March 26, 2026

If you’ve been thinking about buying a new construction home in the GTA, what was just announced changes the math significantly.

On March 25, 2026, Premier Ford announced a major expansion of the HST rebate on new homes — and the biggest shift is who qualifies. For the first time, this rebate is no longer limited to first-time buyers. Move-up buyers, investors, and anyone purchasing a new home as a primary residence or rental property are now eligible.

Here’s everything you need to know.

What Changed

Previously, the HST rebate on new homes was reserved for first-time buyers. As of April 1, 2026, that changes –  and the window is exactly one year.

This is a temporary measure, tied to Ontario’s provincial budget, and it applies to purchase agreements signed between April 1, 2026 and March 31, 2027.

How Much Can You Get Back?

The rebate is calculated based on the purchase price of the new home:

• Up to $1,000,000 – full 13% HST rebated, up to $130,000 back
• $1,000,000 – $1,500,000 – still eligible for the maximum $130,000
• $1,500,000 – $1,850,000 – reduced rebate on a sliding scale
• Above $1,850,000 – $24,000 under the pre-existing rebate structure

For most buyers in the GTA, the sweet spot is anything under $1.5M — and that covers a large portion of the new construction market right now.

Two Tiers – And Most People Will Miss the Second One

The rebate works in two tiers, and Tier 2 is the one that’s flying under the radar.

Tier 1 – New Projects

• Purchase agreement signed between April 1, 2026 – March 31, 2027
• Construction must begin by December 31, 2028
• Substantially completed by December 31, 2031

Tier 2 – Already Under Construction

• Construction started before March 31, 2026
• Purchase agreement signed April 1, 2026 – March 31, 2027
• Substantially completed by December 31, 2029

This is the one most buyers — and even some agents — will overlook. Because of the way the announcement was framed, many people assume this is only about buildings that haven’t broken ground yet. It isn’t.

If a building is already under construction and will be substantially complete by end of 2029, it qualifies. That applies to a significant portion of the GTA preconstruction market that exists right now. Projects you may have already been looking at could be eligible.

First-Time Buyers: This Stacks

If you’re a first-time buyer, this gets even better. The new provincial rebate stacks on top of the existing federal First-Time Home Buyer (FTHB) rebate, which provides up to $50,000 in additional relief.

A first-time buyer on a $999,000 new build could be looking at approximately $130,000 in total HST savings when both programs are combined.

That’s not a small number.

Why This Matters Right Now

The GTA preconstruction market already has some of the strongest developer incentives we’ve seen in years. Builders are motivated. Pricing has been adjusted. And now, on top of all of that, you have a government-backed rebate that can save you up to $130,000 — for exactly one year.

The window opens April 1, 2026. It closes March 31, 2027. After that, this expanded eligibility goes away.

If you’ve been on the fence about new construction — whether as a first home, a move-up, or an investment property — this is the moment to have the conversation.

Every situation is different. The tier you fall into, the project you’re considering, and how this rebate interacts with your purchase all depend on specifics.

That’s exactly what we’re here for.

Reach out to Team Elfassy and let’s walk through what this means for your situation – before the window closes.