How much is the new HST rebate on new-construction homes in Toronto?
Ontario buyers purchasing a new-construction home now qualify for a combined federal and provincial rebate worth up to $130,000 — up to $50,000 back on the federal portion (GST) and up to $80,000 back on the provincial portion (Ontario's share of the HST) — on eligible homes priced up to $1,000,000.
The catch: the enhanced Ontario rebate only applies to agreements of purchase and sale signed between April 1, 2026 and March 31, 2027, and it's built specifically for first-time buyers.
By Beril & Sedat Homes | June 26, 2026
If you've been eyeing a new build in Toronto, North York, Vaughan, Markham, or a pre-construction condo downtown, this is the kind of number that changes the math on your purchase entirely — and it's new enough that a lot of buyers in the GTA haven't fully connected the dots yet.
Bill C-4, which created the first-time home buyers' GST/HST rebate, received Royal Assent on March 12, 2026. Ontario followed with its own enhanced rebate on top of the federal one. Put together, they're the biggest single savings lever available to a first-time buyer purchasing new construction in this province right now.
Here's what it actually means for a Toronto or GTA purchase, and where the timeline gets tight.
What qualifies, and what doesn't
The rebate applies to first-time home buyers purchasing or building a new or substantially renovated home that will be their primary residence. That covers:
New builds purchased directly from a builder
Pre-construction condos
Homes you build yourself or contract to have built
Substantially renovated homes, in some cases
It does not apply to resale homes bought on MLS, assignment sales structured a certain way, or investment properties that won't be your primary residence — your lawyer will want to confirm exactly how your specific deal is structured before you count on the rebate.
The federal piece eliminates GST entirely on homes valued up to $1,000,000, with a partial reduction phasing out between $1,000,000 and $1,500,000. Ontario's enhanced rebate — the one worth up to $80,000 — is time-limited to agreements signed between April 1, 2026 and March 31, 2027, on homes valued up to $1,000,000. Miss that window on the paperwork date, and you're back to the old, smaller rebate structure.
What this looks like on an actual GTA purchase
Take a $950,000 new-construction townhome in Markham, bought by a first-time buyer under an agreement signed in the eligible window:
Federal portion: roughly $47,500 back (5% GST otherwise owed)
Ontario portion: roughly $76,000 back (8% provincial HST portion otherwise owed)
Combined savings: in the neighbourhood of $123,500
These figures are illustrative — your actual rebate depends on the final purchase price, how the agreement is structured, and CRA's rebate formula, which is why we always recommend running your specific numbers with your lawyer or mortgage broker before you rely on an estimate. This is the difference between a new build feeling out of reach and feeling genuinely competitive with resale.
That matters right now specifically because resale inventory across the GTA has been sitting longer and pricing has softened — buyers finally have room to compare new construction against resale on a level footing instead of assuming new construction always costs more upfront.
The rebate doesn't erase your other closing costs
This is where it's easy for buyers to get ahead of themselves. The HST rebate reduces one specific cost — the tax on the purchase — but it doesn't touch everything else that shows up at closing:
Land Transfer Tax and Municipal Land Transfer Tax — Toronto is one of the only cities in Ontario that stacks a municipal land transfer tax on top of the provincial one, and first-time buyers get a separate rebate here (up to roughly $8,475 combined), but it's a different program with different rules than the HST rebate.
Legal fees — your real estate lawyer's fees for reviewing the agreement, handling closing, and confirming Tarion warranty registration.
Development charges and Tarion enrollment fees — common on new builds, which could be a significant sum, and often itemized separately in the purchase agreement.
Status certificate review — if you're buying a condo, budgeting for a proper review of the building's finances and any pending special assessments.
None of these are reasons to skip the rebate. They're reasons to sit down with an experienced Realtor who can lay out the full closing cost picture next to the rebate savings, so the number you plan around is the real one.
Timing: the part buyers miss
New construction doesn't close the way resale does. You sign an agreement now, but the home might not be ready for a year or more. A few Ontario-specific process points that matter here:
The 10-day cooling-off period. Ontario's Condominium Act gives every pre-construction condo buyer 10 calendar days after receiving a fully signed agreement and disclosure documents to cancel the deal and get a full deposit refund — no reason required. It doesn't apply to resale or assignment purchases.
Tarion warranty coverage. Every new home in Ontario carries a Tarion warranty, but Ontario's own auditor general has flagged real gaps in how consistently claims get paid out and recovered from builders. It's worth going in with realistic expectations and a paper trail from day one, not assuming the warranty handles everything automatically.
The rebate's application window. You generally need to apply for the GST/HST rebate within two years of taking ownership or completion of construction — not two years from your signing date. On a home that takes 18 months to build, that window is closer than it looks.
This is exactly the kind of question we walk new-construction buyers through before they sign anything — not just "does this project qualify," but "does the timeline actually line up with the rebate rules."
Should you buy new construction or resale right now?
There's no single right answer, but the rebate does shift the calculation. If you're a first-time buyer who was leaning resale mainly because new construction felt more expensive upfront, it's worth re-running the comparison with this rebate in the mix — especially in neighbourhoods like Toronto, Markham, Vaughan, and parts of Etobicoke where new inventory is genuinely competitive with resale right now.
Your specific number depends on your home's price, your closing timeline, and how the builder has structured the agreement — that's where a local market analysis and a proper closing cost breakdown come in.
Frequently Asked Questions
Do I have to be a first-time buyer to get any HST rebate on a new home in Ontario?
The enhanced combined rebate (up to $130,000) is specifically for first-time home buyers. There is a separate, smaller GST/HST New Housing Rebate that isn't limited to first-time buyers, but it doesn't offer the same savings — we can guide you to figure out which program actually applies to your purchase and how much you can save.
Does the HST rebate apply to resale homes in Toronto?
No. It only applies to new or substantially renovated homes purchased from a builder, pre-construction condos, and owner-built homes intended as your primary residence. Resale homes bought through MLS don't qualify.
Is the rebate automatic, or do I need to apply for it?
You need to apply. Builders often credit part of the rebate at closing and handle the paperwork on your behalf, but you're generally required to apply within two years of taking ownership or completion — confirm the process with your lawyer before closing, not after.
How does this rebate interact with Toronto's Land Transfer Tax rebate for first-time buyers?
They're separate programs. The HST rebate reduces the tax on the purchase price; the Land Transfer Tax rebate (up to roughly $8,475 combined provincial and municipal) reduces a different closing cost entirely. A first-time buyer purchasing new construction in Toronto can generally use both.
What happens if my new build doesn't close before the rebate window ends?
The enhanced Ontario rebate applies based on when your agreement of purchase and sale was signed (April 1, 2026 – March 31, 2027), not your closing date, so a later closing on an agreement signed inside that window should still qualify — but this is exactly the kind of detail worth confirming with your lawyer given how new the legislation is.
If the numbers here have you rethinking new construction versus resale, or you just want someone to run your actual purchase against these rebates before you sign anything, we'd be glad to walk through it with you. And if financing is part of the picture, it helps to know that our team includes an in-house mortgage broker — Sedat Topcu — who can walk you through your options alongside the real estate side of things. It's one less thing to coordinate on your own.
About Beril & Sedat Homes
Beril & Sedat Homes is an award-winning real estate team serving Toronto and the Greater Toronto Area. Founders Beril Topcu and Sedat Topcu are bilingual — Turkish and English speaking — realtors with Royal LePage Signature Realty. With more than 20 years of combined experience, over $100 million in career sales volume, and more than 200 clients served, they help buyers, sellers, investors, and newcomers navigate Toronto and GTA real estate with confidence. Their expertise spans luxury homes, condominiums, detached homes, investment properties, downsizing, upsizing, and first-time home purchases. Recognized as Executive Circle members and ranked among the top 2% of agents, they're known for personalized guidance, strategic negotiation, and in-house mortgage support through Sedat Topcu, a licensed real estate broker and mortgage broker.