TLDR: There are two separate HST rebate programs — one active federally, and one announced by Ontario that is not yet fully legislated. Most articles blend them together without distinguishing which is which, creating serious confusion. Program 1 (federal) is strictly for first-time buyers only. Program 2 (Ontario, proposed) would open eligibility to ALL buyers on homes up to $1.85M — but only during a one-year window, and only if the legislation is finalized as announced. For most custom home clients in the GTA, this announcement changes very little. Here's the clear, fact-checked breakdown.
Why Everyone Is Confused About This (Including the Headlines)
Articles about the HST rebate keep saying contradictory things (and we are sure this is annoying for people).
One article says it's only for first-time home buyers. Another says substantial renovations qualify. A third says any buyer can save up to $130,000. All three are technically correct — but they're describing different programs at different stages of implementation.
There are two separate rebate programs — one active federally, and one announced (but not yet fully legislated) by Ontario. They have different eligibility rules, different timelines, and different savings amounts. When writers blend them together without clarifying which program they're describing — or whether it's even finalized — readers reasonably conclude one thing when the truth is more complicated.
Our team has been getting questions about this since the news broke. Here is the clearest breakdown we can give you.
Program 1: The Federal First-Time Buyer GST Rebate
Who it's for: First-time home buyers only
Federal savings: Up to $50,000
Timeline: Purchase agreements signed between March 20, 2025 and December 31, 2030
Status: Active and confirmed
This is the program the federal government announced in early 2025. It eliminates the 5% federal portion of the HST (the GST) on newly built homes for eligible first-time buyers.
To qualify, you must:
✅ Be a first-time home buyer (see definition below)
✅ Be a Canadian citizen or permanent resident, age 18+
✅ Intend to occupy the home as your primary residence
✅ Be the first person to occupy the home after construction.
✅ Have a purchase agreement signed after March 20, 2025 and before January 1, 2031
How the savings work:
Homes priced at $1M or under → full federal GST eliminated (up to $50,000 saved)
Homes between $1M and $1.5M → partial rebate, declining as price increases
Homes above $1.5M → $0 from this program
Corporations, investors, and spec builders are automatically ineligible. This program is for individual buyers purchasing a primary residence only.
What "First-Time Buyer" Actually Means
This is where a lot of people get it wrong. "First-time buyer" under this program does not necessarily mean you have never owned a home in your life.
The definition follows the same standard used by the federal Home Buyers' Plan and First Home Savings Account: you must not have owned and occupied a home as your primary residence during the current calendar year or the four preceding calendar years.
In plain terms: if you sold your last home more than four years ago, you may qualify as a first-time buyer again. This is worth confirming with a tax professional if you're in that window.
That said, for most of our clients — families upgrading directly from an existing home, or those who have owned property continuously — this program won't apply.
Program 2: Ontario's Proposed Expanded HST Rebate (Open to ALL Buyers)
Who it's for: ALL buyers — first-time or not
Combined savings: Up to ~$130,000 if Ontario's proposed rebate is fully implemented as announced
Timeline: Purchase agreements signed between April 1, 2026 and March 31, 2027 — subject to final legislation
Status: Announced — not yet fully legislated
This is the program most people were asking about after Premier Ford's announcement on March 25, 2026. Ontario announced an expansion of its HST rebate to cover all new home buyers — not just first-time buyers — for a one-year window.
Important framing: this program has been announced at the policy level. Final legislation, full CRA-administered details, and exact rules around certain situations (corporate eligibility, rental treatment, precise phase-out mechanics) have not been fully codified at the time of writing. Treat the savings figures as directional until the legislation is finalized.
This is also a temporary, time-limited measure. Outside this proposed window, the broader eligibility disappears.
How the savings would work (based on announcement)
To qualify:
✅ Purchase agreement signed between April 1, 2026 and March 31, 2027 (subject to final legislation)
✅ Home must be newly built or substantially renovated
✅ Must be used as a primary residence
✅ For primary residences: construction must begin by December 31, 2028 and be substantially completed by December 31, 2031
Note on rental properties: Ontario has indicated the program may include purpose-built rental housing, but final eligibility rules for rentals should be confirmed with a lawyer or accountant before budgeting around this.
Note on corporate eligibility: Most rebate programs are structured for individual purchasers. Corporate eligibility under Ontario's proposed expansion is unclear and should be confirmed before assuming qualification.
Do Substantial Renovations Qualify?
Yes — this is one of the most misunderstood parts of the program, and one of the reasons articles seem to contradict each other.
Both programs apply to substantially renovated properties, not just brand-new builds. CRA defines substantial renovation as replacing 90% or more of the interior of an existing structure.
So if you are doing a full gut renovation — down to the foundation and exterior shell — you are treated the same as a new build for purposes of these rebates.
What this means practically:
Under the Ontario proposed one-year window (all buyers): A substantially renovated home priced under $1.85M may qualify — if legislation is finalized as announced
Under the federal FTHB program: A substantially renovated home qualifies if the buyer is a first-time buyer and meets all other criteria
A standard renovation, addition, or partial retrofit: Does not qualify under either program
What the Existing (Old) Rebates Still Cover
Even outside both new programs, there is an existing GST/HST New Housing Rebate that has been around for years, and another HST rebate that we have successfully helped our home addition, renovation, and custom home building clients for years.
This rebate is broadly available — not restricted to first-time buyers — and applies to new builds and substantial renovations. The catch: the federal portion phases out almost entirely at home values above approximately $450,000. In the Toronto and GTA custom home market, that means essentially $0 in federal savings under the old program.
What remains is the Ontario portion — approximately $24,000 — which is available to a broad group of buyers regardless of first-time status. If you don't qualify for either of the new programs, this is what you fall back on.
Even if you don't qualify for the new rebates, you may still be entitled to the existing ~$24,000 Ontario rebate or the $16,080 rebate. Confirm with your accountant before assuming you're getting nothing.
What This Means for BVM Clients
Here is the honest breakdown by situation:
Custom home signed April 2026 – March 2027, priced under $1.85M (if Ontario legislation passes as announced)
→ The Ontario one-year window would apply — real savings even if you've owned before
→ $1M or under: up to ~$130,000 in combined savings
→ $1M–$1.85M: rebate begins to phase out — total savings decrease as price increases
→ Confirm actual figures with your accountant as final legislation is released
Custom home priced above $1.85M
→ $0 from either new program, regardless of timing
→ Only the existing ~$24,000 Ontario rebate or $16,080 rebate remains
→ A $2M+ custom home sees no meaningful change from any of these announcements
First-time buyer (hasn't owned in 4+ years or owned at all)
→ Eligible for the active federal FTHB rebate (up to $50,000) on homes under $1.5M
→ During the proposed Ontario one-year window, a first-time buyer could stack both programs for up to ~$130,000 in combined savings — if the Ontario legislation passes as announced
→ Outside that window, still eligible for the federal $50,000 rebate until December 31, 2030
Not a first-time buyer, home over $1.85M
→ No new rebate applies regardless
→ ~$24,000 Ontario existing rebate is the ceiling plus $16,080 from GST191 Rebate
→ This is the reality for the majority of our custom home clients
Why Media Coverage Feels Misleading
The Toronto Sun, BILD, and similar sources are reporting information that is directionally correct — but they're describing the Ontario one-year announcement, which is expected to be open to all buyers. The headline "there has never been a better time to buy" is defensible for buyers of homes under $1.85M who sign in 2026 — if the legislation passes as announced.
What those articles don't make clear:
The broader eligibility is proposed and not yet fully legislated
The broader eligibility is also temporary — one year only
Above $1.85M, savings drop to ~$24,000 regardless of the program
The federal FTHB rebate (which is what most earlier coverage described) is still first-time buyers only and is a separate, fully-active program
The two programs are separate, with different rules, timelines, and implementation statuses
For a buyer in the $800K–$1.5M range with a signed agreement in 2026, this is potentially significant — pending legislation. For a buyer building a $2M custom home who has owned property before, the math doesn't change.
What to Do Before Budgeting Around These Programs
→ Confirm which program applies to your situation — they have different eligibility rules, timelines, and implementation statuses
→ If you haven't owned a home as your primary residence in more than four years, confirm your first-time buyer status with a real estate lawyer
→ If your purchase agreement will be signed between April 1, 2026 and March 31, 2027 and your home is under $1.85M, monitor Ontario's final legislation closely — the proposed window may apply regardless of first-time buyer status
→ Do not adjust your budget to rely on the Ontario proposed expansion until the legislation is confirmed
→ Confirm rebate treatment with your builder at the time of signing — eligible savings should appear as a credit on your statement of adjustments at closing
→ Have your accountant verify eligibility before adjusting your budget to rely on any rebate amount
→ If your home will exceed $1.85M, plan around the ~$24,000 existing Ontario rebate as your baseline — not $130,000
Frequently Asked Questions
Does the rebate apply to renovations or additions?
Substantial renovations (90%+ of interior replaced) qualify under both the active federal program and Ontario's proposed expansion — they are treated the same as new builds. Standard additions, partial renovations, and retrofits do not qualify.
Is the Ontario expanded rebate really for all buyers, not just first-time?
That is what Ontario announced — but the legislation is not yet fully codified. Based on the announcement, the one-year window (April 1, 2026 to March 31, 2027) would be open to all buyers. Confirm with a professional once final regulations are published.
Can a first-time buyer stack both programs?
Under the proposed Ontario one-year window, eligible first-time buyers could receive the full 13% combined rebate (Ontario 8% + federal 5%) on homes under $1M, for up to ~$130,000 in total savings — if the Ontario program is finalized as announced.
What happens if Ontario's one-year rebate expires and isn't renewed?
Non-first-time buyers lose access to the expanded program entirely. Only the federal FTHB rebate (first-time only) and the existing ~$24,000 Ontario rebate remain.
Does the rebate apply through a corporation?
The federal FTHB rebate does not — it requires individual buyers. Corporate eligibility under Ontario's proposed expansion is unclear and has not been fully codified. Most rebate programs are structured for individual purchasers — confirm with your lawyer before assuming qualification.
What if my home is $1.5M and I'm not a first-time buyer?
Under the proposed Ontario one-year window (April 2026 – March 2027), you may qualify for meaningful savings — but the rebate phases out between $1M and $1.85M, so the exact figure depends on your purchase price. Confirm with your accountant once final legislation is published. Outside that window, you'd be limited to the ~$24,000 existing Ontario rebate only.
What is the existing Ontario rebate most buyers fall back on?
The existing GST/HST New Housing Rebate provides approximately $24,000 through the provincial portion for eligible new home buyers, regardless of first-time buyer status. The federal portion of this older program is negligible for GTA-priced homes.
Key Takeaways
→ There are two separate programs — the federal First-Time Buyer GST Rebate (active, first-time only) and Ontario's Proposed Expanded HST Rebate (announced, not yet fully legislated, all buyers, one-year window)
→ Ontario's proposed one-year window (April 1, 2026 – March 31, 2027) is expected to be open to ALL buyers on homes up to $1.85M — but final legislation has not been published; treat savings figures as directional until confirmed
→ The federal program is active and confirmed — up to $50,000 for first-time buyers on homes under $1.5M, valid until December 31, 2030
→ Homes above $1.85M receive approximately $24,000 from the existing Ontario rebate regardless of which program applies
→ "First-time buyer" means you haven't owned a primary residence in the current or 4 preceding calendar years — not necessarily "never owned before"
→ Substantial renovations (90%+ of interior replaced) qualify under both programs — not just new builds
→ For BVM's typical client building above $1.85M who has owned before: the honest answer is still ~$24,000 maximum from the existing rebate — these announcements change nothing for that group
→ If your project is under $1.85M and you're signing in 2026, monitor Ontario's legislation closely and confirm eligibility with your lawyer and accountant before adjusting your budget
→ Never adjust your budget to rely on a rebate — especially a proposed one — without first confirming eligibility in writing with a qualified professional
Ready to Talk About Your Project?
If you're planning a custom home in Toronto or the GTA and want to understand exactly how this rebate applies to your build, this is the conversation to have now — not in six months. Our team is already working through these numbers with clients in our pre-construction pipeline, and we have the design and construction experience to help you build smart within the most advantageous cost tier.
Book a call with our team directly at bvmcontracting.com — and let's figure out what this opportunity actually means for your project.