HST Rebate Expansion for New Homes

by CONNOR MCLEOD

HST Rebate Expansion for New Homes

March 25, 2025 – Cornerstone Association of REALTORS® (Cornerstone) welcomes today’s announcement from the Ontario government to expand the HST rebate to all eligible buyers of new homes as part of the upcoming 2026 Ontario Budget. In partnership with the Federal government, eligible buyers would receive a rebate of the full 13 per cent of HST on new homes valued up to $1 million, with purchase agreements signed by March 31, 2027.

In our pre-budget submission to the Province, Cornerstone called for practical measures to help more Ontarians achieve their dream of homeownership, including the removal of the provincial portion of the HST for all new homebuyers, not just first-time buyers.

The maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million and would decrease proportionally thereafter to $1,850,000, where homes at that price point and beyond would receive a $24,000 rebate. This announcement reflects key priorities we have been actively advancing on behalf of our 7,500 REALTOR® members and the communities they serve.

Proposed HST Rebate for Eligible New Home Buyers

New Home Value Range	Rebate Mechanism	Maximum Rebate Amount
Up to $1 Million	Full 13% Rebate	$130,000
$1 Million to $1.5 Million	Full 13% Rebate (Capped)	$130,000
$1.5 Million to $1.85 Million	Decreases Proportionally (Starts at $130,000)	$130,000 down to $24,000
$1.85 Million and Above	Fixed Maximum Rebate	$24,000