Ontario buyers of new construction homes can now receive up to $130,000 in HST savings at closing — applied directly by the builder, no government filing required. The 2026 Ontario HST New Home Rebate launched April 1, 2026 and created one of the largest buyer incentives the province has ever seen for new housing. There is no first-time buyer restriction.
This guide breaks down exactly how the rebate works, who qualifies, how the math works at different price points, what the March 2027 deadline means in practice, and how Heathwoods buyers at Lambeth can combine this rebate with the builder incentive for $230,000 in total savings.
What Is the Ontario HST New Home Rebate?
In Ontario, new construction homes are subject to the Harmonized Sales Tax (HST) at 13%. On a $1.3 million home, that's approximately $169,000 in HST owed at closing. For years, this represented a major friction cost for new home buyers — a tax bill that arrived on top of the purchase price.
The 2026 rebate dramatically changes that math. It combines two portions:
- Ontario Provincial Portion — up to $80,000. Currently in effect.
- Federal Portion — up to $50,000. Committed by the federal government, pending final legislation.
Together, these provide up to $130,000 in rebated HST for buyers of homes priced between $1.0M and $1.5M. The rebate is applied by the builder at closing — it comes off your closing costs before you pay, not as a refund you claim afterward.
The rebate is not a tax refund you file for. Your builder deducts it from what you owe at closing. If your closing costs include $163,000 in HST on a $1,258,000 home, the builder applies the $130,000 rebate and you pay roughly $33,000 net HST — automatically.
Who Qualifies for the Rebate?
Eligibility is straightforward. The four requirements are:
| Requirement | What It Means | Applies at Heathwoods? |
|---|---|---|
| New construction | Home must be newly built — not a resale property | ✓ Yes — all Heathwoods homes are new builds |
| Price eligibility | Full $130K rebate for homes $1.0M–$1.5M; tapers $1.5M–$1.85M; existing federal rebate ($24K) above $1.85M | ✓ Yes — all Heathwoods units start at $1,258,000 |
| Primary residence | Buyer or a qualifying relative must intend to use it as their primary place of residence | ✓ Typically yes — owner-occupiers and buyers for qualifying relatives both qualify |
| APS deadline | Agreement of Purchase and Sale must be signed by March 31, 2027 | ✓ Yes — lots are available now; APS can be signed immediately |
No first-time buyer restriction. Repeat buyers qualify on the same terms as first-time buyers. There is no income restriction, no wealth cap, and no limit on how many times a buyer has purchased property before.
How Much Is the HST Rebate? The Math at Every Price Point
Ontario HST is 13% of the purchase price. Here's how the rebate plays out across the price spectrum relevant to Heathwoods buyers:
| Purchase Price | Total HST (13%) | Rebate Applied | Net HST Paid | Effective HST Rate |
|---|---|---|---|---|
| $1,000,000 | $130,000 | $130,000 | $0 | 0% |
| $1,258,000 (Heathwoods) | $163,540 | $130,000 | $33,540 | ~2.7% |
| $1,400,000 | $182,000 | $130,000 | $52,000 | ~3.7% |
| $1,500,000 | $195,000 | $130,000 (max) | $65,000 | ~4.3% |
| Savings vs. no rebate | $130,000 back at closing — no filing, no wait | |||
The March 31, 2027 Deadline — What It Actually Means
The deadline applies to when your Agreement of Purchase and Sale (APS) is signed — not when you close. This is a critical distinction. If you sign your APS in December 2026 but don't close until March 2027, you qualify. The rebate is captured at the time of APS signing.
What this means practically: you have until March 31, 2027 to get your APS signed. Most new construction purchases take 60–120 days from APS to closing, so buyers targeting the full rebate should aim to have their APS signed well before the deadline to allow time for mortgage approval, inspections, and the legal close process.
At The Heathwoods at Lambeth, only 4 lots remain in Phase 4 — the final phase. Waiting until early 2027 risks losing lot availability entirely. The HST deadline and lot scarcity are two separate urgencies working in the same direction.
How the Rebate Is Applied: Step by Step
Sign your Agreement of Purchase and Sale
Your APS must be signed by March 31, 2027. This is the qualifying event for the rebate — not your closing date.
Builder confirms rebate eligibility
Your builder (in this case, Halcyon Built) confirms that the home and purchase qualify under the rebate program. At Heathwoods, all units at $1,258,000 are pre-confirmed eligible.
Rebate deducted at closing
Your real estate lawyer receives the closing statement with the full HST amount and the rebate deducted. The net HST you pay is the result — no separate government claim, no refund cheque later.
Keys and savings in hand
You take possession of your home with $130,000 in HST rebate already captured. At Heathwoods, the combined savings including builder incentive total $230,000.
Combining the HST Rebate With Builder Incentives
The HST rebate and builder incentives are separate programs — and they stack. At The Heathwoods at Lambeth, buyers can combine both for a total of $230,000 in savings at closing:
The Ontario HST Rebate is a government program. The $100,000 builder incentive is a direct discount from Halcyon Built. Both are applied at closing through your lawyer's trust account. No double-dipping restrictions apply — these programs were designed to operate independently and simultaneously.
All rebate figures are "up to" amounts. The federal portion of the rebate ($50,000) is committed by the federal government and pending final legislation. Exact rebate amounts depend on final purchase price and applicable legislation at time of closing. Speak with your real estate lawyer for exact figures.
Common Questions Buyers Ask
Does the rebate reduce my mortgage amount or come off closing costs?
It comes off your closing costs. The builder presents a statement at closing that shows the full HST and deducts the rebate — what you owe is the net figure. It doesn't reduce your mortgage principal directly, but it reduces the cash you need at closing, which has the same financial effect.
What if I'm buying for investment or rental?
To qualify for the primary residence portion of the rebate, the buyer (or a qualifying relative) must intend to use the property as their primary residence. Pure investment purchases without a qualifying resident don't access the full rebate. Consult your lawyer for the specifics of your situation.
Do I need to do anything to claim the rebate?
No action is required from the buyer. The builder is responsible for the rebate assignment and deducts it at closing. Your lawyer confirms the figures. You simply review and sign your closing statement.
Is the rebate the same in every Ontario city?
Yes. The Ontario HST New Home Rebate is a provincial program that applies uniformly across Ontario — London, Toronto, Lambeth, Ottawa, Hamilton. The same eligibility rules and rebate amounts apply regardless of where in Ontario the new home is located.
Full Rebate Breakdown
Detailed page on the Ontario rebate with tiered savings, eligibility table, and at-closing process.
Calculate Your Savings
Enter your home price and down payment — see HST rebate + mortgage impact side by side.
12 Buyer Questions Answered
First-time buyer requirements, lot availability, model specs, and buying process explained.
New Homes Near London
Heathwoods is 15 minutes south of London in Lambeth — with $230K in savings.