04/14/2026
There’s been a lot of confusion lately around HST rebates on new construction… so here’s a simple, clear breakdown of what’s actually available right now (and what’s still just a proposal):
✴️. Federal First-Time Buyer GST/HST Rebate (NEW – now in effect)
This one is specifically for first-time buyers purchasing a new build.
– Applies to the 5% federal portion of HST
– Offers up to 100% back (up to $50,000)
– Full rebate on homes up to $1M, then phases out to $1.5M
– Must be your primary residence
👉 In simple terms: qualifying first-time buyers can effectively eliminate the federal portion of HST.
✴️ Proposed Ontario “Full HST” Rebate (NOT law yet)
This is the one everyone’s been hearing and talking about.
– Would top up the existing Ontario rebate (explained below)
– Goal: eliminate the full 8% provincial portion
– Expected for homes up to $1M (then phased out)
– Applies to all buyers, but likely time-limited (about 1 year)
👉 If this becomes law:
5% (federal) + 8% (provincial) = potentially no HST on qualifying homes under $1M.
But here’s the key:
This is still a proposal. It hasn’t been passed yet, and timelines/details are still unclear.
Right now, builders are reacting differently, some adjusting pricing in anticipation, others waiting for confirmation.
✴️ Ontario HST New Housing Rebate (already in place)
This has been around for years and applies to most new builds (not just first-time buyers).
– Covers part of the 8% provincial portion
– Calculated as 75% of the provincial tax on the first $400K, and capped at $24,000 on homes above that price
– Usually already built into the purchase price
👉 Important: it applies regardless of price, but still caps at $24K.
If you’re thinking about buying pre-construction, timing and strategy matter more than ever. Happy to walk through how this applies to your specific situation.
