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With recent updates to federal and provincial housing rebates, there is a lot of excitement—and a fair amount of confusion—regarding who actually qualifies. The government’s primary goal is to stimulate new construction and move existing inventory, meaning these incentives are strictly forward-looking.

To help you determine if you are eligible for these savings, we’ve broken down the most common questions we receive regarding Agreement of Purchase and Sale (APS) dates, investor eligibility, and anti-avoidance rules.

1. Does the rebate apply to homes purchased several years ago that haven't closed yet?

The Short Answer: No.

If you signed an APS with a builder in 2022, 2023, or any time prior to the new cut-off dates (March 20, 2025, or April 1, 2026, depending on the specific program), these new rebates do not apply to you.

The intention of both the federal and provincial governments is to encourage new sales and construction. Because your agreement was signed before these dates, your purchase is considered part of the "old" inventory and does not qualify for the enhanced rebate amounts.

2. Can I qualify for the rebate if I am an investor?

The Short Answer: Yes!

There is good news for those looking to expand their real estate portfolio. If you sign an agreement between April 1, 2026, and March 31, 2027, the expanded provincial rebate applies to properties purchased for investment purposes. This is a significant shift designed to keep the rental housing market moving.

3. Can I cancel my "old" APS and sign a new one for the same property to get the rebate?

The Short Answer: Absolutely not.

You may be tempted to "reset" your contract to take advantage of better terms, but the government has already accounted for this. Under federal anti-avoidance measures (which the province is expected to mirror), if an original agreement entered into before the eligibility date is canceled and replaced with a new agreement for the same property, the rebate will be firmly disallowed.

These rules are strictly enforced to prevent "gaming" the system and ensure the funds go toward genuinely new transactions.

4. Can I buy a property through an assignment sale to qualify?

The Short Answer: No.

If you purchase a property via assignment (taking over a contract from an original purchaser) after April 1, 2026, it does not reset the clock for rebate eligibility.

The Canada Revenue Agency (CRA) bases eligibility on the date the original agreement was signed between the builder and the initial purchaser (the Assignor). If that original contract pre-dates the March 20, 2025, or April 1, 2026, cut-offs, the property remains ineligible for the enhanced rebates, regardless of when you took over the contract.

Summary of Eligibility Dates

Key Takeaway

The new rebate landscape is designed to reward new buyers and investors who enter the market during the specified eligibility windows. If you are planning a purchase, timing is everything.

Planning to buy or invest? Make sure you speak with a qualified tax professional or real estate expert to ensure your Agreement of Purchase and Sale aligns with the current rebate requirements.

Ready to Maximize Your Housing Savings?

Navigating the New HST Rebate rules can be complex, and a single mistake in your APS timing could cost you thousands. Don't leave your tax savings to chance.

Contact Our Real Estate Experts Today for a personalized consultation on your next purchase. We’ll help you review your APS and ensure you’re positioned to take full advantage of the latest government incentives.

Disclaimer: This guide is for informational purposes only and does not constitute financial, legal, or tax advice. Government programs are subject to change. Consult a real estate lawyer or tax professional regarding your specific situation before signing any real estate contracts.

Let’s face it: breaking into the Toronto real estate market as a First-Time Home Buyer (FTHB) is tough. But if you’re looking at pre-construction or newly built homes, the landscape just shifted massively in your favor.

New federal and provincial tax rebates have been introduced that significantly improve the affordability of new builds compared to resale homes. By reducing the effective purchase price, these rebates can even improve your mortgage qualification outcomes under the stress test.

Here is everything you need to know about the new 2026 HST rebates—and what they mean for your wallet.

1. The Federal FTHB GST Rebate: Up to $50,000 in Savings

The Federal Government has officially approved Bill C-4 to exempt the 5% GST on new homes for First-Time Home Buyers.

• Homes under $1 Million: The 5% GST is completely eliminated. This is a savings of up to $50,000 on the purchase price!

• Homes between $1M and $1.5M: You receive a prorated portion of the 5% GST on a sliding scale.

• Homes over $1.5M: No federal rebate applies.

2. The Provincial FTHB PST Rebate: Up to $80,000 in Savings

Ontario announced its intention to mirror the Federal rebate, which was passed into law on March 12th, 2026. While the final provincial details are still being ironed out, the proposed relief is massive.

• Homes under $1 Million: Relief of the full 8% PST for FTHBs (up to $80,000).

• Homes between $1M and $1.5M: A prorated portion of the 8% PST.

(Note: Ontario is also proposing a temporary expansion of a full 13% HST relief up to $130,000 for agreements signed between April 1, 2026, and March 31, 2027, which even includes repeat buyers and investors!)

Let's Look at the Math: "Show Me The Money"

Tax percentages can be hard to visualize, so let's look at two real-world examples of how these combined rebates work:

Scenario A: Buying a $700,000 Home If you purchase a $700,000 home as a FTHB today, here is what your tax relief looks like:

• Legacy HST Rebate: $24,000 (already included in the sticker price)

• New Federal FTHB Rebate: $32,035.40 back

• New Provincial FTHB Rebate: $27,256.64 back

• Total Tax Relief: $83,292.04

Scenario B: Buying a $1,200,000 Home Because this home is over $1 million, the rebates are prorated on a sliding scale.

• Legacy HST Rebate: $24,000 (already included in the sticker price)

• New Federal FTHB Rebate: $41,681.42 back

• New Provincial FTHB Rebate: $42,690.27 back (Presumed calculation)

• Total Tax Relief: $108,371.69

Do You Qualify?

To take advantage of these massive savings, you must meet strict criteria:

• You must be 18+ and a Canadian citizen or permanent resident.

• You must be a true FTHB (neither you nor your spouse/partner have owned a home you lived in during the last 5 years).

• The home must be your primary residence, and you must be the first occupant.

• The Agreement of Purchase and Sale (APS) must be signed on or after March 20, 2025, and before the end of 2030.

🚨 Warning: Don't Try to "Game" the System 🚨

The CRA has strict anti-avoidance measures in place.

• No Do-Overs: You cannot cancel an old agreement and sign a new one to qualify. Your rebate will be firmly disallowed.

• Assignment Sales Don't Reset the Clock: Buying an assignment sale after April 1, 2026, does not qualify you if the original purchaser signed the contract with the builder before the eligibility dates.

How to Apply

If you sign an agreement between March 20, 2025, and March 31, 2026, you will likely need to pay the taxes upfront on closing and apply for the refund yourself through the CRA using Form GST190 and Form RC7190 ON. If you sign after April 1, 2026, you may be able to negotiate a clause where the builder handles the rebate on your behalf, reducing your balance directly on closing!

Ready to start your new home search? Navigating pre-construction contracts and tax rebates requires expert guidance. Contact the RE/MAX Plus City Team today to find out how much you can save on your first home. Visit us at www.remaxpluscity.com.

The Greater Toronto Area (GTA) housing market in March 2026 reflects a landscape shaped by both uncertainty and emerging opportunity. Whether you're looking to buy, sell, or simply keep a pulse on the local economy, understanding the nuances of today's market is crucial. Based on the latest insights from the RE/MAX PLUS CITY TEAM, here is a breakdown of what you need to know.

The Buyer’s Dilemma vs. Pent-Up Demand

Right now, ongoing global and economic events continue to weigh heavily on buyer sentiment. Concerns around supply chains, the rising cost of living, and broader economic uncertainty have prospective buyers questioning what to believe. For some, committing to a five-year mortgage FREE MORTGAGE CALCULATOR remains a significant challenge—particularly when employment outlooks feel less certain and negative headlines persist. As a result, many buyers remain on the sidelines, wondering whether home values and sales activity will continue to decline or whether today's conditions represent a window of opportunity.

However, the tide might be starting to turn. Signs of pent-up demand are becoming increasingly evident. More buyers, especially in the low-rise segment, are actively researching the market, educating themselves, and positioning to take advantage of improved affordability. This is translating into increased inquiries and a gradual rise in offer activity—particularly in neighbourhoods with historically strong demand and limited supply.

Tightening Inventory in the Low-Rise Segment

If you are looking at detached, semi-detached, or townhomes, you might be surprised by the current inventory levels. Here is what the data shows for the low-rise segment:

• Sales were down 4% year-over-year.

• New listings declined by 16%, marking the second consecutive month of declining inventory.

• While many anticipated more homeowners would enter the market amid affordability discussions, this trend was not widely expected.

• Instead, many sellers appear to be waiting for stronger conditions before listing their homes.

• This dynamic—higher sales alongside fewer new listings—resulted in tighter resale market conditions compared to last year.

The Condo Market Shift: From Unsold to Rentals

Much has been reported about elevated inventory levels in the condominium market and developers slowing or pausing new construction until existing supply is absorbed. However, an important and often underreported trend is emerging: a significant number of unsold condominium units are being absorbed in bulk and converted into rental housing.

One major example is the GTA Rental and Affordable Housing Initiative, a fund expected to be capitalized with a minimum of $1.3 billion. This initiative aims to acquire newly completed unsold units across the GTA and convert them into long-term rentals.

• Approximately 2,200 units are expected to be converted.

• This includes around 550 affordable units protected through title-based agreements.

• These affordable units will be priced at the lower of 25% below market rent or 30% of median household income.

While this initiative supports rental supply and affordability in the short term, it may reduce future ownership supply. Ultimately, this pipeline tightening could place upward pressure on prices over time as fewer new projects are launched and more existing units transition to rental use.

Government Policy and the Wait for Relief

There have also been positive policy developments recently. Announcements from federal and provincial governments regarding HST and development charge relief represent meaningful affordability initiatives designed to stimulate new home construction and sales activity. MORE INFO ABOUT HST + FREE ELIGIBILITY CALCULATOR

However, there has not yet been clear evidence that these savings are being passed on to buyers, and the industry has not seen these incentives reflected in end pricing to date. The hope remains that builders will ultimately pass these savings on, further supporting housing affordability and market momentum.

Takeaways for Buyers and Sellers

The overall market may appear measured, but micro-markets with tight supply and consistent demand are already demonstrating stronger activity.

• For Sellers: Success in today’s environment is increasingly tied to accurate pricing, strong presentation, and an understanding of neighbourhood-specific dynamics, rather than relying on broader GTA averages.

• For Buyers: The result is a market where uncertainty still exists—but so does opportunity. As we move further into the spring market, there is growing confidence among buyers that prices are stabilizing and may not decline significantly from current levels. Many buyers are no longer standing still; they are preparing, learning, and selectively acting.

If you're looking to navigate these tight micro-markets or have questions about the shifting condo landscape, reach out remaxpluscity.com