This expanded rebate is only a one-year measure. It applies from April 1, 2026, to March 31, 2027.

The proposal strengthens the existing provincial HST New Housing Rebate and the New Residential Rental Property Rebate for that period. After March 31, 2027, the extended rebate would return to the previous rules (unless the government extends it).

The eligibility requirements for this expanded rebate are the same as the current rules for the HST New Housing Rebate and the New Residential Rental Property Rebate. In order to qualify:

• The home must be a newly built home.
• The purchaser must be buying the home for use as their primary residence or as a residential rental property.
• The agreement of purchase and sale must fall within the April 1, 2026, to March 31, 2027 window.

If you’re buying a new home to live in, or purchasing a new property to rent out, you may be eligible. This is important for investors as well, because the rebate now also applies to qualifying purpose-built rental housing, with the full 8% provincial portion of the HST being removed.

Ontario is also expanding the HST relief that was announced last fall, specifically for first-time home buyers. The province is taking steps to align the effective date of the provincial HST rebate for first-time home buyers with the federal government’s newly proposed earlier effective date of March 20, 2025.

This means that if you are a first-time buyer and your agreement of purchase and sale for a new home was entered into with the builder on or after March 20, 2025 and on or before December 31, 2030, both the province and the federal government’s rebates would be available to you.

For buyers, the math is simple. On a $900,000 new build, the full 13% HST amounts to $117,000. Under this proposal, that entire amount would be rebated back to you. That is a significant amount of money you can use toward your down payment, closing costs, or to reduce the overall cost of your purchase.

For investors, the removal of the 8% provincial HST on qualifying purpose-built rental housing means that building new rental supply in Ontario just became more financially viable.

The government estimates that the expanded 13% HST rebate could stimulate an additional 8,000 housing starts in Ontario next year, support up to 21,000 jobs, and boost Ontario’s GDP growth by $2.7 billion.

A few things to keep in mind before you move forward.

The rebate applies to new homes only. Resale homes are not eligible for this HST rebate.

Further details on the expanded HST rebates for all eligible buyers will be made available following the release of the 2026 Budget. The budget was released on March 26, 2026, and we expect more guidance on the application process to follow.

Also, like any rebate program, there may be timing considerations around when the rebate is applied. In some cases, rebates are refunded after closing, which means you should plan to have financing in place for the full purchase amount and then apply for the rebate afterward. Make sure to speak with your mortgage professional about how this affects your specific financing plan.

RE/MAX Team Paliwal can help you understand how this expanded HST rebate applies to your situation. Whether you are looking to purchase a new home to live in, or you are considering a rental property investment, our team will walk you through the numbers and connect you with trusted mortgage professionals who can help you plan accordingly.

Our team has access to reputable builders and projects across the Greater Toronto Area, and with this rebate now available to all eligible buyers of new homes, there may be an opportunity to make your next purchase significantly more affordable.

If you’re not sure where to begin, contact us for a free, no-obligation consultation in person or over Zoom, and we’ll help you figure out how to take advantage of this incentive.

You can read the full news release by the Ontario government here.

RE/MAX Team Paliwal is a small team of highly accomplished real estate agents with more than 40+ years of combined experience in the Greater Golden Horseshoe Area. Our reputation for a thorough process attracts many first-time homebuyers, but we also work with all buyers and sellers aiming to upgrade their homes.

After hundreds of successful deals, we are fortunate to be one of the most trusted and highly reviewed real estate teams online. You can find all real testimonials and reviews of our team on RankMyAgent.com, a verified review platform by the Canadian Real Estate Association, realtor.ca and RE/MAX.CA

Our team has ranked in the top 50 teams in Canada at RankMyAgent.com for the last 4 years, and our team leader Gyanesh Paliwal is the recipient of RE/MAX International’s Hall of Fame Award, Lifetime Achievement Award, and Titan Club Awards.