This article is brought to you by SanDiego Homes.
If you have been in the market for a house, you may have heard people talking about getting $130,000 off a new home.
It sounds almost too good to be true. Especially when it seems like nobody can give you a straight answer about it yet.
Here's the thing: the program is very real and very significant, but it's also still working its way through legislation. That's created a lot of confusion in the market, and buyers deserve a clear picture of exactly where things stand.
Here's what we know about the Enhanced HST New Housing Rebate, what's still pending, and what you should be doing right now.
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The short version
- Ontario and the federal government are temporarily removing the full 13% HST on qualifying new homes, which means you could get up to $130,000 in savings.
- The Enhanced HST Rebate applies to agreements of purchase and sale (APS) signed between April 1, 2026 and March 31, 2027.
- Ontario's side is now law. The matching federal changes that let the full rebate actually flow aren't finalized yet, and applications haven't opened.
- You don't lose out by signing during the window, because eligibility is tied to the date on your APS. But how your builder handles the wait makes a real difference, and we'll get to that.
What the rebate actually is
New homes come with HST. Resale homes don't. That's the part a lot of buyers don't realize until they're deep into the math.
HST on a new home is 13%, made up of 5% federal and 8% provincial. On a $700,000 build, that's roughly $91,000 in tax added to your price.
Until now, the federal portion of the New Housing Rebate disappeared entirely above $450,000, and the Ontario portion was capped at $24,000, so most buyers around here were leaving the vast majority of the tax on the table.
On March 25, 2026, Premier Doug Ford announced that Ontario would temporarily remove the full 13% HST on newly built homes for a one-year window. On March 30, 2026, Prime Minister Mark Carney signed the Canada-Ontario Partnership to Build, confirming federal cost-sharing.
Together, the two governments are aiming to deliver up to $130,000 in combined HST relief on eligible new home purchases. That's the HST on a $1-million home, completely eliminated. Finance Minister Peter Bethlenfalvy called it "a one-year sale" and that's a pretty accurate way to put it.
How much you can save
The rebate amount depends on the purchase price of your new home:
- Homes priced at $1 million or less: Full 13% HST rebated (up to $130,000 in savings)
- Homes priced between $1 million and $1.5 million: Maximum $130,000 rebate
- Homes priced between $1.5 million and $1.85 million: Gradually reduced rebate, declining from $130,000 down to $24,000
- Homes priced above $1.85 million: Minimum $24,000 (the same as under the old rules)
For most buyers in Simcoe County, this means the full Enhanced HST Rebate is on the table.
Who and what qualifies
The rebate is for a newly built or substantially renovated home you buy from a builder, or one you build yourself. It needs to be your primary residence, though there's a parallel rebate that covers qualifying long-term rentals too.
A few conditions have to line up:
- Your APS is signed between April 1, 2026 and March 31, 2027.
- For builder-built homes: Construction has to begin by December 31, 2028 and be substantially finished by December 31, 2031.
- For owner-built homes: Construction has to begin within the APS window and be substantially finished by December 31, 2029.
Resale homes don't qualify, since they aren't charged HST in the first place.
What's confirmed
For this rebate to fully come into play, there are two parts that need to be passed into law: the provincial portion and the federal portion.
The good news is Ontario has passed its part. The HST Relief Implementation Act (Bill 114) received Royal Assent in May 2026. That means the province now has the legal authority in place for its 8% portion, plus a top-up worth up to $50,000 that stands in for the federal 5%.
There are a few different rebate programs available, so it's worth asking an accountant or a real estate lawyer about your own situation to see what your best option would be.
What's still up in the air
Ontario has signed off, and the federal government has promised the money. But the federal government hasn’t passed the amendments and regulations under the Excise Tax Act. That means the rules for actually handing it out still have to be put in place. Until that happens, two things are true for buyers:
- You can't apply for the rebate yet. There's no form to fill out and nowhere to send it.
- Most builders will not take it off your price at closing yet. Normally a builder could knock the rebate off what you pay up front, but that option isn't on the table until the federal rules are final.
So the program is approved and the money is set aside. The piece that's missing is the system that actually gets the rebate into your hands.
Is it safe to buy before it's final?
Yes, but with your eyes open.
Eligibility is tied to the date you sign your APS, not the date you close. If you sign inside the window and meet the conditions, you're in line for the Enhanced HST Rebate once the program goes live, even though you can't apply today.
The risk isn't whether you'll qualify. It's the timing gap between when you close and when the rebate actually becomes claimable.
How builders are handling the wait
Because the federal piece isn't final, builders are dealing with that gap in different ways. It's worth knowing them, because the one your builder picks directly shapes your risk.
Here's a breakdown of the approaches being used in the market:
1. Builder absorbs the risk upfront
Some builders, including SanDiego Homes, have chosen to take on the risk themselves. If the federal legislation doesn't pass and you're unable to either assign the rebate or come up with the $130,000 at closing, they will provide a full refund of your deposit so you can walk away. This approach gives buyers the most protection.
2. Agreements signed without a confirmed closing date or purchase price
Some builders are entering into agreements based on the assumption that the rebate will pass, leaving the final price or closing date to be confirmed once the legislation is in place.
3. Agreements with cancellation clauses
Other builders include clauses that allow either party to cancel if the legislation doesn't pass, with the option to re-sign at a negotiated purchase price.
4. Buyer applies for the Enhanced HST Rebate after closing
Some agreements are being written with the expectation that the buyer will apply for the enhanced HST rebate themselves after closing, meaning the $130,000 would not be credited upfront but claimed later through the Canada Revenue Agency.
Each approach carries different levels of risk and financial exposure for the buyer. Before signing any APS right now, make sure you understand exactly which structure your builder is using, and have a real estate lawyer review the HST clauses in your agreement.
What to do before you sign
A few things are worth slowing down for if you're considering a new build in the April 1, 2026 to March 31, 2027 window:
- Watch the APS date above all else. Your eligibility is tied to the day you sign your agreement, not the day you close. Sign on March 31, 2027 and you're in. Sign on April 1, 2027 and you're back to the old $24,000 cap.
- Ask your builder how they're handling the rebate, and get it in writing. Find out exactly which approach they're using, then have a real estate lawyer review the HST clauses before you sign: who claims the rebate, what happens if it's delayed, and whether your deposit is protected.
- If it's an assignment, check both dates. The original agreement (between the first buyer and the builder) and your assignment agreement both have to be signed inside the window. If either one falls outside it, the rebate won't apply. And the assignment premium itself is still taxable.
- Keep everything. Hold onto your signed APS, all your builder correspondence, and your closing documents. The CRA may want them to confirm your APS date and that the home is your primary residence.
- Don't spend the savings before they're confirmed. Until the federal side is final, treat the rebate as expected, not guaranteed at closing, and make sure your financing works either way.
- Keep an eye on the federal side. The last piece is Ottawa finalizing its rules. We'll update this article when that happens and applications open.
Where this leaves you
If you're shopping for a new home in the Barrie and Simcoe County area, this is one of the best affordability windows we've seen in more than a decade. But it rewards buyers who go in informed.
Run your numbers on real homes. Ask any builder straight out how they handle the rebate gap. And get a lawyer's eyes on the HST terms before you sign.
The savings are real. The paperwork just needs to catch up.
FAQ about the HST New Housing Rebate
Do I have to be a first-time buyer?
No. The bigger program covers all buyers of qualifying new homes. There's also a separate federal rebate just for first-time buyers that's already up and running.
Probably not. As long as the date on your agreement falls inside the April 1, 2026 to March 31, 2027 window, you're likely in line. Check the date and talk to your lawyer.
Yes it can but there will most likely be stipulations with builders in case it doesn’t pass legislation at the time of closing
No. The rebate is only for new builds and substantially renovated homes. Resale homes aren't charged HST to begin with.
This is a moving target. Ontario's part is done, and the federal part is expected to follow. We'll update this article as the rest is confirmed and applications open.
This article is for general information only and isn't legal or tax advice. The rules and amounts depend on your own situation, so check with a real estate lawyer or a tax professional before you sign or file.
