First Time Homebuilders Rebates

Up to $130,000 in HST Savings:
What Ontario's New HST Rebate Means for First-Time Home Buyers
Updated March 2026 — Federal Legislation Now Law

If you have been waiting for the right moment to buy your first new home in Ontario, that moment may have just arrived. On March 12, 2026, the federal government's Bill C-4 — the Making Life More Affordable for Canadians Act — received Royal Assent, officially making the First-Time Home Buyers' GST/HST Rebate the law of the land. Combined with Ontario's own proposed provincial HST rebate, eligible first-time buyers stand to save up to $130,000 on the purchase of a qualifying new home.

This is not a small tax adjustment. This is one of the most significant housing affordability measures in a generation, and if you are a first-time buyer in Ontario, it pays to understand exactly what is available, how it works, and what you need to do to qualify.

What Is the New HST Rebate?

Historically, the purchase of a new home in Ontario was subject to 13% HST — a 5% federal portion and an 8% provincial portion. While a partial rebate existed for homes under certain price thresholds, buyers of more expensive new homes still faced a significant tax bill at closing.

The new rebates change that picture dramatically for first-time buyers. Here is how the two layers of relief work together:

The Federal Rebate: Bill C-4 eliminates 100% of the 5% federal GST on new homes valued up to $1 million for qualifying first-time buyers — a saving of up to $50,000. For homes priced between $1 million and $1.5 million, the rebate is gradually phased out.

The Ontario Provincial Rebate: The Ontario government has proposed matching the federal measure by rebating the full 8% provincial portion of HST on new homes valued up to $1 million — a saving of up to $80,000. Combined with Ontario's existing HST New Housing Rebate of up to $24,000, first-time buyers could effectively eliminate the entire provincial HST on a qualifying purchase.

Together, for a first-time buyer purchasing a brand-new home at $1,000,000 in Ontario, the combined federal and provincial HST savings could reach $130,000. Even for a new home priced at $700,000, the combined savings would be approximately $91,000 — a transformative reduction in the cost of homeownership.

ESTIMATED HST SAVINGS BY PURCHASE PRICE
Home Purchase Price Estimated Total HST Savings
$500,000 Up to $65,000
$600,000 Up to $78,000
$700,000 Up to $91,000
$800,000 Up to $104,000
$900,000 Up to $117,000
$1,000,000 Up to $130,000$1,200,000 Partial rebate — phased out

$1,500,000+ Minimum $24,000 (existing rebate only)

Note: Estimates are approximate. Savings include both new federal and proposed Ontario provincial rebates combined with existing housing rebates. Subject to legislative approval.

Important Update: Federal Law Is Now in Effect

A crucial development for buyers: Bill C-4 received Royal Assent on March 12, 2026, meaning the federal GST rebate of up to $50,000 is now officially law. This is significant because it means eligible buyers who purchased a qualifying new home from a builder on or after March 20, 2025, can now formally apply to the Canada Revenue Agency (CRA) for their federal rebate.

However, if your home's ownership transferred before Royal Assent (i.e., before March 12, 2026), your builder was not able to credit the rebate directly at closing. In that case, you will need to apply to the CRA directly using Form GST190 — the GST/HST New Housing Rebate Application for Houses Purchased from a Builder. Do not delay in checking whether this applies to you, as there are filing deadlines.

For buyers whose ownership transfers after Royal Assent, builders will be able to credit the federal rebate directly at closing, reducing your purchase price at the time of the transaction rather than requiring a separate application.

Ontario's provincial rebate is still pending its own enabling legislation. Once passed, it is expected to align with the federal framework, and eligible buyers will be able to claim both rebates together.

Do You Qualify? The Eligibility Rules Explained

Both the federal and proposed Ontario rebates have consistent eligibility criteria. Here is what you need to know:

You must be at least 18 years old and a Canadian citizen or permanent resident at the time of purchase.

You must be purchasing the home as your primary place of residence — investment properties and rental homes do not qualify.

You must be a true first-time buyer, meaning you have not owned a primary residence — anywhere in the world — in the calendar year of the purchase or in any of the four preceding calendar years. For example, if you take ownership in 2026, you must not have owned a home in 2022, 2023, 2024, 2025, or 2026.

Your spouse or common-law partner must also not have owned a primary residence during your relationship. If they have previously claimed this rebate, you are no longer eligible.

The rebate can only be claimed once per lifetime. It is not a program you can use on your second or third purchase.

The purchase must be a newly built or substantially renovated home — resale properties do not qualify for these new rebates.

Your agreement of purchase and sale must have been entered into on or after March 20, 2025 (for the federal rebate), with construction beginning before 2031 and the home substantially completed before 2036.

Corporations cannot claim the rebate — all purchasers must be individuals. However, you can purchase with a non-first-time buyer, as long as you are a first-time buyer and will live in the home as your primary residence.

What Types of Homes Qualify?

The new rebates apply to newly constructed homes and substantially renovated homes only. This includes:

• Brand-new detached homes, semi-detached homes, and townhomes purchased from a builder
• New condominium units purchased from a developer
• Homes that have been substantially renovated (where the renovation is so extensive the home is effectively treated as new construction for tax purposes)
• Owner-built homes, subject to specific criteria including when construction began

Resale homes — previously owned properties — do not qualify for the new HST rebates, though first-time buyers of resale homes may still benefit from the Ontario Land Transfer Tax Rebate and other programs.

This distinction makes purchasing a brand-new home even more compelling for first-time buyers. Not only do you get a home that has never been lived in, with modern construction standards and builder warranties, but you now potentially save up to $130,000 in tax that simply would not be available on a comparable resale property.

Why This Changes the Conversation About New Homes

For years, one of the most common hesitations about buying a new-build home — particularly a pre-construction property — was the HST. Many buyers would compare a resale home to a new build and find that the tax burden made the new home feel significantly more expensive, even if the base prices were comparable.

That equation has now fundamentally changed. For a first-time buyer, the HST on a $750,000 new home was previously up to $97,500. With the combined federal and provincial rebates, that tax bill could drop to zero. The new home suddenly becomes not only competitive with resale — it becomes a dramatically better financial decision.

There are also timing advantages worth noting. Buying pre-construction or a newly built home now, while pricing in many Southern Ontario markets remains relatively accessible, could position first-time buyers to benefit from rising property values as the rebate stimulates demand and new construction activity in the years ahead.

What Should First-Time Buyers Do Right Now?

If you believe you may qualify for these rebates, here are the steps to take:

Confirm your eligibility. Review the criteria above carefully. If you are unsure whether your purchase qualifies, speak with a qualified real estate lawyer or tax advisor who is up to date on the latest rules.

Check your agreement of purchase and sale date. If you entered into an agreement after March 20, 2025 and have already taken ownership, you can now apply to the CRA for the federal rebate. Contact your real estate lawyer to begin the process.

If you are still shopping, act with confidence. Agreements entered into after March 20, 2025 on qualifying new homes are eligible for the federal rebate now that Royal Assent has been granted. Ontario's provincial rebate is expected to follow.

Ask your builder about the rebate process. Once both rebates are fully in effect, builders should be able to credit the savings directly at closing. Confirm with your builder how they plan to handle the rebate on your transaction.

Do not wait too long. The rebate window is open for agreements entered into before 2031. While that may feel distant, pre-construction timelines in Ontario can be long, and popular communities sell out quickly. Buyers who move early lock in today's pricing with tomorrow's tax benefit.

A New Home That Works for Your Budget — and Your Future

At Freure Homes, we have always believed that owning a quality new home should be within reach for Ontario families. The new HST rebate is a meaningful step in that direction, and we are here to help first-time buyers understand exactly how it applies to the homes we build across Southern Ontario.

Our communities in the Cambridge, Brantford, and surrounding areas offer freehold new homes built to the standard Harold Freure established — quality construction, thoughtful design, and a commitment to the homeowner that goes beyond closing day. With the new HST rebate now in effect federally and Ontario's provincial relief on the way, buying a Freure home as your first property could be one of the smartest financial decisions you ever make.

Contact the Freure Homes sales team today to find out which of our communities qualifies under the new rebate, and let us help you make the most of this historic opportunity for first-time buyers.

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax, or financial advice. While the federal First-Time Home Buyers' GST/HST Rebate received Royal Assent on March 12, 2026, Ontario's proposed provincial rebate is still subject to enabling legislation. Eligibility rules are subject to change. Please consult a qualified real estate lawyer or tax professional before making any purchasing decisions based on this information.