HST rebate sparks renewed interest in Toronto new builds
“If sales are higher and the prices are going down, that just shows that there is renewed interest and people are willing to purchase at more attractive offers and prices,” he said. “We’re maybe at the beginning of that tilt to the upside now.”
Why the confidence of some first-time buyers is improving
Against a backdrop that includes the sustained slide in Toronto condo prices and a broader slowdown in new-home construction across the region, Ontario’s government in partnership with the federal government removed the 13% harmonized sales tax (HST) for eligible buyers of new homes valued up to $1 million, applying to purchase agreements signed between April 2026 and March 2027.
That maximum rebate of $130,000 is also maintained for new homes with a value of up to $1.5 million, decreasing proportionally after that point.
The Fraser Institute has estimated the broadened eligibility could prove significant given local prices, noting that 34.1% of new homes sold in Toronto last year were priced above $1 million and would not have qualified for the maximum benefit under the previous, first-time-buyer-only rules.
Unlike earlier versions of the relief, the expanded rebate isn’t restricted to first-time buyers – and Khaneka credited the adjustment with helping boost homebuyer confidence towards the market.
