New Construction Buyers
Ontario New-Home HST Rebate (2026)
If your first home is a brand-new build, you may be sitting on one of the largest rebates available to buyers. Combined federal and Ontario measures could return up to about $130,000 on a qualifying new home — here is how the new-home HST rebate works.
Why new construction comes with a rebate
Unlike a resale home, the price of a brand-new build includes HST. To keep new homes attainable, the government offers the GST/HST New Housing Rebate, which returns part of that tax to buyers who will live in the home. For a first-time buyer stretching to afford a new build, that rebate can be the difference maker — and the 2026 enhancements aimed at first-time buyers push the potential savings higher still.
With the enhanced measures, an eligible first-time buyer of a qualifying new home priced up to roughly $1.5 million could see up to about $130,000 returned, scaling with the purchase price. Because the rules and effective dates are still being finalized, treat that figure as a ceiling to confirm — not a guarantee — for your specific purchase.
How buyers actually receive it
In many new-construction deals, the builder applies the rebate directly as a credit, lowering the price you finance and handling the paperwork at closing. In other cases you claim it from the CRA after you take possession. Either way, the key is making sure the rebate is accounted for in your agreement of purchase and sale — something we and your lawyer watch for on your behalf.
Find qualifying new builds in Niagara
Niagara has a steady supply of new construction and pre-construction opportunities. Start by exploring newly built Niagara homes, and remember the HST rebate stacks with the rest of the first-time buyer toolkit — tax-free savings through the FHSA and Home Buyers’ Plan, a low-down-payment mortgage, and the land transfer tax refund. See the full picture in our down payment programs overview.
Frequently asked questions
What is the new-home HST rebate?
When you buy a newly built or substantially renovated home, HST applies to the price. The GST/HST New Housing Rebate returns a portion of that tax to eligible buyers who will use the home as their primary residence. It applies to new construction and pre-construction purchases, not typical resale homes.
How much can a first-time buyer get back?
It depends on the price and the rebate rules in effect, but with the enhanced first-time buyer measures, eligible buyers of a qualifying new build could see up to roughly $130,000 returned on a home priced up to about $1.5 million. The exact amount scales with the purchase price.
What is changing in 2026?
Ontario and the federal government have moved to expand new-home HST relief specifically for first-time buyers, with enhanced rebate measures phasing in over the 2026–2027 period. Because the details and effective dates are still being finalized and may change, confirm the current rules with the CRA and your builder or lawyer before relying on a specific figure.
Which homes qualify?
Generally, newly built homes, substantially renovated homes, and pre-construction purchases from a builder qualify, as long as the home becomes your (or a relation's) primary place of residence. Resale homes that already had HST paid by a previous owner usually do not qualify.
How do I claim it?
In many new-construction purchases the builder credits the rebate directly into the price so you pay less up front, and the paperwork is handled at closing. In other cases you apply to the CRA after closing. Your real estate lawyer and builder will confirm which applies to your purchase.
This page is general information from Davids & DeLaat, REMAX Niagara Realty Ltd., and is not tax or legal advice. The GST/HST New Housing Rebate is administered by the Canada Revenue Agency, and the 2026–2027 first-time buyer enhancements are subject to final legislation and may change. Confirm current eligibility, amounts and effective dates with the CRA, your builder and your lawyer before relying on them.
Talk to a local agent
Buying new? Don't leave the HST rebate on the table
We will help you understand what the new-home HST rebate could be worth on the build you are considering — and find qualifying new construction in Niagara.
Prefer to talk it through? Call the team or send a message.
Explore other buyer resources
Keep planning your first purchase with these related guides and live Niagara searches.
- Full Down Payment Programs Overview — compare every program
- DPAP Hamilton — for buyers considering Hamilton instead
- Get pre-approved for a mortgage — the required first step
- Niagara homes under $500K — matches the 5% down threshold
- Newly built Niagara homes — candidates for the HST rebate
- Set up an automated buying agent — instant new-listing alerts
- Buying with Davids & DeLaat — how our team makes it easy