The short answer
Ontario is temporarily removing the 8% provincial portion of HST on new homes, worth up to $80,000 on a home priced at $1 million or less. Combined with a proposed federal match, total relief could reach $130,000 on homes between $1 million and $1.5 million. To qualify, your Agreement of Purchase and Sale has to be signed between 1 April 2026 and 31 March 2027, and the home has to be your primary residence or a qualifying long-term rental.
If you have been comparing pre-construction in Oakville against a resale detached home and the HST math has always tipped things toward resale, run the numbers again. The rules just changed, and they changed in a way that is worth your attention if you are a move-up buyer eyeing new construction, or a first-time buyer who assumed new builds were out of reach.
What actually changed
For the past several years, Ontario’s new housing rebate topped out around $24,000 on new-build purchases. That number barely moved the needle on a $900,000 townhome.
Starting 1 April 2026, that changes for one year:
| Purchase price | Provincial rebate |
|---|---|
| Up to $1,000,000 | Full 8% provincial portion, up to $80,000 |
| $1,000,000 – $1,500,000 | Holds flat at $80,000 |
| $1,500,000 – $1,850,000 | Phases out gradually |
| Above $1,850,000 | Back to the standard $24,000 rebate |
Combined federal and provincial relief could reach $130,000 on qualifying homes, though the federal matching piece is not locked in yet.
The catch is the timing. Your Agreement of Purchase and Sale needs to be signed on or after 1 April 2026, and on or before 31 March 2027. Miss that window and you are back to the old rules. This applies whether you are buying from a builder or building your own home, and it works for a primary residence or a home you are buying as a long-term rental.
I have been fielding this question constantly since the announcement — buyers want to know if it is real, whether it applies to their price range, and whether it is actually worth restructuring their search around. Fair questions. Here is the honest answer.
What this means if you are shopping new construction in Oakville
Oakville has real new-construction inventory sitting right in the sweet spot of this rebate — townhomes and mid-rise condos in the $800,000 to $1.5 million range are exactly what most of my move-up buyers and first-time buyers are looking at anyway. And there is more coming: the transit-oriented lands around the Oakville GO station alone are slated for close to 7,000 new homes over the next several years, which means new-construction options in this city are not going away.
Here is where this actually changes your decision:
If you were leaning resale because of the HST hit on new construction
That calculation just shifted. A $950,000 pre-construction townhome that would have cost you close to $76,000 in provincial HST now potentially costs you close to nothing extra on that front. That is real money that can go toward your down payment, upgrades, or simply staying under your comfort threshold.
If you are a move-up buyer weighing a new build as your next home
The math changes differently depending on whether you are buying before or after you sell. If you need bridge financing to make a new-construction purchase work while your current home is still on the market, the rebate timing matters just as much as the sale timing — you want your builder’s closing date to land inside the window, not slip past it.
If you are considering a new build purely as an investment
The rebate applies to qualifying long-term rentals, not flips or short-term holds, so you will want to confirm your intended use lines up with the eligibility rules before you count on this number.
None of this is a reason to rush into a purchase that does not fit your situation. But if new construction was on your list and you ruled it out over HST costs alone, it is worth a second look before this window closes.
The fine print you should not skip
A few things worth knowing before you get too far into planning around this:
- This is legislation in progress, not settled history. The provincial government has introduced the legislation and the Canada Revenue Agency’s own guidance, updated as recently as August 2026, treats it as current policy. But the federal matching portion is not finalized, and the exact combined number could still shift. Do not sign anything based on a number you have not confirmed with your lawyer or accountant.
- Construction and completion deadlines apply. Builder-built homes need to be substantially complete by the end of 2031, with HST payable by the end of 2032. Owner-built homes have their own construction-start and completion windows. These dates matter if you are considering a project with a longer build timeline.
- The rebate math is not always straightforward. Whether it is applied as a builder credit at closing or claimed afterward depends on how your specific agreement is structured. This is exactly the kind of detail I walk clients through line by line before they sign anything, because the difference between “up to $80,000” and what actually lands in your pocket comes down to the fine print.
Your specific number depends on your home’s price, your closing timeline, and how your agreement is structured. That is not something a rebate calculator can tell you with certainty. It is something worth running past someone who is watching this policy closely.
Working out your own baseline. Our HST rebate calculator models the long-standing rebate — the $24,000 provincial and $6,300 federal caps — so it shows you the floor, not the enhanced window described above. Until the federal match is finalized, use it for the baseline and let us run the enhanced figure against your actual agreement.
Frequently asked questions
Does the HST rebate apply to resale homes in Oakville?
What if the new home I want costs more than $1.85 million?
Is the rebate applied automatically, or do I have to do something?
Can I use this rebate if I am buying a new build as an investment property?
Is this rebate guaranteed to stay exactly as described?
General information only, not legal, financial or tax advice. Rebate amounts, eligibility and deadlines are subject to change and to final passage of the legislation. Confirm details with your lawyer or accountant for your specific situation.
About the author
Feras Riyal
Licensed since 2016, Feras has helped clients buy and sell more than $200 million in real estate across Oakville, Burlington, Milton, Mississauga, Hamilton and the Greater Toronto Area, completing over 100 transactions and averaging more than 35 a year.
He is best known for the move-up transaction — selling a current home while securing the next one without unnecessary stress, risk or costly mistakes. His designations include CNE, SRS, ABR and Luxury Listing Specialist, and his primary service areas are Oakville’s Glen Abbey, Joshua Creek, West Oak Trails, River Oaks and The Preserve, typically between $800,000 and $3 million.
More about Feras ↗Does this change your plans?
Whether it is a pre-construction townhome, a move-up purchase, or timing a build around your current home sale, I am happy to run the actual numbers with you — and map out what this rebate window means for your situation before it closes.
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