What Is the Ontario HST New Home Rebate?
The Ontario HST New Home Rebate is a federal housing incentive that took effect on April 1, 2026. It allows buyers of new construction homes to recover a significant portion — up to $130,000 — of the Harmonized Sales Tax (HST) paid at closing.
HST in Ontario is 13%: a 5% federal component and an 8% provincial component. On a new home priced at $1,258,000, that's more than $163,000 in tax. This rebate returns the majority of that cost directly to the buyer.
Before this policy, the HST New Housing Rebate was capped at homes priced below $450,000 — effectively excluding most of Ontario's new construction market. The 2026 expansion changes that entirely, extending eligibility up to $1.5 million.
Plain English: You're buying a new home. The builder charges 13% HST. Under this program, the government gives back up to $130,000 of that at closing. The builder handles the paperwork. You don't file anything separately.
Who Qualifies for the HST New Home Rebate?
One of the most important things to understand: this rebate is not limited to first-time home buyers. That's a common misconception. The HST New Home Rebate applies based on the property and transaction — not the buyer's history.
✅ You Qualify If… Eligible
- You are purchasing a brand-new construction home
- The home is priced up to $1.5 million
- You intend to use it as a primary place of residence (or a qualifying relative will)
- Your Agreement of Purchase and Sale (APS) is signed by March 31, 2027
- You are a repeat buyer, investor (for primary residence), or first-time buyer
- The builder is registered for HST and applies the rebate at closing
❌ You Don't Qualify If… Ineligible
- You are purchasing a resale (previously occupied) home
- The home is priced above $1.85 million (rebate reduces to existing $24K federal minimum above this threshold)
- Your APS is signed after March 31, 2027
- The property is a vacation home or investment property not used as primary residence
- The home is a substantially renovated home (different rules apply)
There is no income restriction and no cap on net worth. If the property and transaction meet the criteria above, the rebate applies.
How Much Can You Save?
The rebate amount is calculated based on the purchase price. For homes in the $1.0M–$1.5M range — which includes all units at Heathwoods at Lambeth — the maximum rebate of up to $130,000 applies.
HST Rebate by Purchase Price
| Purchase Price | Total HST (13%) | HST Rebate | Your Net HST |
|---|---|---|---|
| $900,000 | $117,000 | Up to $117,000 | ~$0–$17K |
| $1,000,000 | $130,000 | Up to $130,000 | ~$0 |
| $1,258,000 Heathwoods | $163,540 | Up to $130,000 | ~$33,540 |
| $1,400,000 | $182,000 | Up to $130,000 | ~$52,000 |
| $1,500,000 | $195,000 | Up to $130,000 | ~$65,000 |
| $1,500,000 – $1,850,000 | $195,000 – $240,500 | $24,000 – $130,000 (tapers down) | Varies |
| Over $1,850,000 | — | $24,000 (existing federal rebate only) | Remaining HST |
Note: The rebate amount is subject to the specific program terms and may vary based on your transaction structure. "Up to" figures are the maximum. Consult your real estate lawyer for your exact rebate calculation at closing. E.&O.E.
How Is the Rebate Applied? (Simpler Than You Think)
This is where buyers are often surprised: you don't claim the HST rebate yourself. The builder assigns the rebate to you at closing, and it's reflected directly in your purchase price or closing statement.
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Sign your Agreement of Purchase and Sale (APS) by March 31, 2027. This is the critical eligibility trigger.
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Provide your primary residence declaration. You'll confirm you intend to occupy the home as your principal residence (or a qualifying relative will).
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Builder assigns the rebate at closing. The builder applies for the rebate on your behalf and credits it against the purchase price or closing costs.
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No separate government filing required from you. Your real estate lawyer and the builder handle the mechanics. The savings show up in your final closing statement.
This is a significant structural advantage vs. other rebate programs that require buyers to file separately months after closing. With the HST rebate, the savings are immediate and built into your closing.
Key Deadline: March 31, 2027
The program has a hard cut-off. To qualify for the federal HST New Home Rebate under the current rules, your Agreement of Purchase and Sale must be signed on or before March 31, 2027.
Deadline: March 31, 2027
Your Agreement of Purchase and Sale (APS) must be signed and binding by this date. Closings can occur after this date — it's the APS signing date that matters for eligibility, not the occupancy or title transfer date.
The policy as enacted sets this deadline. There is no indication of an automatic extension. Buyers who miss this window will not qualify for the program as currently written.
Given that Heathwoods at Lambeth is in Phase 4 — the final phase — available lots are limited. Early signing ensures eligibility well within the window.
Why Every Unit at Heathwoods Qualifies for the Maximum Rebate
All units at The Heathwoods at Lambeth are priced at $1,258,000 — squarely within the $1.0M–$1.5M bracket that qualifies for the maximum rebate of up to $130,000.
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New construction. Heathwoods is a new build development — resale homes do not qualify, but all Heathwoods units do.
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Price point is within the eligible range. At $1,258,000, every unit is below the $1.5M ceiling and above $1.0M — the tier with the maximum $130K rebate.
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Builder handles the rebate at closing. No administrative burden on the buyer. The savings are built into your transaction from day one.
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Phase 4 is the final phase. Remaining lots are limited. Signing now locks in both your unit and your eligibility deadline with time to spare.
Frequently Asked Questions
Is the HST rebate the same as the First-Time Home Buyer Incentive?
No. These are completely separate programs. The First-Time Home Buyer Incentive is a shared-equity scheme administered through CMHC. The HST New Home Rebate is a tax rebate on the HST charged at closing. They have different eligibility rules, and the HST rebate does not require you to be a first-time buyer.
Can investors claim this rebate?
The rebate is specifically designed for homes used as a primary place of residence — either by the buyer or a qualifying relative. Investment properties intended for rental do not qualify under the standard residential rebate. Consult your tax advisor for your specific situation.
What if my closing is after March 31, 2027?
The deadline applies to the signing date of your Agreement of Purchase and Sale — not the closing date. If you sign your APS on or before March 31, 2027, you qualify even if the home closes after that date. This is particularly relevant for pre-construction purchases where closing may be 12–24 months after signing.
Do I need to claim the rebate separately after closing?
No. The builder applies for the rebate on your behalf and assigns it to you at closing. It's reflected directly in your closing costs. You don't file a separate government form after the fact.
Is the $130,000 guaranteed?
The rebate is described throughout as "up to" $130,000 per RECO requirements. The exact amount is calculated based on the purchase price and program formula and confirmed through your real estate lawyer at closing. E.&O.E.
Explore The Heathwoods at Lambeth
Confirm Your Eligibility Before the Deadline
All Heathwoods units are priced at $1,258,000 — the maximum HST rebate bracket. Reach out now and we'll walk you through exactly how the rebate applies to your purchase.
Disclaimer: All savings figures are "up to" maximums and are subject to eligibility criteria, program terms, and your specific transaction. The HST New Home Rebate is a federal program — eligibility and rebate amounts should be confirmed with your real estate lawyer and/or tax advisor. The $130,000 combined rebate consists of the Ontario portion (up to $80,000, in effect) and the federal portion (up to $50,000, committed by the federal government but pending final legislation). Rebate tiers: homes $1.0M–$1.5M qualify for the maximum $130,000; homes $1.5M–$1.85M receive a tapered rebate; homes over $1.85M receive the existing federal rebate of $24,000. Information on this page reflects the program as announced effective April 1, 2026. E.&O.E. Not intended to solicit buyers or sellers currently under contract with another brokerage. Represented by Prime Real Estate Brokerage. Justin Konikow, Real Estate Salesperson.