Ontario new-housing HST rebates expanded with higher limits and new first-time-buyer top-ups

Plain-language summary · AI-assisted · not legal advice

The federal regulations that set out the Ontario component of HST rebates for new residential housing have been significantly expanded. Three new rebate streams are added on top of the existing base rebate: (1) a temporary "additional rebate" for purchase agreements signed between April 2026 and March 2027 on homes priced up to about $1.85–$2.09 million, worth up to $80,000; (2) a permanent additional rebate for qualifying first-time home buyers on homes up to about $1.5–$1.695 million, also capped at $80,000; and (3) a combined cap ensuring that total rebates across all streams never exceed $80,000 or the actual provincial HST paid, whichever is less. These changes apply across all housing categories: newly built homes sold by builders, owner-built homes, cooperative housing shares, and new residential rental properties. Anti-avoidance rules prevent buyers and sellers from terminating and re-signing purchase agreements simply to qualify for the new temporary rebate. Builders who credit rebates directly at closing must update their processes to account for all applicable rebate streams when calculating amounts owed to purchasers.

Who this affects: new home buyers in Ontario · first-time home buyers in Ontario · home builders and developers · cooperative housing corporations · residential rental property investors