• Applies to homes valued up to $1.5 million
• A reduced rebate would apply between $1.5M–$1.8M
• Homes above this range would revert to the existing $24,000 rebate structure

The rebate is made up of:

• 8% provincial portion (Ontario)
• 5% federal portion (subject to federal approval)

Key Timelines

To qualify under the proposed program:

• Purchase agreement must be signed between April 1, 2026 and March 31, 2027
• Construction must begin by December 31, 2028
• Completion must occur by:
• December 31, 2031 (standard cases), or
• December 31, 2029 (if construction already started prior to March 31, 2026)

The home must be used as a primary residence or residential rental property.

What This Looks Like in Practice

Let’s walk through a real example.

Assume a home is listed at $800,000 on MLS, which already includes the standard $24,000 Ontario HST rebate (how most builder pricing is presented).

Using the builder formula:

• True pre-HST price ≈ $729,200
• Total HST (13%) ≈ $94,800

Under today’s system:

• Only about $24,000 is rebated

Under the proposed program:

• The full 13% HST would be rebated

👉 Total rebate ≈ $94,800
👉 Additional savings ≈ $70,000+

This effectively brings the true cost of that $800,000 home down closer to ~$730,000.

The table below shows the effective rebates based on the MLS pricing of new homes with the current $24,000 HST rebate already included.