Buy a new home in Ontario and save up to $130,000 in HST.
Your agreement must be signed by March 31, 2027.
Not sure if you qualify? Book a free 15-minute call with me.
What you gain from the HST rebate:
- Save up to $130,000 on a new home up to $1.5 million.
- Need less cash at closing. The rebate is usually credited right on your closing statement.
- Borrow less. Lenders often use the price net of the rebate.
- Open to all eligible buyers, not only first-time buyers.
- Works on new condos, towns and houses bought from a builder.
How much can you save?
| New home price | HST (13%) | Rebate now | HST you pay now | You paid under the old rules |
|---|---|---|---|---|
| $250,000 | $32,500 | $32,500 | $0 | $13,000 |
| $500,000 | $65,000 | $65,000 | $0 | $41,000 |
| $1,000,000 | $130,000 | $130,000 | $0 | $106,000 |
$1M to $1.5M: flat $130,000 rebate. $1.5M to $1.85M: the rebate shrinks. $1.85M and up: only the regular rebate (up to $24,000).
Estimates for an eligible buyer of a new home used as a primary residence. “Old rules” = the regular federal and Ontario new housing rebates before April 1, 2026.
Is it a rebate or a discount?
Legally, it is a rebate. You owe the HST, and the government gives it back.
In practice, it works like a discount. You sign the rebate over to the builder, and the builder takes it off what you pay at closing.
You can also pay the full HST at closing and apply to the CRA yourself afterwards. Most buyers let the builder do it.
How it works, step by step:
Who qualifies?
- ✅ Individuals buying a new or substantially renovated home from a builder.
- ✅ The home is your (or a relative’s) primary residence.
- ❌ Investors buying to rent. A separate rental rebate (up to $24,000 in Ontario) may apply.
- ❌ Resale homes. They have no HST to begin with.
- ❌ Agreements signed before April 1, 2026 or after March 31, 2027.
Tax issues to know:
- Live in it. The primary residence rule is the big one. Renting it out can cost you the rebate.
- Selling within 12 months? Canada’s flipping rule can tax the full profit as income.
- Assignments: HST applies to the assignment price. Get advice before you assign.
- First-time buyers also have a separate federal GST rebate. The total relief still tops out at $130,000.
- Mortgage: lenders often base the loan on the price net of the rebate. Plan your down payment.
Closing costs at the same prices (Toronto):
| Price | Ontario land transfer tax | Toronto land transfer tax | Lawyer and title insurance | Total (before builder fees) |
|---|---|---|---|---|
| $250,000 | $2,225 | $2,225 | ~$2,500 | $6,950 |
| $500,000 | $6,475 | $6,475 | ~$2,500 | $15,450 |
| $1,000,000 | $16,475 | $16,475 | ~$2,500 | $35,450 |
- First-time buyers can get up to $4,000 (Ontario) and $4,475 (Toronto) of land transfer tax back.
- Builder adjustments (development charges, Tarion, utility hook-ups) vary by project. Ask for them to be capped in your agreement.
- Outside Toronto? There is no Toronto land transfer tax.
HST rebate FAQ
How much is the Ontario HST rebate on new homes?
Up to $130,000. That is the full 13% HST on homes up to $1 million, and a flat $130,000 from $1 million to $1.5 million.
What is the deadline?
Your agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027.
Do I have to be a first-time buyer?
No. The enhanced rebate is open to all eligible buyers of a new home used as a primary residence.
Can investors get it?
No, not if you buy to rent. Investors may qualify for the separate rental property rebate, up to $24,000 in Ontario.
Does it apply to resale homes?
No. Resale homes do not have HST, so there is nothing to rebate.
When do I get the money?
Usually at closing. The builder credits it on your statement of adjustments. Or you pay the HST and apply to the CRA afterwards.
What if I sell or rent it out soon after closing?
You may lose the rebate. The CRA can take it back, and builder agreements usually let the builder charge it to you.
Does the rebate lower my mortgage?
Often yes. Lenders usually use the purchase price net of the rebate.
Want to use the rebate before it ends?
I will show you which new homes qualify and what you will really pay. Free, no pressure.
Keep reading: Top 25 pre-construction projects for 2027 · VIP access to new launches · Invest in Toronto condos
About the author
Yossi Kaplan, MBA
Realtor & Sales Representative · Right At Home Realty, Toronto
- Specializing in real estate investments, new homes and pre-construction.
- Excellent negotiator. Licensed since 2005, hundreds of transactions.
- Great with math and finance. I run your real numbers, rebate included.
- Friendly & professional. Straight answers, no pressure.
Updated October 29, 2026. Based on CRA guidance on the Ontario Enhanced New Housing Rebate as summarized by TRREB, and the CRA new housing rebate page. Figures are estimates. This is not tax or legal advice; confirm with your lawyer or accountant. Yossi Kaplan, MBA, Realtor and Sales Representative, Right At Home Realty. About · Contact
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