06/17/2026
Could Ontario’s New-Home Tax
Break Affect Resale Homes?
A recent real estate article raised an interesting point about the GTA market:
Ontario’s new-home HST rebate may be pulling some buyers away from resale homes.
The rebate, which came into effect April 1, offers buyers of eligible new homes up to a 13% HST rebate, with savings of up to $130,000 on new homes priced up to $1.5 million.
That is a major incentive.
According to the article, resale competition in the GTA stayed unusually soft in May. It noted that 92% of resale homes sold below asking, while only 7% sold above asking.
At the same time, new single-family home sales were reportedly stronger than the 10-year April average, suggesting some buyers may be shifting toward new construction.
So what does this mean?
For buyers, it may be worth comparing both options: new construction and resale.
New builds may offer tax savings, but resale homes may have more room for negotiation right now if competition stays lower than usual.
For sellers, this is another reminder that pricing and strategy matter. If some buyers are being pulled toward new homes, resale listings need to be positioned properly from day one.
My take?
Do not buy just because there is a rebate, and do not sell based on headlines alone. The right move depends on your budget, timeline, lifestyle, and the specific property.
If you are trying to figure out whether resale or new construction makes more sense for you, feel free to reach out and I can help you compare the numbers.
