The Ontario New-Home HST Rebate: Deadlines, Traps and a Pre-Signing Checklist
Up to $130,000 back on a new home, but only if you sign by March 31, 2027 and the building meets its deadline. How it works for owners and investors.
Emil Vojkollari
Buying a newly built home in Ontario right now can save you as much as $130,000 in HST, the entire 13% tax on a $1 million purchase. It's one of the biggest incentives I've seen for new-home buyers. But the rules have deadlines baked in, and they work very differently depending on whether you plan to live in the home or rent it out.
The key date: March 31, 2027
To qualify for the combined federal and provincial relief, your agreement of purchase and sale with the builder has to be signed between April 1, 2026 and March 31, 2027. That leaves roughly four and a half months.
Two buyers, two timelines
Buying a home to live in
Agreement signed in the window above
Construction must begin no later than December 31, 2028
The home must be substantially complete no later than December 31, 2031
Buying a home to rent out
Agreement signed in the window above
The home must be substantially complete no later than December 31, 2029
Why investors are skipping pre-construction
High-rise condos usually take four to five years from shovels in the ground to move-in. If a tower hasn't started yet, it's not going to be done by the end of 2029. That shuts most pre-construction projects out of the rental rebate, and investors are traditionally the group that buys most pre-construction condos in the GTA.
You can see it in the data. According to Urbanation, completed buildings accounted for 85% of GTHA new condo sales in Q3 2026, while only 60 pre-construction units sold all quarter. Investor dollars are going where the rebate works: finished and almost-finished buildings.
Owners have a longer runway
If you'll be living in the home, you have until the end of 2028 for construction to start and the end of 2031 for it to be finished. That keeps many pre-construction projects on the table for you, as long as the builder actually breaks ground on time. That's the risk to scrutinize.
Read the price carefully
Builders aren't all treating the rebate the same way:
Rebate built into the price: the builder credits the relief at closing, so the listed price already accounts for it.
Rebate only partly reflected: some builders haven't lowered prices by the full amount. Two similar-looking prices can hide very different deals.
Pay first, claim later: some builders have you pay the HST on closing and then recover it from the CRA yourself. Investors claiming the rental rebate are reimbursed this way too. Budget for the cash you'll need in the meantime.
Here's why it matters. In Q3, individual buyers paid an average of $1,045 per square foot for new condos, a figure that includes HST. Remove the tax and it's about $925, only around 7% above resale prices in recently registered buildings (Urbanation, Q3 2026). Once you compare net prices, new construction looks a lot more competitive.
Pre-signing checklist
Which rebate applies to you? Owner-occupied or rental. The deadlines differ.
Where is construction today? Has it started? What's the honest completion estimate, and does it clear your deadline with room to spare?
How much of the project has sold? Builders usually need roughly 70% sold before lenders fund construction. If the project stalls, so does your rebate.
How is the HST handled? Credited by the builder at closing, or paid by you and claimed back from the CRA?
What's the net price? Take out the HST and compare it with similar resale units nearby.
Has a real estate lawyer reviewed it? Do this within the cooling-off period. Eligibility depends on your circumstances and the agreement's terms.
My take
For people buying a home to live in, this is real money and worth acting on before the window closes. For investors, look at completed or nearly completed buildings, where the rebate fits and builders are already sharpening their pricing.
If you'd like help figuring out which projects qualify for you and what you'd truly pay after the rebate, reach out. I work through these numbers with clients every day.
General information only, not tax or legal advice. Confirm your eligibility with a lawyer or accountant before signing. Market data: Urbanation Inc., GTHA Condominium Market Report, Q3 2026.
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