04/24/2026
NEW HOME HST REBATE
We’ve had a lot of questions around the New Home HST Rebate.
Here is a clear and practical update.
🏠 What This Rebate Actually Is (for those newer to it):
When you buy a newly built home in Ontario, HST (13%) is applied. Historically, a portion of that tax has been rebated back to the buyer, typically up to $24,000, and in most builder deals this rebate is assigned to the builder and built into the purchase price.
Example:
Base price: $550,000
HST (13%): $71,500
Rebate credit: $24,000
Final purchase price: approx $597,500
This is why many new build prices already appear net of rebate.
🏠 What’s New and why everyone is talking about it?
The government has announced an enhanced HST rebate intended to significantly increase the savings on new homes, potentially up to about $130,000 depending on price.
However, here are the key points:
- The policy has been announced in the Ontario budget.
- It still requires federal legislation and CRA implementation details.
- Lenders do not yet have formal guidance.
- Builders are already marketing and selling homes assuming this rebate.
That gap is exactly why there is confusion in the market right now.
🏠 What We Are Seeing from Lenders (real file behaviour)
There is no consistent approach yet:
Some lenders still qualify based on the full purchase price including HST, while others are accepting the net purchase price where the rebate is clearly built into the agreement and supported by the insurer.
Same deal, different outcomes depending on lender.
🏠 This is a real policy direction, not a rumour
It is not fully finalized yet, which is why lenders are not aligned
Builders are already selling it, but financing must be handled carefully.
🏠 This is where Mortgage Agents add value--understanding the details, structuring deals properly, and protecting clients from surprises is what sets us apart from the banks.
🏠 😇 Contact me to learn how to structure your purchase to ensure you benefit from the new rebate!!
