Something unusual happened in Ontario’s new-home market this spring: sales more than doubled. According to a joint report from the Building Industry and Land Development Association (BILD) and the Ontario Home Builders’ Association (OHBA), based on Altus Group data, 8,410 new homes were sold across Ontario in the second quarter of 2026, up 130% from 3,645 a year earlier.
The reason wasn’t falling prices or a sudden shift in interest rates. It was a tax change. As of April 1, 2026, Ontario, working with the federal government, began removing the HST on qualifying new homes for a limited time. The measure applies to all eligible buyers, not just first-time buyers.
If you’ve been thinking about a newly built home in Pickering, Ajax, Whitby, Oshawa or anywhere in Durham Region, this is worth understanding, because the window to sign an eligible agreement is scheduled to close on March 31, 2027.
What You Need to Know
Here are the key features of the enhanced rebate, based on information published by the Ontario government, TRREB and professional tax advisories:
It covers the full 13% HST on qualifying new homes up to $1 million. That works out to a maximum of $130,000 in relief. Homes priced between $1 million and $1.5 million can still qualify for up to the same $130,000 maximum, and reduced amounts apply between $1.5 million and $1.85 million.
It’s open to all eligible buyers. Earlier rebate enhancements announced in 2025 focused on first-time buyers. The measure that took effect April 1, 2026 broadens eligibility, so move-up buyers and downsizers purchasing new construction may also qualify.
It’s temporary. To qualify under the all-buyers measure, the agreement of purchase and sale generally needs to be signed between April 1, 2026 and March 31, 2027. Construction must begin before January 1, 2029, with substantial completion required within set deadlines. First-time buyers have a separate, longer-running rebate stream with its own dates and conditions.
Conditions apply. The home generally needs to be a qualifying new home (purchased from a builder, owner-built, or through shares in a co-operative housing corporation) and used as a primary place of residence. Certain qualifying rental properties may also be eligible under separate conditions.
The fine print is still settling. At the time of writing, aspects of the program were still being finalized, including the federal regulations and application forms that determine how and when buyers actually receive the relief, and whether a builder can credit it at closing. Before relying on the rebate in your budget, confirm the current status and how it would apply to your specific purchase.
The market has noticed, unevenly. Industry data and news reports indicate the rebound has been driven largely by single-family homes, while new condo sales have remained sluggish.
What This Means for You
If you’re buying: For the right buyer, this is a meaningful affordability change on new construction, but the details decide everything. The price of the home, the date the agreement is signed, how the purchase is structured and how you’ll occupy the home all affect eligibility. It’s also important to compare the full picture of a new-construction purchase (deposits, timelines, completion risk and closing costs) against buying resale, rather than deciding based on the rebate alone.
If you’re an investor: Certain qualifying new rental properties may be eligible under related provisions with different deadlines. This is an area where professional tax advice matters before you commit.
If you’re selling a resale home: A tax break on new construction means some buyers in your price range are comparing your home against a newly built one with HST relief attached. That doesn’t diminish the real advantages of resale: established neighbourhoods, mature lots, and no construction wait. But it’s useful context when setting price and strategy over the coming months. If you’re weighing your own options, our Affordable Homeownership Opportunities Across the GTA article looks at the broader affordability picture.
The Marticorena Group Perspective
Durham Region continues to see significant new-construction activity, which is exactly why this measure deserves local attention rather than just headlines. In my experience, the rebate question is rarely the whole decision. It sits alongside timing, financing, the new-versus-resale trade-off and what a family actually needs from the home. A large incentive with a deadline can create pressure to move quickly; good decisions still come from understanding the full picture first.
One honest caution: tax programs like this have detailed eligibility rules, and the enhanced rebate’s administrative details were still being finalized at the time of writing. I’m not a tax professional, and this article is general information rather than advice about your situation. What I can do is help you think through the real estate side, whether new construction or resale better fits your plans, and connect you with a trusted mortgage professional or suggest you speak with a qualified tax advisor for the eligibility questions.
Key Takeaway
Ontario is temporarily removing the HST on qualifying new homes, up to $130,000 in relief, for eligible agreements signed between April 1, 2026 and March 31, 2027. The measure now extends to all eligible buyers, not just first-time buyers, and new home sales have already responded sharply. If a newly built home is on your radar for the next year, understand the window, the price tiers and the conditions before you sign, and verify the program’s current status, since some details were still being finalized.
Thinking About New Construction in Durham Region?
If you’re weighing a newly built home against a resale purchase, or wondering how this rebate window fits into your longer-term plans, I’m always happy to be a resource. Let’s talk through the real estate side of the equation so you can make the decision with clear information, or explore what’s currently available across Durham Region.
This article is general information current as of August 2026 and is not tax, legal or financial advice. Program details, eligibility rules and deadlines can change; confirm current details with the Canada Revenue Agency, the Government of Ontario or a qualified tax professional.
Sources: BILD/OHBA new home sales report (Q2 2026, Altus Group data); TRREB, “2026 HST New Home Buyer Rebate”; Government of Canada, Department of Finance (First-Time Home Buyers’ GST Rebate); PwC and Osler tax advisories on Ontario’s enhanced HST relief.
