Big news for homebuyers in Ontario. On March 25, 2026, the provincial government, in partnership with the federal government, announced a significant expansion of the HST rebate on new homes. If you’ve been on the fence about buying a new home in Kitchener, Cambridge, or Waterloo, this could be the most meaningful affordability development in years.
Here’s a clear breakdown of what was announced, who qualifies, and what it could mean for you.
What Was Announced?
The Ontario government is refunding the full 13 per cent of Harmonized Sales Tax (HST) for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000, as part of the upcoming 2026 Budget.
The federal government has agreed to cost-share with Ontario, which would approximately cover the federal five per cent portion of the HST being removed from new homes in Ontario, subject to passage of federal legislation. In practical terms, that’s a substantial reduction in the cost of buying a brand new home — and it applies broadly, not just to first-time buyers.
How Much Could You Save?
The rebate works on a sliding scale based on the purchase price of your new home:
- Homes up to $1 million: Full HST rebate, up to a maximum of $130,000
- Homes between $1 million and $1.5 million: Flat $130,000 rebate
- Homes between $1.5 million and $1.85 million: A declining rebate from $130,000 down to the existing $24,000 provincial reduction
- Homes above $1.85 million: The existing $24,000 rebate continues to apply
For most buyers purchasing a new home in Waterloo Region, the full or maximum rebate will apply.
Who Qualifies for the Rebate?
This is where the announcement gets particularly exciting. Under previous rules, only first-time buyers who planned to live in their new homes were eligible for a full rebate on the 13 per cent HST for homes priced up to $1 million. The proposed expanded rebate now includes repeat buyers who plan to live in their newly purchased units, as well as some investors who plan to rent out their units.
To be eligible, the purchase agreement with the builder must be signed between April 1, 2026, and March 31, 2027, and construction of the home must begin on or before December 31, 2028.
Why Does This Matter?
The expanded HST rebate could stimulate an additional 8,000 housing starts in Ontario next year, supporting up to 21,000 jobs and boosting Ontario’s GDP growth by $2.7 billion. For buyers, it means a more accessible path to homeownership at a time when affordability has been a growing concern across the province.
At Activa, we believe this kind of policy change can make a real difference for families and individuals across Waterloo Region who have been waiting for the right moment to make their move. With new homes across Kitchener, Cambridge, and Waterloo, many of our communities fall well within the price thresholds where the full rebate applies.
What Buyers Are Asking
Does the HST rebate apply to new homes in Kitchener, Cambridge, and Waterloo?
Yes. The rebate applies to qualifying new homes across Ontario, including those in Waterloo Region. Many Activa homes fall within the price range eligible for the full $130,000 rebate.
Is this rebate available to repeat homebuyers, not just first-timers?
Yes. The expanded rebate includes repeat buyers purchasing a new home as their primary residence, which is a significant change from previous rules that limited eligibility to first-time buyers only.
How long is this rebate available?
Ontario’s proposal covers a one-year window, specifically from April 1, 2026, to March 31, 2027. If you’re considering a new home purchase, acting within this window is important to take advantage of the full benefit.
Can investors qualify for the HST rebate?
Investors who purchase homes to use as rental properties may qualify for the tax rebate if the purchase agreement is signed between April 1, 2026, and March 31, 2027, and the home will be substantially completed before December 31, 2029. Note that limitations may apply for units where construction began before April 1, 2026.
Is this rebate confirmed?
The announcement has been made, and the framework is in place, but it remains subject to passage of federal legislation. We recommend speaking with your legal or financial advisor for guidance specific to your situation.
Thinking About Making Your Move?
This announcement is a meaningful step toward making new homeownership more accessible in Ontario, and we’re excited about what it could mean for buyers across our communities. If you have questions about how this rebate could apply to an Activa home purchase, our Sales Representatives are happy to help point you in the right direction.
Explore what’s available here.
