If you’ve been watching the Ontario housing market, today brought a massive shift that changes the math for anyone looking to buy a newly built home.
Premier Doug Ford just announced that the province is expanding the 13% HST rebate to all homebuyers of newly built homes not just first-time buyers. This is a significant move designed to kickstart construction and make homeownership more attainable across the province.
Here is the breakdown of what this means for your next move.
The “130,000 Reasons” to Look at New Construction
Until today, the most substantial HST rebates were often reserved for first-time buyers. Under this new proposal, the provincial and federal governments are partnering to remove the full 13% HST for eligible buyers.
The Numbers You Need to Know:
- Homes up to $1.5 Million: You can qualify for a maximum rebate of $130,000.
- Homes between $1.5M and $1.85 Million: The rebate will decrease proportionally.
- Homes above $1.85 Million: Buyers will still qualify for the pre-existing maximum rebate of $24,000.
Who Qualifies?
This isn’t just for people buying their very first home. The expansion is designed to support a broader range of buyers, provided the property meets specific criteria:
- Type of Home: Must be a newly built home or a substantially renovated property.
- Usage: The home must be used as your primary residence or as a residential rental property.
- Timeline: The proposed rules are set to take effect for a one-year period from April 1, 2026, to March 31, 2027.
Why This Matters Right Now
The housing market has faced headwinds recently with higher building costs and shifting demand. By removing the HST burden which can add six figures to the closing costs of a new build—the government is essentially handing a massive “discount” back to the buyer.
For investors and families looking to upsize, this is a rare window where the tax “penalty” on new construction is being significantly neutralized.
Expert Tip: If you are currently in negotiations for a new build or considering a pre-construction project, the timing of your Purchase and Sale Agreement is critical to ensure you fall within this rebate window.
Is a New Build Right for You?
With $130,000 back in your pocket, the gap between “resale” and “new construction” just got a lot smaller. Whether you are looking in the GTA or expanding your portfolio, this rebate is a game-changer for your bottom line.
