Canadians buying a new home may soon qualify for an HST rebate

Doug Ford’s Progressive Conservatives, in concert with Mark Carney’s federal Liberals, announced today that they will offer an HST rebate to all buyers of newly constructed homes—not just first-time buyers purchasing newly built homes, as originally promised—on purchases of $1 million or lower, which will help house hunters save up to $130,000. A smaller rebate of up to $24,000 will be available for homes valued over $1.85 million.

The policy shift aims to stimulate an extra 8,000 housing starts in Ontario in the short term while supporting roughly 21,000 new jobs, Queen’s Park said in a release.

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“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” Ford said in a statement. “Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of home ownership and boosting Ontario’s economy by $2.7 billion.”

The HST rebate will be included in the province’s 2026 budget, to be announced tomorrow. Ottawa has agreed to remove the five per cent portion of the tax, though the deal is subject to the passage of federal legislation. The HST rebate, as planned, will be valid from April 1, 2026, to March 31, 2027.

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The province’s home sales were nearly 12 per cent lower in the first two months of 2026 compared with the same period in 2025, according to the Ontario Real Estate Association, even as selling prices continue to fall.