Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A new build usually costs more up front: the GTA new single-family benchmark was $1,248,866 in August 2026, and new homes carry HST while most resale homes do not. But Ontario rebates for agreements signed by March 31, 2027 can remove most HST on a qualifying home under $1 million, and new homes come with a Tarion warranty.
This guide is for GTA buyers deciding between a brand-new house from a builder and a resale house someone has lived in, for a 2027 purchase. You will get the latest price numbers for both, how HST and the new-home rebates work, what Tarion covers, the costs builders can add at closing, and a plain answer on who should pick which.
Is a new build more expensive than a resale house in the GTA?
Usually, yes, before rebates. BILD and Altus Group reported that the benchmark price of a new single-family home in the GTA was $1,248,866 in August 2026, before any HST rebate. That was down 14.6% from a year earlier. The new condo apartment benchmark was $1,041,918.
Resale prices are measured differently, so compare with care. The table below shows the median price of detached homes sold on TRREB’s MLS system, which are mostly resale homes, in cities where a lot of new building is happening.
| City | Detached median (MLS) | Days on market | Freehold townhouse median (MLS) |
|---|---|---|---|
| Oshawa | $730,000 | 25 | $657,500 |
| Clarington | $820,000 | 25 | $647,850 |
| Brampton | $950,000 | 30 | $755,000 |
| Whitby | $977,000 | 23 | $765,000 |
| East Gwillimbury | $1,125,000 | 38 | $835,000 |
| Milton | $1,130,000 | 32 | $810,000 |
| Caledon | $1,180,000 | 40 | $799,995 |
| Vaughan | $1,415,000 | 30 | $1,014,500 |
Source: TRREB MLS data via REALM, January–October 2026, city-wide medians. New-home benchmark from BILD/Altus Group, August 2026, GTA-wide.
In most of these cities, the typical resale detached home sold for less than the GTA’s new single-family benchmark. A new home also comes with HST, builder adjustments and a wait to move in. Against that, a new home may qualify for large HST rebates in 2026 and early 2027, which is why BILD said new low-rise sales were well above their 10-year average that August.
Do you pay HST on a new build in Ontario?
Yes. A new home carries HST, made up of a 5% federal part and an 8% Ontario part. A resale home does not: the Canada Revenue Agency says most purchases of previously occupied homes are exempt. That is one of the biggest cost differences between the two.
Several rebates can cut or erase that tax on a new home you will live in. According to the CRA’s Notice 346, updated August 2026:
| Rebate | Up to | Key condition |
|---|---|---|
| Ontario new housing rebate | $24,000 | Available at any price if other conditions are met |
| Ontario enhanced new housing rebate (with the rebate above) | $80,000 of the 8% Ontario part | Agreement signed April 1, 2026 to March 31, 2027; full rebate up to $1 million, flat $80,000 to $1.5 million, partial up to $1.85 million |
| Ontario new home affordability payment | $50,000 (up to the 5% federal part) | Reduced by any federal new housing or first-time buyer GST rebate |
| Federal first-time home buyers’ GST rebate | $50,000 | First-time buyers; full relief up to $1 million, phased out at $1.5 million |
Source: Canada Revenue Agency, Notice 346 (August 2026) and federal first-time buyer GST rebate rules. The home must be your or a relative’s primary residence. Rebates do not simply stack; check your exact case.
For buyers who qualify, these rebates can make a new home under $1 million close to HST-free. That is a big reason to look at new construction before the March 31, 2027 agreement deadline. My guide to the 2026 HST and GST rebates walks through examples.
Do not count a rebate until your lawyer confirms you qualify. The enhanced Ontario rebate depends on when you signed, when construction starts and finishes, and whether you will live in the home. Agreements signed before April 1, 2026 generally do not qualify, even if changed later. Check whether the builder’s price already assumes you will assign the rebate to them.
What does the Tarion warranty cover on a new home?
New homes from Ontario builders come with a warranty backed by Tarion, the province’s new home warranty program. A resale house comes with no warranty unless you negotiate one. Tarion’s freehold warranty has three parts:
- One year: the home is built in a workmanlike way, free of material defects, fit to live in and meets the Ontario Building Code.
- Two years: water getting in through the basement, foundation, windows or outer walls; defects in electrical, plumbing and heating systems; and exterior cladding that fails.
- Seven years: major structural defects, such as failure of a load-bearing part of the home.
Total warranty coverage is capped at $400,000. It does not cover normal wear and tear, damage from poor maintenance, or problems the owner causes.
Instant Home Valuation
What’s your home
worth today?
Answer six quick questions and get an instant value range built from current Toronto & GTA sale data — property type, size, condition, lot and location all weighted the way a real pricing conversation weighs them. Takes about ninety seconds.
Reading recent GTA sale data…
Building your estimate
Estimated market value
—
$0–$0
Most likely value $0 · roughly $0 per square foot
What moved the number
Starting from the area baseline for your property type, here’s what each answer added or subtracted.
Market context
Recent local averages for comparison.
—
A range is a starting point.
A strategy is what sells.
This model doesn’t know that your neighbour’s identical semi went $80,000 over asking last month, or which two upgrades actually pay back in your area. That conversation is free and takes twenty minutes.
How is your deposit protected on a new build?
Tarion’s deposit protection on a new freehold home has limits. Coverage is up to $60,000 for homes priced at $600,000 or less. Above $600,000, it is 10% of the price, to a maximum of $100,000. Anything you pay above that is at risk.
A new rule matters in 2027. For freehold agreements signed on or after April 1, 2026, the buyer should notify Tarion within 45 days of signing. Tarion says that, from January 1, 2027, buyers who give notice on time keep the full $100,000 maximum. Buyers who do not are paid from a special fund capped at $15 million a year, shared out if claims run higher. My post on Tarion’s 45-day notice rule explains the steps.
What extra costs come with a new build?
Closing adjustments
Builders can add fees at closing, but only if they are listed in Schedule B of the Tarion Addendum. Tarion says a builder cannot make you pay a cost that is not listed there. Read Schedule B with your lawyer before you sign, and see my guide to closing costs on a new build.
Development charges
Cities, regions and school boards charge builders development charges to pay for roads, pipes and services. In Mississauga, the total for a single or semi-detached home was $139,019.54 from August 1, 2026 to January 31, 2027. That charge is paid on new construction. A resale buyer does not pay it again.
Delays
New homes can be delivered late. Tarion’s delayed closing compensation is capped at $7,500, which may not cover months of extra rent or a second move. Read about builder delays and cancelled projects before you commit.
What are the advantages of buying a resale house?
- No HST on most resale homes, and no builder adjustments.
- You see what you buy: the actual lot, the finished street, the trees, the traffic and the neighbours.
- A home inspection before your offer is firm, as a condition, if the seller accepts it.
- Faster move-in: you pick a closing date with the seller rather than waiting for construction.
- Room to negotiate: detached homes in the table above sat for 23 to 40 days on average, and detached medians fell in all of those cities compared with 2025.
The downsides are older systems and finishes, and no warranty. Budget for a roof, furnace or windows on an older home, and get a thorough inspection.
Can you cancel a new home purchase in Ontario?
For new freehold houses, not yet. Tarion says the 10-day cooling-off period for buyers of new freehold homes was moved to start on January 1, 2028. If you sign before then, ask your lawyer which rules apply to your agreement. The period only starts once the builder delivers the agreement with the required new home information sheet and Tarion Addendum. More detail is in my post on the cooling-off period for freehold homes.
A resale purchase has no cooling-off period. Once your offer is firm, you are bound. That is why conditions for financing and inspection matter so much on a resale.
New build or resale: who should pick which?
Pick a new build if you:
- Qualify for the HST rebates and can sign before March 31, 2027.
- Want a warranty, modern systems and lower repair costs for the first years.
- Can wait for construction and handle a possible delay.
Pick a resale house if you:
- Need to move on a set date, or want to see the exact home and street first.
- Want a mature neighbourhood, a bigger lot or trees.
- Do not qualify for the rebates, since a resale home carries no HST at all.
I work with buyers on both sides across the GTA. My view, and it is only a view: in 2027 the rebates are the deciding factor. If you are a first-time buyer, or will live in the home and can sign a qualifying deal under $1.5 million, a new build deserves a serious look. If you would pay HST in full, a resale home in the same city is usually better value today, and you avoid the wait and the closing surprises.
What to do next
- Ask a real estate lawyer which HST rebates you would qualify for, and by what date.
- Compare one new build and two resale homes in the same area on total cost, after tax and rebates.
- For any new build, read the Tarion Addendum and Schedule B, and diarize the 45-day Tarion notice.
- For any resale, keep financing and inspection conditions in your offer.
- If you are selling first, use the estimator above to price your current home.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Is it better to buy new construction or resale in Ontario in 2027?
It depends on the HST rebates. A new home carries HST, while most resale homes do not. For agreements signed April 1, 2026 to March 31, 2027, the CRA describes Ontario rebates that can remove most HST on a qualifying primary residence under $1 million. If you qualify, new can make sense. If not, resale is often better value.
Is a new build more expensive than a resale home in the GTA?
Usually, before rebates. BILD and Altus Group put the GTA benchmark for a new single-family home at $1,248,866 in August 2026. From January to October 2026, MLS detached medians, mostly resale, were lower in many new-build cities, such as $950,000 in Brampton and $1,130,000 in Milton. Rebates can close part of that gap.
Do you pay HST on a resale house in Ontario?
No, in most cases. The Canada Revenue Agency says most purchases of previously occupied housing are exempt from GST/HST. HST applies to new homes and to homes that have been substantially renovated, which generally means 90% or more of the interior was removed or replaced. Ask your lawyer if a recently gutted house might count as new.
What does Tarion cover on a new home?
Tarion’s freehold warranty covers workmanship, material defects and Building Code compliance for one year; water penetration and electrical, plumbing and heating defects for two years; and major structural defects for seven years. Total coverage is capped at $400,000. It does not cover normal wear and tear or damage from poor maintenance. Resale homes have no Tarion warranty.
How much of my deposit does Tarion protect?
For a new freehold home, Tarion protects up to $60,000 if the price is $600,000 or less, and 10% of the price up to $100,000 above that. From January 1, 2027, buyers of freehold homes signed on or after April 1, 2026 must notify Tarion within 45 days to keep the full coverage.
Is there a cooling-off period for new homes in Ontario?
Not yet for new freehold homes. Tarion says the 10-day cooling-off period for buyers of new freehold homes now starts on January 1, 2028, and it starts only once the builder delivers the agreement with the required information sheet and Addendum. Resale purchases in Ontario have no cooling-off period once an offer is firm.
What hidden costs come with buying a new build?
The main ones are closing adjustments listed in Schedule B of the Tarion Addendum, such as utility connections and levy changes, plus HST if you do not qualify for rebates. Tarion says builders cannot charge costs not listed in Schedule B. Delays can add rent and moving costs, and Tarion’s delayed closing compensation is capped at $7,500.
Can first-time buyers get the GST back on a new home?
Yes. The federal first-time home buyers’ GST rebate gives full GST relief, up to $50,000, on a new home up to $1 million, phased out to zero at $1.5 million, for agreements on or after March 20, 2025 and before 2031. You must be 18 or older, a citizen or permanent resident, and the first person to live in the home.
Do new homes sell for more than resale homes later?
There is no rule that they do. Once you move in, your home becomes a resale home and competes with every other home on the MLS. In January to October 2026, detached medians fell in new-build cities such as Brampton, Milton and Vaughan, in TRREB MLS data via REALM. Location, lot and condition matter more than age.
Sources
- BILD / Altus Group via BNN Bloomberg – GTA new home sales, August 2026 (22 Sept 2026)
- Canada Revenue Agency – Notice 346, Ontario enhanced new housing rebate (August 2026)
- Canada Revenue Agency – RC4052, GST/HST information for the home construction industry
- Tarion – Warranty information for freehold homes (effective May 1, 2024)
- Tarion – Freehold purchase agreement notice and deposit coverage changes
- Tarion – Important updates for vendors/builders (cooling-off start moved to January 1, 2028)
- Tarion – What is the Addendum and why should every new home buyer care
- City of Mississauga – Development charge rates, August 1, 2026 to January 31, 2027
Related reading
- Mississauga vs Oakville in 2027: Prices, Commute and Which Fits You
- Brampton vs Mississauga in 2027: Prices, Commute and Which Fits You
- Markham vs Richmond Hill in 2027: Prices, Commute and Which Fits You
- Vaughan vs Markham in 2027: Prices, Commute and Which Fits You
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.