Your Guide: Here's What You Need to Know

If you've been sitting on the real estate sidelines, waiting for the right moment to make a move, that moment may have just arrived. On March 25, 2026, Premier Doug Ford announced one of the most significant affordability measures for homebuyers in recent memory: the full elimination of the 13% Harmonized Sales Tax (HST) on new homes for a period of one year. Whether you're a first-time buyer, a growing family looking to upsize, or someone who has simply been priced out for years, this rebate could put real money back in your pocket - up to $130,000 in some cases.

Here's a plain-language breakdown of what was announced, who qualifies, and what it means for Ontario's housing market.

For Ottawa buyers specifically, this is a significant window of opportunity. Ottawa's new build market — from townhomes in Barrhaven and Kanata to condos in Westboro and Centretown — includes substantial supply that was already under construction before the April 2026 deadline. If you've had your eye on a new build in the Ottawa area, this rebate could fundamentally change your numbers and finally make the math work in your favour.

What Exactly Was Announced?

Ontario's provincial government, in partnership with the federal government, is proposing to eliminate the full 13% HST on newly built homes from April 1, 2026 to March 31, 2027 - a one-year window. This applies to all buyers in the province, not just first-time homebuyers or specific income brackets, which marks a significant departure from previous rebate programs that had much narrower eligibility.

How Much Could You Actually Save?

This is where things get exciting - and the numbers are substantial.

For new homes priced at $1 million or under, buyers would receive a full rebate of the 13% HST, saving up to $130,000 on the purchase. That's not a small line item; for many buyers, that's equivalent to a down payment, years of savings, or the difference between qualifying for a mortgage and not.

For homes priced between $1 million and $1.5 million, the maximum rebate of $130,000 is still maintained. So even if your new home comes in at $1.3 million, you'd still receive the full $130,000 back.

For homes priced between $1.5 million and $1.85 million, the rebate gradually decreases on a sliding scale — starting at $130,000 at the $1.5 million mark and tapering down proportionally. Homes priced above $1.85 million would receive a maximum rebate of $24,000.

In short, the vast majority of new home purchasers in Ontario stand to benefit meaningfully, since a significant portion of the new housing stock falls within that $1 million to $1.5 million range.

Request new build pricing, floor plans, and site plans

Who Qualifies?

The eligibility criteria are tied to three key conditions:

Construction must have begun before March 31, 2026. This prevents developers from rushing new builds specifically to cash in on the rebate window.
The purchase agreement with the builder must be signed between April 1, 2026 and March 31, 2027. This is the critical window - your deal needs to be inked within the one-year period.
Construction must be substantially completed by December 31, 2029. This gives builders a reasonable runway to deliver homes that are already under construction, accounting for the realities of construction timelines.

One notable aspect of this announcement is its universality. Unlike previous HST rebate programs in Ontario, which were often limited to primary residences, owner-occupiers, or buyers below a certain income level, this rebate appears to be open to all buyers - including investors. That broad eligibility is already generating discussion in the real estate and policy communities.

✅ Quick Reference: Rebate at a Glance

Not a fan of fine print? Here's everything you need to know, simplified.

Rebate Amounts by Home Price

Home Price | Maximum HST Rebate

Up to $1,000,000 | Up to $130,000 (full 13%)

$1,000,000 – $1,500,000 | $130,000 (full rebate maintained)

$1,500,000 – $1,850,000 | Decreasing on a sliding scale

Above $1,850,000 | $24,000 maximum

3 Rules You Must Meet to Qualify

Rule 1 - Construction already started: The home's construction must have begun before March 31, 2026.
Rule 2 - Sign your deal in the window: Your purchase agreement with the builder must be signed between April 1, 2026 and March 31, 2027.
Rule 3 - Completion deadline: The home must be substantially completed by December 31, 2029.

Key Restrictions to Know

Applies to new builds only - resale homes do not qualify.
The rebate window is one year only (April 1, 2026 - March 31, 2027).
Construction on the home must have already been underway before April 2026 - you can't start a new build from scratch and expect to qualify.
The policy is proposed but not yet legislated - passage through the provincial budget is expected but not yet confirmed.
Always verify with your builder, realtor, or real estate lawyer that a specific project meets all eligibility criteria before signing.

Steps for Buyers

Find a qualifying new build - confirm the builder started construction on or before March 31, 2026.
Review the numbers - use the table above to estimate your potential savings.
Consult a professional - speak with a mortgage broker, realtor, or real estate lawyer to confirm eligibility and factor savings into your financing.
Sign your purchase agreement - ensure it's dated between April 1, 2026 and March 31, 2027.
Track the legislation - follow updates from the Ontario Ministry of Finance to confirm the policy is passed into law.

Why Is the Government Doing This Now?

Ontario's housing affordability crisis has been building for years. Home prices in the Greater Toronto Area and across much of the province have remained stubbornly high, construction costs have soared, and housing starts have struggled to keep pace with population growth driven by immigration and interprovincial migration.

Taxes are one piece of a complex affordability puzzle, but they're a meaningful one. HST on new construction adds a significant cost burden on top of already elevated land and building costs. Developers often pass these costs to buyers, making new homes less competitive against the resale market and suppressing demand for new builds - which is the exact type of housing supply Ontario desperately needs.

The government estimates this measure will stimulate an additional 8,000 housing starts and support up to 21,000 jobs in the construction and trades sectors. It is also projected to boost Ontario's real GDP by $2.7 billion. The total cost to the province is estimated at $1.4 billion, with the combined provincial and federal tax relief amounting to nearly $2.2 billion.

What Should Buyers Do Right Now?

If you're actively looking to purchase a newly built home in Ontario, here's what to keep in mind:

Act within the window. The rebate applies to purchase agreements signed between April 1, 2026 and March 31, 2027. That's a 12-month window, and given how quickly policies can shift, it's worth moving deliberately rather than waiting.

Work with a knowledgeable realtor or lawyer. The eligibility conditions - particularly the construction start date requirement - can be nuanced. Make sure the builder can confirm their project qualifies before you sign anything.

Factor the savings into your budget realistically. A rebate of this size can meaningfully change your mortgage math. On a $900,000 home, saving $117,000 in HST could reduce your required mortgage, lower monthly payments, or allow you to put more toward a down payment. Speak with a mortgage professional to understand how the savings work in your specific situation.

Watch for the legislation. As of the announcement date, this policy is proposed but not yet legislated. However, with federal buy-in and a budget inclusion planned, passage is widely expected. Stay tuned to updates from the Ontario Ministry of Finance and your real estate or legal advisors.

The Bigger Picture

This rebate doesn't solve Ontario's housing crisis on its own. Issues like land availability, municipal zoning restrictions, development charges, and the overall cost of construction all need to be addressed for the province to meaningfully close its housing supply gap. But eliminating HST on new builds is a bold, direct intervention that puts real money back in buyers' hands and should meaningfully stimulate new construction in the short term.

For Ontarians who have watched homeownership feel increasingly out of reach, the announcement on March 25, 2026 is a rare piece of genuinely good news. A savings of up to $130,000 on a new home purchase is not a symbolic gesture — it's a tangible, substantial benefit that could change the calculus for thousands of families across the province.

If a new home purchase has been on your radar, now is the time to pay close attention.

Frequently Asked Questions

Does this apply to resale homes?

No. The rebate applies to newly built homes only. Resale properties are not eligible, regardless of price or location.

What if I already signed a purchase agreement before April 2026?

If your agreement was signed before April 1, 2026, it would not qualify under this rebate. The policy applies to purchase agreements signed between April 1, 2026 and March 31, 2027.

Is the rebate automatic?

The rebate is typically built into the purchase transaction — builders are expected to reflect it in the pricing of qualifying homes. That said, confirm eligibility directly with your builder and real estate lawyer before signing anything.

How do I know if a specific project qualifies?

Three things need to be true: construction began before April 1, 2026; your purchase agreement is signed between April 1, 2026 and March 31, 2027; and the home is substantially complete by December 31, 2029. Your agent and builder can confirm whether a specific project meets all three criteria.

Steve Peippo is a licensed Ottawa real estate agent with Real Broker Ontario Ltd., specializing in new construction and helping buyers navigate Ottawa’s evolving market. Have questions about a specific new build? Reach out directly.

Let’s go shopping for a new build!