Ontario's New HST Relief | Save Money on New Builds

Ontario's New HST Relief Could Save Homebuyers Thousands of Dollars

Ontario's housing market may soon receive a significant boost, thanks to the province's proposed expansion of HST relief on new homes.

For buyers considering a newly built home or pre-construction property, the savings could be substantial—up to $130,000 in combined federal and provincial tax relief. However, many of the details are still being finalized, creating uncertainty for both buyers and builders.

What is the new HST relief proposal?

As part of the 2026 Ontario Budget, the province announced plans to temporarily expand HST rebates on qualifying new homes purchased between April 1, 2026, and March 31, 2027. The goal is to improve housing affordability while encouraging new housing construction.

Under the proposal:

• New homes valued up to $1 million could receive a full rebate of the 13% HST, worth up to $130,000.
• Homes priced between $1 million and $1.5 million could still qualify for the maximum rebate.
• The rebate would gradually decrease for homes valued between $1.5 million and $1.85 million.
• Homes above $1.85 million would generally remain subject to the existing rebate structure.

What This Means for Homebuyers

If fully implemented, the expanded HST relief could significantly reduce the effective cost of purchasing a new home in Ontario. For many buyers, especially those considering pre-construction properties, the savings could help offset higher borrowing costs and improve affordability.

However, eligibility requirements, construction timelines, occupancy rules, and rebate administration details will all play an important role in determining who qualifies. Buyers should not assume that every new home purchase will automatically receive the full advertised rebate.

The Mortgage Perspective

While tax relief can lower the overall cost of homeownership, financing remains a critical part of the equation. Buyers considering a new construction purchase should evaluate how potential HST savings may impact their down payment requirements, mortgage qualification, and long-term affordability.

With interest rates, builder incentives, and government housing policies all evolving, obtaining mortgage advice early in the process can help buyers make informed decisions and avoid surprises at closing.

Bottom Line

Ontario's proposed HST relief program has the potential to become one of the largest housing affordability measures introduced in recent years. While the opportunity is significant, the rules are still being finalized. Buyers considering a new construction home should stay informed, review contracts carefully, and seek professional mortgage guidance to ensure they maximize any available savings.

If you're considering purchasing a new build or pre-construction home, contact our team. We'll help you discuss a mortgage strategy and get a clear understanding of your purchasing power.

Call Brevity Capital today!
Mississauga (905) 814-4455
Cambridge (519) 714-1714
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