We do not make a habit of interrupting your week twice. But Ontario dropped a major announcement today and your clients are already asking questions. We wanted to make sure you had the real picture before your next showing.

Not the news blast. The full breakdown.

Here is everything you need to walk into any client conversation.

Today's Announcement. Start Here.

Ontario proposed removing the full 13% HST on new homes for all buyers. Not just first-timers. Everyone!

The maximum rebate is $130,000. Here is what that looks like at various price points.

The $130,000 maximum holds flat from $1,000,000 to $1,500,000. Above $1,500,000 it phases down proportionally. The $24,000 floor at $1,850,000 is not arbitrary; it is the amount already available under the baseline program that has existed for years.

Who qualifies:

• All buyers, not just first-timers

• Purchase must be for use as a primary residence or a residential rental property

• Commercial units do not qualify

Eligible purchases must close between April 1, 2026 and March 31, 2027. One year only.

The Two Programs That Already Existed

Today's announcement sits alongside two (2) programs your clients may already be asking about. Here is where they fit.

Program 1. The Baseline New Housing Rebate

• Has existed for years

• Applies to all buyers

• Has never covered the full HST

• Provincial portion phases out above $450,000

• Federal portion phases out above $350,000

• Combined maximum: $24,000

That $24,000 is the floor everything else is built on top of.

Program 2. The First-Time Home Buyer Rebate (March 2025)

• First-time buyers only

• Removes the full 5.00% federal portion on homes up to $1,000,000, saving up to $50,000 (passed and applications currently being accepted by the CRA)

• Ontario proposed matching with the full 8.00% provincial portion, saving up to $80,000 (not passed yet)

• Combined: zero HST on a qualifying new home under $1,000,000

• For homes between $1,000,000 and $1,500,000, the rebate phases down to a floor of $24,000 at $1,350,000 and holds there through $1,500,000

• APS must be signed on or after March 20, 2025 and on or before December 31, 2030

• Home must be substantially completed before 2036

• Federal applications are open at the CRA, though processing is delayed for agreements signed between March 20 and May 26, 2025

These Programs Do Not Stack

This is the question every client will ask and the answer almost nobody is giving today.

A first-time buyer signing after April 1, 2026 on a home under $1,000,000 does not collect Program 2 and today's rebate on top of each other. Today's program is more generous. It removes the full 13.00% rather than just the 8.00% provincial portion. The better program will likely apply.

Before Your Client Signs, Read This

Today's announcement is a proposal. Not law.

The 2026 Ontario Budget releases tomorrow, March 26. The implementing legislation has not passed. The federal cost-sharing is also conditional on federal legislation clearing Parliament.

A client who prices this rebate into their financing before the legislation passes is taking on a risk they may not fully understand. Make sure they know the difference between a government announcement and a government guarantee.

The Ontario news release can be accessed at: https://news.ontario.ca/en/release/1007212/ontario-expanding-hst-rebate-to-lower-the-cost-of-new-homes-in-partnership-with-the-federal-government

Questions or advice needed on your next closing? Reach out at [email protected] or call 519-997-3775.

Solid contracts ensure seamless closings.

Until next time.

-Christian