A new policy announced by the provincial and federal governments will temporarily expand the HST rebate on new homes to all buyers —not just first-time buyers—for one year  (1st April 2026 to 31st March 2027).

This move could significantly reshape the real estate market across the province.

What Is the HST Rebate Expansion?

In Ontario, buyers of new construction homes pay 13% HST, but may qualify for rebates on both the federal and provincial portions.

• Federal rebate: 5% upto 50,000$ 

• Ontario rebate: 8% upto 80,000$

Combined, these rebates can significantly reduce the cost of buying a new home after legislation is passed.

👉 The key change:
This benefit is now available to ALL BUYERS (for a limited time), not just first-time purchasers.

Impact on New Construction Homes

Stronger Demand for New Builds

This incentive makes pre-construction and new inventory much more attractive:

• Lower upfront costs

• Better affordability

• Increased investor interest

Boost for Builders

Builders are expected to benefit from:

• Faster sales

• Reduced unsold inventory

• More project launches

Condo Market Revival

Struggling condo markets may see renewed demand as investors re-enter due to improved economics.

Who Benefits Most?

• Move-up buyers – now eligible for rebates

• Investors – improved returns on new builds

• First-time buyers – still benefit the most

Key Takeaway

This one-year policy creates a limited window of opportunity:

• ✅ New construction becomes significantly more attractive

• ⚠️ Resale properties face short-term pressure

• 📈 Builders gain momentum

Bottom line:
If you’re considering buying in Ontario, this could be one of the best opportunities in years to purchase a new home with major tax savings.

📩 Thinking of Buying a Preconstruction Home in Ottawa ?

Call Me for VIP Access to Builder Inventory & Exclusive Pricing.

👤 Jai Patel
📞 613-404-8706

📍 Ottawa Real Estate