Insights · New builds
Buying a new-build in Ontario: which HST rebates are law, and what to confirm.
Two new rebates can change the cash you need at closing by tens of thousands of dollars. The dates in your agreement decide whether they apply.
What happened
Two changes affect the tax on a newly built home. Federally, a GST/HST rebate for first-time buyers of new homes became law in March 2026 for agreements signed on or after March 20, 2025; the Canada Revenue Agency describes it as worth up to $50,000. In Ontario, the province announced a wider rebate on March 25, 2026, of up to $130,000 for agreements signed with a builder between April 1, 2026 and March 31, 2027, and passed an enabling law, Bill 114, on May 12, 2026. The details of the Ontario rebate are set by regulation.
What it means for your mortgage
It changes your cash at closing
Whether a rebate is credited on closing day or claimed afterwards decides how much money you must bring. Ask before you budget.
It does not change what the lender asks for
The mortgage is set on the price and the appraisal. A rebate you receive later does not reduce the down payment required at closing.
The dates matter
As announced, the Ontario rebate depends on when the agreement was signed and on when construction starts and finishes. Changing an existing agreement only to qualify is likely not to work.
What to do now
- Ask your lawyer, in writing, which rebates apply to your agreement and whether the builder credits them at closing.
- Ask the builder for the price with and without the rebate.
- Run the closing-cost calculator, then add any tax your lawyer says you must fund yourself.
Sources
- Canada Revenue Agency: First-Time Home Buyers' GST/HST Rebate (March 2026)
- Legislative Assembly of Ontario: Bill 114, HST Relief Implementation Act, 2026
- Osler: Ontario's new HST rebate, key details
- Gowling WLG: Ontario expands HST relief eligibility for new home buyers
Information only. Not mortgage, financial or legal advice. Approval, rates and products depend on lender criteria, qualification and application. O.A.C. E.&O.E.