Ontario has announced an expanded HST rebate on new homes, marking a step in ongoing efforts to address housing affordability and support new development across the province.
The updated program extends beyond first-time buyers to include all eligible homebuyers. Under the proposed changes, the full 13% Harmonized Sales Tax (HST) would be removed on qualifying new homes valued up to $1 million, for a maximum rebate of $130,000. This maximum rebate would be maintained for homes valued up to $1.5 million, with the rebate gradually decreasing for higher-value properties. The expanded rebate is expected to run from April 1, 2026 to March 31, 2027.
While previous rebate programs were limited in scope, this broader approach reflects a shift toward making new housing more accessible to a wider range of buyers. It also aligns with a growing emphasis on increasing housing supply, particularly as market conditions continue to evolve.
Toronto’s real estate market has shifted in recent years, creating more choice and flexibility for buyers. At the same time, initiatives like the expanded HST rebate are helping make new homes more accessible, while supporting the continued growth of thoughtfully designed communities across the city.
Beyond affordability, the rebate may also play a role in shaping how buyers approach the market. With more time and choice available, today’s buyers are placing greater emphasis on long-term value, design, and livability. New homes, in particular, offer an opportunity to prioritize these factors, from thoughtful layouts to integrated amenities and proximity to transit and neighbourhood conveniences.
The introduction of this rebate also reflects the role of different levels of government working together to address housing challenges. By reducing upfront costs for buyers and supporting new housing supply, the program contributes to a broader effort to create more balanced and sustainable market conditions.
As details continue to emerge following the release of Ontario’s 2026 Budget, the expanded HST rebate is expected to be one of several measures aimed at improving access to homeownership while supporting the long-term growth of the housing market.
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