Ontario announced a full HST rebate on new homes up to $1 million, with a maximum rebate of $130,000 — up to $50,000 on the 5% federal portion and up to $80,000 on the 8% Ontario portion. The main programme requires the purchase agreement to be signed between April 1, 2026 and March 31, 2027, with construction timeline conditions attached. The maximum $130,000 remains available on homes valued $1 million to $1.5 million; between $1.5 million and $1.85 million it declines gradually to $24,000. Separately, a first-time buyer signing with a builder between March 20, 2025 and December 31, 2030 may access both the federal and provincial rebates. This is the single largest financial incentive in Ontario new-home buying and the window is finite.
This is the most consequential thing to happen to Ontario new-home buying in years, and a lot of buyers still do not know the numbers.
Up to $130,000. That is not a marketing figure — it is the combined maximum of the federal and provincial rebates on a qualifying new home. On a pre-construction condo it can be the difference between a purchase that works and one that does not.
Two things make it urgent. First, the main programme has a defined agreement window: April 1, 2026 to March 31, 2027. Second, it lands in a market where builders are already offering their strongest incentives in years — capped development charges, free assignment clauses, extended deposits — because GTA prices have softened.
Rebate plus builder incentives plus a soft market is an unusual combination. It does not mean you should buy pre-construction; it means that if you were going to, the arithmetic right now is materially better than it was.
This is not tax advice. Rebate eligibility depends on your specific circumstances and how you use the property, and getting it wrong is expensive. Confirm your position with an accountant before you sign.
The numbers — how the $130,000 breaks down
HST on a new home in Ontario is 13% — a 5% federal component and an 8% provincial component. The rebate addresses both, separately.
The two pieces
Federal: up to $50,000 on the 5% portion.
Provincial: up to $80,000 on the 8% Ontario portion.
Combined maximum: $130,000.
How it scales with price
Up to $1 million: full HST rebate.
$1 million to $1.5 million: the maximum $130,000 remains available.
$1.5 million to $1.85 million: the rebate declines gradually, down to $24,000.
Above $1.85 million: outside the relief structure.
What this means in Etobicoke
Most Etobicoke pre-construction sits comfortably inside the strongest band. Kipling Station Condos from around $400,000 and Reina Condos from around $700,000 are both well under the $1 million full-rebate threshold.
The declining band matters for new detached construction in The Kingsway, Thorncrest and Princess-Rosethorn, where a completed custom build can land between $1.5 million and $1.85 million — and where the new graduated Municipal Land Transfer Tax rates above $3 million also apply.
What to do about it: Most Etobicoke pre-construction falls in the full-rebate band. Work out where your specific purchase price sits, because the difference between bands is tens of thousands of dollars.
The timing windows — and why they decide everything
Rebates like this are defined by their windows, and the windows are the part people misunderstand.
The main programme
The purchase agreement must be signed between April 1, 2026 and March 31, 2027, with specific construction timeline conditions depending on the type of property.
Note carefully: it is the signing date of the agreement that matters for the window, not your closing date. A pre-construction condo signed inside the window may not close for years — that is expected, provided the construction timeline conditions are met.
Those construction timeline conditions are not a footnote. They are a real eligibility requirement and they differ by property type. Confirm what applies to your specific purchase.
The first-time buyer stream
Separately, a first-time home buyer entering an agreement of purchase and sale for a new home with a builder between March 20, 2025 and December 31, 2030 may have both the provincial and federal rebates available.
That is a much longer window, which is why first-time buyers should establish their eligibility category early — it changes your timeline pressure entirely.
The practical implication
If you are considering a new build or pre-construction purchase in the next year, the window is a genuine factor in your timing — one of the few cases where a deadline is a legitimate reason to move rather than a sales tactic.
Equally: do not let a deadline push you into the wrong purchase. A $130,000 rebate on a unit that appraises below your contract price at closing is not a good outcome.
What to do about it: The agreement signing date is what counts, and construction timeline conditions apply. Establish which window and which stream applies to you before you plan around it.
Who qualifies — and the trap that catches investors
This is where the most expensive mistakes happen, and it is the same trap as the existing new housing rebate.
The primary residence question
New housing rebates generally turn on whether the buyer occupies the home as a primary residence. A buyer who intends to rent the unit out is in a different position, typically dealing with a rental property rebate that must be claimed after closing with a qualifying lease in place — rather than being credited by the builder at closing.
The consequences of getting this wrong run to tens of thousands of dollars, and can include having to repay a rebate that was credited on the assumption you would occupy the home.
The builder pricing trap
Builder pricing is frequently quoted net of an assumed rebate. If you do not qualify for the rebate the price assumed, your actual cash requirement at closing is higher than the number on the agreement suggests.
This is exactly what catches investors and assignees. If you are buying an assignment, verify in writing whether the price you were quoted assumed a rebate you will not qualify for.
What to actually do
Before you sign, ask an accountant: which rebate applies to me, what is the amount, is it credited by the builder at closing or claimed afterward, what documentation will I need, and what happens if my intended use changes?
Then have a real estate lawyer confirm how the agreement of purchase and sale handles the rebate — because the agreement is what governs, not the sales conversation.
Do not rely on a salesperson’s summary, a forum post, or this article. Get it in writing from someone who has read your contract.
What to do about it: Confirm your rebate eligibility and whether builder pricing assumed it — before signing. This single check prevents the most expensive surprise in new-home buying.
How this changes the pre-construction calculation right now
The unusual combination
Three things are true at once, which is rare:
1. A rebate worth up to $130,000. 2. A soft market — TRREB’s July 2026 figures show the GTA average at $1,003,956, down 4.5% year over year. 3. Builders offering their strongest incentives in years: capped development charges, free assignment clauses, extended deposit structures.
If you are buying new, ask for all of it. Builders are granting concessions now that they were not in 2021.
What the rebate does not fix
Appraisal risk at closing. Lenders fund against appraised value, not contract price. If your unit appraises below what you agreed to pay, you fund the shortfall in cash. The rebate does not change that.
Interim occupancy fees. You will pay the builder monthly between move-in and registration, and none of it reduces your mortgage. Budget twelve months.
Completion risk. A developer with a thin balance sheet can delay, redesign or cancel. A rebate on a project that never completes is worth nothing. Builder track record matters more in a soft market, not less.
The honest summary
The rebate meaningfully improves the arithmetic on a new build. It does not turn a bad purchase into a good one. Buy pre-construction only if you can carry it, close it and hold it — and then take every incentive available.
What to do about it: Take the rebate and the builder incentives together — but the rebate does not offset appraisal shortfall, occupancy fees or completion risk. Those still decide whether the purchase works.
Ontario HST rebate on new homes — the key figures
| Item | Detail |
|---|---|
| Federal portion (5% GST) | Up to $50,000 |
| Provincial portion (8% Ontario) | Up to $80,000 |
| Combined maximum | $130,000 |
| Up to $1 million | Full HST rebate |
| $1M – $1.5M | Maximum $130,000 still available |
| $1.5M – $1.85M | Declines gradually to $24,000 |
| Main agreement window | April 1, 2026 – March 31, 2027 (construction timeline conditions apply) |
| First-time buyer window | Agreements with a builder March 20, 2025 – December 31, 2030 |
| What counts for the window | Agreement signing date, not closing date |
| Biggest trap | Builder pricing quoted net of a rebate you may not qualify for |
- HST and GST rebates on new condos in Ontario
- Top 5 pre-construction projects in Etobicoke
- Interim occupancy and occupancy fees explained
- Assignment sales in Toronto: HST, consent and what to know
- Tarion warranty: coverage, deadlines and how to claim
- Toronto Vacant Home Tax and land transfer tax 2026
- All Etobicoke and Toronto pre-construction projects
Buying new? Let me model the whole number with the rebate in it.
I will run the all-in cost for any project — purchase price, your likely rebate position, deposit schedule, estimated occupancy fees, development levies, both land transfer taxes and your actual cash at closing. Then you will know whether the rebate makes the deal work or just makes it look better.
Talk to JatinFree home valuationNet proceeds calculatorConfidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
How much is the Ontario HST rebate on new homes in 2026?
Up to $130,000 combined — up to $50,000 on the 5% federal GST portion and up to $80,000 on the 8% Ontario portion. New homes valued up to $1 million receive a full HST rebate. The maximum $130,000 remains available on homes valued between $1 million and $1.5 million. Between $1.5 million and $1.85 million the rebate declines gradually to $24,000.
What is the deadline for the Ontario HST rebate on new homes?
The main programme requires the purchase agreement to be signed between April 1, 2026 and March 31, 2027, with specific construction timeline conditions depending on the type of property. Importantly, it is the agreement signing date that matters for the window, not the closing date — a pre-construction condo signed inside the window may close years later, provided the construction timeline conditions are met. Separately, a first-time home buyer entering an agreement with a builder between March 20, 2025 and December 31, 2030 may have both the federal and provincial rebates available, which is a considerably longer window.
Do investors qualify for the Ontario HST rebate on a new condo?
The position differs substantially from an owner-occupier. New housing rebates generally turn on whether the buyer occupies the home as a primary residence, while a buyer who intends to rent the unit out is typically dealing with a rental property rebate that must be claimed after closing with a qualifying lease in place, rather than credited by the builder at closing. Getting this wrong can cost tens of thousands of dollars and can require repaying a rebate credited on the assumption you would occupy the home. Confirm your specific position with an accountant before signing.
Is builder pricing quoted with the HST rebate included?
Frequently yes, and this is the most common expensive trap. If the price you were quoted assumed a rebate you do not actually qualify for, your cash requirement at closing is higher than the agreement price suggests. This catches investors and assignment buyers in particular. Verify in writing whether the quoted price is net of an assumed rebate, and have a real estate lawyer confirm how the agreement of purchase and sale handles the rebate — the agreement governs, not the sales conversation.
Does the HST rebate make pre-construction a good buy in 2026?
It meaningfully improves the arithmetic but does not resolve the underlying risks. TRREB’s July 2026 figures show the GTA average at $1,003,956, down 4.5% year over year, and units frequently appraise below their contract price at closing — lenders fund against appraised value, so the buyer funds any shortfall in cash, and no rebate changes that. You will also pay interim occupancy fees between move-in and registration that do not reduce your mortgage, and a rebate on a project that is delayed or cancelled is worth nothing. Buy pre-construction only if you can carry it, close it and hold it — then take the rebate alongside the builder incentives currently available, including capped development charges and free assignment clauses.
Does the HST rebate apply to a custom home build?
New-build homes are within the scope of the relief, but eligibility conditions including the agreement window and construction timeline requirements vary by property type, and a self-built home is treated differently from a purchase from a builder. In Etobicoke this matters most in The Kingsway, Thorncrest Village and Princess-Rosethorn, where a completed custom build can land in the $1.5 million to $1.85 million declining band — and where Toronto’s graduated Municipal Land Transfer Tax rates above $3 million may also apply. Confirm your specific eligibility with an accountant before committing, because the treatment of custom and self-built homes is not the same as a builder purchase.
Ontario announced a full HST rebate on new homes valued up to $1 million, with a maximum combined rebate of $130,000 — up to $50,000 on the 5% federal GST portion and up to $80,000 on the 8% Ontario portion. The maximum $130,000 remains available for homes valued between $1 million and $1.5 million, and between $1.5 million and $1.85 million the rebate declines gradually to $24,000. The main programme requires the purchase agreement to be signed between April 1, 2026 and March 31, 2027, with construction timeline conditions that vary by property type; the agreement signing date determines eligibility for the window rather than the closing date. Separately, first-time home buyers entering an agreement of purchase and sale with a builder between March 20, 2025 and December 31, 2030 may access both the federal and provincial rebates. Rebate eligibility generally depends on whether the buyer occupies the home as a primary residence; buyers intending to rent typically deal with a rental property rebate claimed after closing with a qualifying lease in place. Builder pricing is frequently quoted net of an assumed rebate, so buyers who do not qualify face a higher cash requirement at closing than the agreement price suggests.
Sources and further reading
Government of Ontario 2026 Budget — HST relief for new home buyers · Toronto Regional Real Estate Board, 2026 HST New Home Buyer Rebate information and July 2026 market report (GTA average $1,003,956, down 4.5% year over year) · Osler, Hoskin & Harcourt LLP and Gowling WLG analyses of Ontario’s new HST rebate and expanded buyer eligibility · Canada Revenue Agency GST/HST new housing and new residential rental property rebate rules. Rebate amounts, eligibility criteria and windows are subject to legislation and change — confirm current rules with the Canada Revenue Agency, the Government of Ontario and a qualified accountant.
General information prepared August 2026. This is NOT tax, legal or accounting advice. HST and GST rebate amounts, eligibility criteria, agreement and construction timeline windows, primary residence requirements and rental property rebate rules are set by federal and provincial legislation, are detailed and fact-specific, and change — confirm your individual position with a qualified accountant and a real estate lawyer before signing any agreement of purchase and sale. Claiming a rebate you are not entitled to, or having a rebate credited on an incorrect assumption about occupancy, can result in repayment obligations and penalties. Builder pricing may be quoted net of assumed rebates; verify in writing. Market figures cited are TRREB GTA-wide averages for July 2026. Jatin Dua is a Realtor with RE/MAX Quantum Realty and is not an accountant, lawyer or tax advisor.