Ontario Expands HST Rebate-What It Means for Homebuyers
Ontario Expands HST Rebate — What It Means for Homebuyers
The Ontario government has announced a major proposal aimed at improving housing affordability by expanding the HST rebate on new homes. If implemented, this could significantly reduce the cost of buying a newly built property and encourage more housing development across the province.
Key Highlights of the Proposal
Under the new plan, eligible homebuyers could benefit from the removal of the full 13% Harmonized Sales Tax (HST) on new homes.
Full rebate for homes priced up to $1 million
Maximum savings of up to $130,000
Extended rebate eligibility up to $1.5 million
Gradual reduction in rebate up to homes priced at $1.85 million+
This expansion builds on previous measures aimed at helping first-time buyers and improving affordability in Ontario’s housing market.
Federal and Provincial Partnership
The federal government has agreed to partner with Ontario on this initiative, helping to offset costs by covering the federal portion of the HST, subject to legislative approval. Together, this represents approximately $2.2 billion in tax relief for housing.
Impact on the Housing Market
This proposal is expected to:
Stimulate up to 8,000 new housing starts
Support approximately 21,000 jobs
Boost Ontario’s GDP by an estimated $2.7 billion
Additionally, the province is continuing to invest in housing infrastructure and incentivize municipalities to accelerate development.
What This Means for Buyers
For buyers considering new construction or pre-construction homes, this could be a significant opportunity to reduce upfront costs and enter the market more affordably.
However, the program is currently proposed for a limited timeframe:
📅 April 1, 2026 – March 31, 2027
Timing and eligibility will be key factors for buyers looking to take advantage of these savings.
Final Thoughts
With rising costs and ongoing economic uncertainty, this initiative represents a meaningful step toward improving housing affordability and increasing supply in Ontario.
If you’re considering buying a new home, staying informed and acting early could make a substantial financial difference.
Source: The Government of Ontario, News Release, March 25, 2026