Buying a new home in Ontario has become significantly more affordable.

As part of the Ontario government’s proposed 2026 Budget, eligible purchasers of newly built homes can receive an enhanced HST rebate that effectively removes the full 13% Harmonized Sales Tax on qualifying homes. The program applies to new homes purchased between April 1, 2026 and March 31, 2027.

Under the proposed changes:

• New homes valued up to $1 million could qualify for a rebate of up to $130,000.
• The maximum rebate of $130,000 would remain available for homes valued up to $1.5 million.
• Homes valued above $1.5 million would still qualify for a reduced rebate, with the rebate gradually decreasing as home values increase
• Higher-value homes would continue to qualify for at least the rebate amounts currently available under existing rules.

The rebate is designed to improve housing affordability and help more Ontarians purchase newly built homes. Industry analysts suggest the measure could encourage additional housing construction across the province while making homeownership more accessible for many families.

In addition to the enhanced rebate for new homebuyers, Ontario has also announced measures intended to support the construction of new rental housing and housing-related infrastructure.

For prospective homeowners, the proposed changes could represent substantial savings on the purchase of a newly built home.

Interested in learning how these rebates could apply to your new home purchase? Contact Michael DeAngelis of Coldwell Banker Homefront Realty today to discuss current and upcoming opportunities and find out how much you could save.

Call Michael: Cell 519-754-6306 Office: 519-756-8120 or email at mike.de@rogers.com