This article is for general information only. It is not legal, tax, or financial advice. The programs described reflect what is confirmed and proposed as of May 6, 2026. Program rules, amounts, and legislation status may change. This article will be updated as new information becomes available. Confirm your eligibility with a qualified accountant or lawyer before making any decisions.
I have had more conversations about the HST rebate on new construction in the last few weeks than I have had in the last two years combined.
Buyers are calling. Buyers are texting. Buyers who already have a new build agreement signed are asking if they qualify. Buyers who are still shopping are putting a number into their budget that may or may not apply to them. And almost every one of them, when I walk through the details with them, says the same thing: “I did not know there were two different programs.”
That is the part nobody is explaining clearly. There are two separate rebate programs in play right now. One is confirmed law. One is proposed and still needs federal legislation to pass. If you are buying a new construction home in the GTA and you are building your budget around this rebate, you need to know which one you are actually counting on.
Let’s go through all of it as it stands today. Things are moving quickly on this file, and this article will be updated as the legislation picture changes.
TL;DR
Two HST rebate programs exist for new builds in Ontario. The federal first-time buyer rebate (up to $50,000) is confirmed law. The Ontario expanded rebate (up to $130,000 combined for all buyers) is still proposed. Before you plan your budget around either number, confirm which one actually applies to you.
Why Buyers Are Confused Right Now
Here is the pattern I keep seeing across GTA buyers, whether they are in Brampton, Mississauga, Scarborough, or anywhere else in the 905 corridor.
They hear about the rebate. Sometimes from a builder rep. Sometimes from a family member. Sometimes from a headline. The number sounds big. Up to $130,000. That gets attention. So buyers start planning around it.
The problem is not that the number is fake. The problem is that the $130,000 figure most buyers are hearing about comes from the Ontario 2026 Budget, which was tabled on March 26, 2026. A budget announcement is not a law. The Ontario expanded rebate still needs the federal government to pass legislation before it takes effect. As of the date this article was published, that legislation has not passed.
At the same time, a separate program, the federal first-time home buyers GST/HST rebate, did become law on March 13, 2026. That one is confirmed and available to eligible buyers right now.
Two programs. Different rules. Different eligibility. Different legal status. The confusion is completely understandable. The risk is building your purchase budget around the wrong one.
Program 1: The Federal First-Time Buyer Rebate (Confirmed Law)
This is the one you can count on right now, if you qualify.
Think of it this way. When you buy a brand new home in Ontario, the government charges you HST on the purchase price. HST is 13 percent total: 5 percent goes to the federal government, 8 percent goes to Ontario. This program removes the federal 5 percent portion for first-time buyers.
Here is what the program covers, straight from the CRA:
- Who qualifies: First-time buyers only. You cannot have owned a home you lived in as your primary residence at any point in the current calendar year or the four calendar years before you take ownership. This also applies to your spouse or common-law partner. If either of you owned a qualifying home during that period, the rebate does not apply.
- Home price limit: The full rebate applies to homes priced at or below $1,000,000. A partial rebate applies for homes between $1,000,001 and $1,499,999. No rebate for homes at $1,500,000 or above.
- Maximum savings: Up to $50,000 on homes priced at or below $1 million.
- Agreement date: The purchase agreement must be signed on or after March 20, 2025 and before January 1, 2031.
- Construction deadline: Construction must begin before January 1, 2031 and be substantially completed before January 1, 2036.
- Primary residence only: The home must be your primary place of residence.
That sounds like a lot of conditions. Here is the plain version. If neither you nor your spouse or common-law partner has owned a home as your primary residence in the current or previous four calendar years, you signed your new build agreement after March 20, 2025, and the home is priced below $1.5 million, you likely qualify. Talk to your lawyer to confirm your specific situation.
Governing source: CRA — What Is the First-Time Home Buyers Rebate | CRA — Who Can Apply
Program 2: The Ontario Expanded Rebate (Proposed, Not Yet Law)
This is the big number most buyers are hearing about. And it is important to understand exactly where it stands right now.
On March 25 and 26, 2026, the Ontario government announced and tabled a plan to remove the full 13 percent HST from new homes for all eligible buyers, not just first-time buyers. This combines the Ontario provincial portion and the federal matching portion. Here is the structure directly from the Ontario Budget 2026:
| Home Price | Combined Rebate (proposed) | Notes |
|---|---|---|
| Up to $1,000,000 | Up to $130,000 | Full 13% HST removed: provincial and federal |
| $1,000,001 to $1,500,000 | $130,000 flat | Same amount maintained across this range |
| $1,500,001 to $1,850,000 | Declining from $130,000 to $24,000 | Phased reduction |
| Above $1,850,000 | $24,000 | Existing baseline amount only |
The $130,000 figure is the combined total. Ontario removes the 8 percent provincial portion and the federal government matches by removing the 5 percent federal portion. Ontario has announced this and is working with Ottawa. But the federal matching legislation has not passed as of May 6, 2026. The provincial side alone is $80,000 maximum. The full $130,000 requires both sides to be in law.
The Ontario Budget sets specific deadlines for this program. Your purchase agreement must be signed between April 1, 2026 and March 31, 2027. Construction must begin on or before December 31, 2028. For a new home purchased from a builder, the home must be substantially completed on or before December 31, 2031. For owner-built homes, a shorter deadline of December 31, 2029 applies. Your lawyer will confirm which deadline applies to your specific situation based on your agreement type.
As I tell buyers in this situation: “The confirmed number and the advertised number are not always the same thing.”
Governing source: Ontario Budget 2026 — HST Relief on New Homes
The Baseline Rebate That Has Always Existed
Before either of these newer programs existed, there was already a smaller rebate available to most new home buyers. It is called the GST/HST New Housing Rebate and it has been around for years.
Here is how it works. The federal portion gives back 36 percent of the GST you paid, up to a maximum of $6,300, and phases out entirely for homes priced above $450,000. Since most new builds in the GTA are well above that price, most GTA buyers see little or nothing from the federal baseline portion. The Ontario provincial baseline rebate is a separate layer and can be up to $24,000 regardless of the home price, as long as other conditions are met. Your lawyer will confirm whether either baseline portion applies to your purchase.
It is still worth knowing it exists, because it affects how the programs stack together. Your lawyer will factor it in.
The Part That Catches Most Buyers Off Guard
Most buyers assume the rebate is automatic. That the builder handles it and the savings show up on their closing statement without any effort. And for the federal FTHB rebate, that is usually true when the builder processes it as a credit at closing. But it is not guaranteed.
Here is what a lot of buyers do not realize. If you are a first-time buyer and your builder does not apply the rebate on your behalf at closing, you may need to file your own application with the CRA after you take possession. The deadline to file is two years after you take ownership. Miss that window and the rebate is gone.
For the Ontario expanded rebate, there is a different risk. Buyers who are signing purchase agreements right now and factoring in the full savings need to confirm two things: first, that the legislation actually passes before their closing date, and second, that their agreement qualifies under the final rules once the law is written. A builder rep is not a tax advisor. Get confirmation in writing from your lawyer or accountant.
The risk is not that the rebate is fraudulent. The risk is that a buyer changes their down payment plan, their budget, or their offer based on a number that has not been confirmed for their specific situation yet.
Quick Reference: Which Program Applies to You?
| Program | Who Qualifies | Max Saving | Status as of May 6, 2026 |
|---|---|---|---|
| Federal FTHB Rebate | First-time buyers only (you and your spouse/common-law partner). Agreement on or after Mar 20, 2025. | $50,000 (homes up to $1M) | CONFIRMED LAW — Royal Assent Mar 13, 2026 |
| Ontario Expanded Rebate (all buyers) | All eligible buyers. Agreement Apr 1, 2026 to Mar 31, 2027. Construction start by Dec 31, 2028. Builder purchase: completed by Dec 31, 2031. Owner-built: Dec 31, 2029. | Up to $130,000 combined (homes up to $1.5M) | PROPOSED — federal legislation required |
| Combined (federal and provincial) | First-time buyers who qualify for both programs | Up to $130,000 | PROPOSED — both components must pass |
| Standard New Housing Rebate (baseline) | Most new build buyers. Federal portion phases out above $450,000. Ontario provincial portion up to $24,000 regardless of price. | Federal: max $6,300. Ontario provincial: up to $24,000. | CONFIRMED — long-standing program |
What This Means for You
If you are looking at a new construction home in Brampton or Mississauga right now, here is the question that actually matters for your budget. Are you a first-time buyer who signed after March 20, 2025? If yes, the federal rebate is confirmed and likely applies to you. If you are a move-up buyer, or your agreement was signed earlier, the bigger number you are hearing about is the Ontario expanded rebate, which has not received federal legislation yet. That gap can be $60,000 to $80,000 in your closing calculation. Before you use either number to decide on your down payment or your offer, confirm which program applies to your specific situation with your lawyer, not your builder rep.
Not sure which rebate applies to your situation?
Send me three things: your agreement date, your purchase price, and whether you are a first-time buyer. I can tell you which rebate conversation you should be having before you rely on any number in your closing budget.
Call or text: (647) 892-2411 | mail@myshahteam.com
What GTA Buyers Need to Know Before They Sign
New construction is active across the GTA right now. Brampton, Mississauga, Scarborough, Milton. Builder projects are selling. And builder reps are doing their job, which is to sell homes. It is not their job to sort out your specific tax situation.
A few things to have in your pocket before you sit down at a builder presentation.
First, ask your builder rep which rebate is being factored into the quoted closing costs. Get it in writing. Some builders are already working the Ontario expanded rebate into their sales materials. If the federal legislation does not pass before your closing, that number disappears from your calculation.
Second, if you are a first-time buyer, confirm your eligibility for the federal FTHB rebate with your lawyer before closing. Most builders handle it correctly. But most is not the same as confirmed.
Third, if your agreement was signed before March 20, 2025, neither of the newer programs applies. The baseline New Housing Rebate may still help, and your lawyer will confirm whether the Ontario provincial portion applies to your situation.
One more shift worth knowing about: development charges
Development charges are fees builders pay municipalities to fund local infrastructure. They have historically added tens of thousands to the cost of a new home. On April 28, 2026, the City of Vaughan temporarily reduced residential development charges to zero, a saving of up to $50,193 on a new low-rise. Peel Region (Brampton, Mississauga, Caledon) reduced regional charges by 50 percent from July 2025. The HST rebate is one part of the new build cost picture. Development charges are another. A dedicated post on this is coming shortly.
And if you want to see what else can show up on a new build closing statement that nobody warned you about, I covered the adjustment sheet issue in detail in a recent post. That one catches buyers off guard just as often as the rebate question.
Read: The Adjustment Sheet Arrived Days Before Closing. The Number Was Not What They Signed For
New Build HST Rebate Checklist Before You Sign
Before you rely on any rebate number in your closing budget, run through these five questions with your lawyer or broker.
- Are you a first-time buyer, and has neither you nor your spouse or common-law partner owned a qualifying home in the current or previous four calendar years?
- What date was your purchase agreement signed? The federal FTHB rebate requires on or after March 20, 2025. The Ontario expanded rebate requires April 1, 2026 to March 31, 2027.
- Is the purchase price under $1,000,000, under $1,500,000, or above $1,500,000? The rebate amount and eligibility threshold differ across these ranges.
- Is the builder applying the rebate as a credit at closing, or will you need to file separately with the CRA after taking possession?
- Has your lawyer confirmed the rebate treatment in writing as part of your purchase review?
Frequently Asked Questions
Is the $130,000 HST rebate confirmed for new builds in Ontario?
Not yet. The $130,000 figure combines the Ontario provincial portion ($80,000 maximum) and the federal government matching portion ($50,000 maximum). Ontario announced the provincial side in the March 2026 budget. The federal government has indicated it intends to match, but that matching legislation has not passed as of May 6, 2026. Do not treat this number as confirmed in your budget until the law is in effect.
I already signed a new build agreement. Do I qualify?
It depends on when you signed. For the federal FTHB rebate, your agreement must be dated on or after March 20, 2025, and you must be a first-time buyer. For the Ontario expanded rebate (if it passes), the agreement must be signed between April 1, 2026 and March 31, 2027. If you signed before March 20, 2025, neither newer program applies. The baseline New Housing Rebate may still help and your lawyer can confirm which portion applies.
Can I get both the federal rebate and the Ontario rebate at the same time?
Potentially yes, if you are a first-time buyer, your agreement date qualifies for both programs, and the Ontario expanded rebate passes into law. The federal portion removes the 5 percent GST component. The Ontario portion removes the 8 percent provincial component. Together they can reach $130,000 on a home priced at or below $1 million. Confirm with your lawyer whether your specific agreement qualifies for both.
Does the HST rebate apply to resale homes?
No. These programs apply only to newly constructed or substantially renovated homes purchased from a builder. Resale homes are generally exempt from HST entirely, so there is no rebate applicable to a resale transaction.
What happens if the Ontario rebate does not pass before my closing?
If the federal legislation required to activate the Ontario expanded rebate does not pass before your closing date, the provincial rebate would not apply to your transaction. You would still qualify for any other programs you are eligible for, including the confirmed federal FTHB rebate if you are a first-time buyer with an eligible agreement. This is exactly why it matters to know which rebate you are counting on and whether it is confirmed before you finalize your closing budget.
Questions about your new build purchase? Let’s talk before you sign.
I work with first-time buyers, move-up buyers, and newcomers across Brampton, Mississauga, and the GTA who are navigating new construction purchases. Send me your agreement date, your purchase price, and whether you are a first-time buyer. I will tell you exactly which rebate conversation applies to your situation before you build your budget around a number that may not be confirmed.
Gaurang Shah | Shah Team | Royal LePage Flower City Realty
(647) 892-2411 | mail@myshahteam.com | myshahteam.com
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References
- Canada Revenue Agency — What Is the First-Time Home Buyers GST/HST Rebate: canada.ca
- Canada Revenue Agency — Who Can Apply for the FTHB Rebate: canada.ca
- Canada Revenue Agency — GST/HST New Housing Rebate (RC4028): canada.ca
- Ontario Budget 2026 — HST Relief on New Homes: budget.ontario.ca
- TRREB — Statement on Vaughan’s Reduction of Development Charges (April 29, 2026): trreb.ca
