Ontario’s expanded HST rebate—developed in partnership with the federal government—represents one of the most significant affordability measures introduced for new‑home buyers in recent years. Designed to reduce the tax burden on new construction and stimulate housing supply, the program provides substantial financial relief for eligible purchasers while setting clear timelines and valuation thresholds.
Eligibility Window and Construction Deadlines:
To qualify for the enhanced rebate, buyers must enter into a purchase agreement with a builder between April 1, 2026 and March 31, 2027. This one‑year window is critical, as only agreements signed during this period fall under the expanded rebate rules. Once the agreement is in place, the construction timeline becomes the next determining factor. For homes purchased as primary residences, construction must begin no later than December 31, 2028 and must be substantially completed by December 31, 2031. These deadlines ensure that the rebate supports active, near‑term housing development rather than long‑delayed or speculative projects.
Rebate Amounts and Valuation Limits:
The enhanced rebate removes the full 13% HST on qualifying new homes up to a maximum of $130,000, representing the combined provincial and federal portions of the tax. This maximum applies to homes valued up to $1.5 million, offering broad relief across a wide range of new‑build price points.
For homes priced between $1.5 million and $1.85 million, the rebate does not disappear abruptly; instead, it declines proportionally from the full $130,000 down to $24,000, which reflects the existing provincial rebate available under prior rules. This gradual reduction ensures fairness and predictability for buyers in higher‑value segments. Homes valued above $1.85 million continue to qualify only for the longstanding provincial rebate of $24,000, as the enhanced program does not extend beyond that threshold.
Purpose and Impact of the Program:
The expanded rebate is intended to make new homes more attainable for families and to encourage builders to accelerate housing starts across Ontario. By temporarily eliminating the full HST on a broad range of new homes, the program is expected to reduce upfront costs, stimulate construction activity, and support economic growth. Government projections estimate thousands of additional housing starts and significant GDP gains during the rebate period.
LATIF NIZAMANI Realtor 
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