Best Time to Buy

Now is the best time to buy a new home

The harmonized sales tax (HST) on new homes valued under $1 million is being eliminated, making it an extraordinary time for Ontarians to buy a home.

As of April 1, 2026, the federal and provincial governments are removing the HST on homes valued at under $1 million and reducing the HST on homes valued from $1 million to $1.85 million until March 31, 2027. This will immediately reduce housing prices by up to $130,000, making it easier to qualify for mortgages, and making your homebuying dollar go further.

Home buyers should take advantage of these cost savings now and seize this once-in-a-lifetime opportunity to make their dreams of homeownership a reality.

Federal and provincial governments have cut the HST on new homes in Ontario

The federal and provincial governments announced on March 25, 2026 that the sales tax on new homes valued at under $1 million will be removed until March 31, 2027, in Ontario.

This change will eliminate the full 13% HST on a new home valued at under $1 million. This program will also provide a flat $130,000 sales tax reduction for homes valued between $1 million and $1.5 million, and a declining tax reduction from $130,000 to the existing $24,000 provincial tax break for homes valued between $1.5 million and $1.85 million.

This sales tax elimination and reduction puts more money in the pockets of homebuyers and gives them the confidence to enter the market knowing they have greater choice and flexibility when purchasing a new home.

Homebuyers have until March 31, 2027, to take advantage of this cost-saving mechanism.

Prices are down, inventory is up

Housing prices in Ontario have decreased since their 2022 peaks, making current market conditions more favourable than ever for new homebuyers.

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Choice has never been better

Now is the right time for new homebuyers to enter the market. With prices down and inventory up, market conditions have never been more favourable.

Inventory levels are at some of the highest levels we’ve seen across the province. For example, there are currently over 20,000 new homes on the market in the Greater Toronto Area. To compare, in 2022 there were only 8,000 units of inventory on the market.

With a high level of inventory and choice available, there is sure to be a home to meet the needs of purchasers and a lot less competition when searching.

Now is a once in a lifetime opportunity to get precisely the new home you want at an attainable price not seen in decades.

Legend of Terms

Elimination, reduction, and rebate are all terms used on this page to describe the Ontario government’s recent HST announcement on new homes. To fully understand this change, it is important to understand these terms.

Elimination refers to new homes valued up to $1 million where the full 13% HST is being completely removed for homebuyers.

Reduction refers to new homes valued between $1 million and $1.85 million, where the HST is being reduced to a lower rate. This means homebuyers will still have to pay some HST on their new home, but it will be at a lesser amount than what was previously in place before April 1, 2026.

A rebate refers to a homeowner who substantially renovates their home to be as new (as defined by the appropriate legislation), and then applies directly to the government for a reimbursement of that payment.

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LATEST NEWS

March 2026

March 25, 2026: Ontario Newsroom - Ontario Expanding HST Rebate to Lower the Cost of New Homes in Partnership with the Federal Government | Read now

March 25, 2026: OHBA and BILD applaud the game-changing reduction and elimination of the harmonized sales tax (HST) on new homes in Ontario| Read now