The Ontario government has announced plans to temporarily expand the HST rebate on new homes, a move aimed at improving affordability and supporting buyers across the province. If approved, this program would allow eligible buyers, not just first-time purchasers, to receive significant tax relief on qualifying new homes.
Expanded Eligibility for Buyers
Unlike previous programs that focused primarily on first-time buyers, this proposal would extend the rebate to all eligible buyers. The home must be used as a primary residence or as a residential rental property, and specific timelines around purchase agreements and construction must be met to qualify.
How Much Could You Save?
For a limited time, eligible buyers could receive up to $130,000 in HST rebates on new homes valued up to $1.5 million. For homes priced above that threshold, the rebate would gradually decrease, with a minimum rebate of $24,000 still available under existing rules. This broader structure better reflects today’s pricing across many Ontario markets.
How This Works with the Federal Rebate
This program is designed to work in tandem with the federal rebate. Ontario would cover the 8% provincial portion of the HST, while the federal government has agreed—pending legislation—to cover the remaining 5%. Together, this means eligible buyers could effectively receive relief on the full 13% HST.
A Limited-Time Opportunity
The expanded rebate is proposed as a temporary measure, running from April 1, 2026 to March 31, 2027. With a defined timeline in place, buyers considering new construction may want to plan ahead to take full advantage of the program.
Why This Matters
At a time when new construction, particularly in the condo market, has slowed, this initiative is designed to encourage both buyers and builders to move forward. By reducing upfront costs, the program aims to stimulate housing supply while helping more buyers enter the market.
What This Means for You
If you’ve been considering a newly built home, this program could offer meaningful savings. Understanding eligibility, timelines, and how the rebate is applied will be key to making the most of the opportunity. Have questions? Contact us today, we’re ready to help!
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