The Ontario government has announced a proposal to expand HST relief for eligible new home buyers, a move intended to make homeownership more attainable and support new housing construction across the province.
Under the proposed changes, eligible buyers of new homes valued up to $1 million could receive a rebate on the full 13% Harmonized Sales Tax (HST), with a maximum rebate of up to $130,000.
What HST Rebate Means
For many buyers, HST can represent a significant added cost when purchasing a new home. By removing the full 13% HST on eligible new homes, the province aims to reduce the financial burden on families and individuals trying to enter the housing market.
The proposed rebate would also apply to new homes valued up to $1.5 million (maintaining the maximum rebate of $130,000) as well as home renovations.
What the HST Rebate Could Mean for Homebuyers, Builders, and Investors
This proposal is designed to help buyers save money while also encouraging more new housing construction in Ontario. According to the province, the expanded rebate could help stimulate an additional 8,000 housing starts next year, support up to 21,000 jobs, and contribute approximately $2.7 billion to Ontario’s GDP.
For buyers, sellers, builders, and real-estate professionals, this could be an important development to watch. If implemented, the rebate may improve affordability, strengthen buyer confidence, and create new opportunities for those considering a new-build home, renovation planning, or residential investment.
Eligibility Details
While further details are expected following the release of the 2026 Budget, the province has indicated that existing eligibility requirements for the New Housing Rebate and New Residential Rental Property Rebate would remain in place. This includes the requirement that the purchaser must be acquiring the new home for use as their primary residence or as a residential rental property.
The expanded rebate is proposed to be available for one year, from April 1, 2026, to March 31, 2027. Ontario is also taking steps to align certain first-time home buyer rebate timelines with the federal government’s proposed effective date of March 20, 2025.
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