If you’ve been following along, I recently talked about the federal GST rebate for first-time buyers. Now, there’s a much bigger update — and this one applies to far more people.
The Ontario government has introduced a new rebate that can eliminate the full HST on newly built homes, and for a limited time, it’s available to all buyers — not just first-time buyers.
What Ontario Just Announced
As of April 1, 2026, Ontario is temporarily removing the 8% provincial portion of HST on new homes.
But it goes a step further.
For this one-year window, Ontario is also working with the federal government to cover the 5% GST portion as well — meaning buyers can eliminate the full 13% HST on eligible new builds.
That’s a major shift, especially for move-up buyers, downsizers, and even investors who were previously left out.
This Isn’t Just for First-Time Buyers
This is the biggest difference from the federal program. The federal GST rebate is limited to first-time buyers only.
Ontario’s new rebate, however, is open to:
- First-time buyers
- Existing homeowners
- Investors purchasing rental properties
For this one-year period, everyone gets access to the same HST savings on new construction.
How Much Could You Save?
On a $900,000 newly built home in Ottawa, the HST savings could be well over $100,000.
That can completely change how a purchase looks. Lower cash needed at closing, lower mortgage balance, and more flexibility in your budget.
This is one of the largest incentives I’ve seen for new construction in years.
The Timing Is Critical
This rebate is temporary. To qualify, your purchase agreement needs to be signed between April 1, 2026 and March 31, 2027. Miss that window, and you may fall back to the standard rules, where only first-time buyers qualify for partial relief.
What Homes Qualify?
This applies only to newly built homes or substantially renovated properties. It does not apply to resale homes.
So if you’re deciding between new build and resale in Ottawa, this rebate can significantly tilt the numbers toward new construction.
How the Rebate Works at Closing
In most cases, you won’t have to apply for anything after the fact. The rebate is typically applied right at closing, where the builder credits it on your statement of adjustments.
That means less money out of pocket upfront. Still, I always recommend confirming this with your builder and your lawyer so there are no surprises.
The Benefit for Ottawa Buyers
This is opening up opportunities for a lot of people who didn’t qualify for the federal program.
I’m anticipating seeing more:
- move-up buyers reconsider new builds
- investors looking more seriously at rental properties
- buyers re-running their numbers because affordability just improved
But at the same time, this kind of incentive can increase demand — which can push prices higher if supply doesn’t keep up.
My Advice as Your Mortgage Broker
This is one of those rare windows where policy actually creates a real financial advantage. But like anything in real estate, it only works if it fits your situation.
If you’re considering a new build in Ottawa, this is the time to:
- Understand what you qualify for
- Look at your numbers properly
- Make a plan before you start shopping
Because the buyers who benefit the most from opportunities like this are the ones who are prepared early — not reacting late.
And if you want help figuring out how this fits into your plan, I’m always happy to walk you through it.
