Ontario Will Rebate Up to $130,000 in HST on New Homes: 2026 Buyer Guide

Buyers · Updated 2026-07-16 · By Richard Addo-Kessie, Realtor & Mortgage Agent

Direct answer: Ontario announced in March 2026 that eligible buyers of new homes priced up to $1 million will get the full 13% HST rebated - up to $130,000 back - on purchase agreements signed between April 1, 2026 and March 31, 2027, per the Ontario government's announcement. For Brampton and GTA buyers looking at new construction, this is the single largest buyer incentive in years. Here is how it works and how to actually use it.

What the rebate covers, tier by tier

Based on the province's announcement and analysis published by law and accounting firms, the structure works in three tiers. New homes up to $1 million: the full 13% HST is rebated - worth up to $130,000. New homes between $1 million and $1.5 million: a flat $130,000 reduction. Homes between $1.5 million and $1.85 million: a declining reduction, phasing down to the pre-existing $24,000 provincial rebate. The rebate combines a federal portion (the 5% GST, tied to the federal first-time buyer GST relief on new homes) and the 8% provincial portion of the HST - which is why eligibility rules matter and are worth confirming against your specific situation before you sign anything.

The three deadlines that decide everything

Sign between April 1, 2026 and March 31, 2027. The purchase agreement date is the trigger. Agreements signed outside this window do not qualify under the announced program.
Construction must start by December 31, 2028.
Substantial completion by December 31, 2031.

That first deadline is the one that should shape your planning: if a new build was already on your radar for the next few years, the financial case for signing within this window is dramatic.

What this means in Brampton dollars

New townhomes and detached homes in Brampton, Caledon and Milton frequently price in exactly the sweet spot of this program. On an $850,000 new townhome, 13% HST is roughly $110,000 - money that under this program comes back to an eligible buyer rather than being baked into the cost. Stack that with the existing first-time buyer toolkit - the Ontario land transfer tax rebate up to $4,000, the FHSA, and the RRSP Home Buyers' Plan - and 2026-27 is arguably the strongest alignment of incentives new-home buyers in the GTA have ever had.

The fine print buyers should respect

New construction contracts are builder-drafted and the HST treatment inside them is not standardized - some prices are quoted with rebates assigned to the builder, some are not. Before you sign: confirm you meet the buyer eligibility rules, confirm how the rebate is handled in YOUR agreement of purchase and sale, and have a lawyer review the assignment clauses. A rebate this large also affects your financing - lenders treat the purchase price and rebate flows in specific ways, and your pre-approval should be built around the real numbers.

New build vs. resale in this market

Resale still has advantages - established neighbourhoods, no construction wait, and a corrected market where sellers negotiate. But this program changes the math: a new build that looked $100,000 more expensive than a comparable resale may now effectively be at parity for an eligible buyer. The right answer depends on your timeline (can you wait for construction?), your budget certainty, and the specific builder. This is a spreadsheet conversation, not a slogan conversation - and it is one I run with clients using live numbers from both sides.

The order of operations

Confirm your eligibility for the rebate before falling in love with a model home
Get pre-approved so your budget reflects the rebate structure and the stress test
Shortlist builders and review agreements with a lawyer before signing
Sign inside the program window if the numbers work

Programs with deadlines reward buyers who prepare early and punish buyers who hear about them in month eleven. You are now in the first group.

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Frequently asked questions

How much is the new Ontario HST rebate on new homes?

For eligible buyers, the full 13% HST is rebated on new homes priced up to $1 million - a maximum of $130,000. Homes between $1 million and $1.5 million receive a flat $130,000 reduction, and homes between $1.5 million and $1.85 million receive a declining reduction down to the existing $24,000 provincial rebate.

What are the deadlines for the Ontario HST rebate?

The purchase agreement with the builder must be signed between April 1, 2026 and March 31, 2027. Construction must begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031.

Does the HST rebate apply to resale homes?

No. The rebate applies to newly built homes - buying from a builder or building your own. Resale homes do not carry HST, so no rebate applies. Eligibility rules also apply to the buyer, so confirm your situation before signing.