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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

Welcome to the 2026 Toronto real estate market. For years, breaking into the housing market felt like an impossible math problem. You saved the down payment, but the sky-high monthly carrying costs and the strict mortgage stress test kept you locked out.

But with the federal government's recent overhaul of mortgage regulations, first-time buyers have been handed a massive new advantage.

By expanding the 30-year mortgage amortization to include all first-time homebuyers purchasing resale properties—not just new builds—the math has officially shifted. This single policy change can drop your monthly mortgage payment by roughly 9%, instantly transforming how you shop for your first condo or townhome.

Here is a straightforward breakdown of the new rules, the hard numbers, and what it means for your homeownership journey in Toronto.

The New Rule: 30 Years for Everyone

Historically, if you had less than a 20% down payment (requiring a high-ratio insured mortgage), you were strictly capped at a 25-year amortization. This meant your loan had to be paid off in 25 years, resulting in steep monthly payments that disqualified many young buyers.

The recently expanded rules completely changed the landscape:

• The Expansion: All first-time homebuyers can now access a 30-year amortization, regardless of whether they are buying a brand-new pre-construction unit or a 20-year-old resale condo.

• The Down Payment: You still only need a minimum 5% down payment (on the first $500,000) to qualify.

• The Goal: Stretching the loan over an additional five years shrinks your required monthly payment, making it easier to pass the stress test and comfortably afford your carrying costs.

The Math: Breaking Down the 9% Drop

How much does five extra years actually save you month-to-month? Let’s look at a realistic scenario for a Toronto starter home.

Imagine you are buying a $600,000 entry-level condo or townhome. You have a 10% down payment ($60,000), meaning you need a $540,000 mortgage. Let's assume a fixed interest rate of 5%.

By extending your amortization to 30 years, your payment drops by roughly 8.5% to 9%. That is nearly $260 back in your pocket every single month.

Why This Makes Starter Condos and Townhomes Viable

A $260 monthly reduction might not sound like lottery money, but in the Toronto real estate market, it is often the difference between a mortgage approval and a rejection. Here is why this matters:

• Easier Stress Test Qualification: Lenders look at your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. Because your required monthly payment is lower, the income required to qualify for the mortgage drops. You can now qualify for a larger purchase price with the exact same salary.

• Breathing Room for Condo Fees: For first-time buyers eyeing the condo market, monthly maintenance fees are the ultimate budget killer. The 9% drop in your mortgage payment perfectly offsets a typical $250 to $350 monthly condo fee, making that starter unit viable again.

• Day-to-Day Cash Flow: That extra buffer helps cover Toronto's high cost of living, property taxes, or utility bills, keeping you from becoming "house poor" the moment you get the keys.

The Reality Check: The Cost of Time

While lower monthly payments are a massive win for getting your foot in the door, we need to be completely candid about the trade-off.

The longer you take to pay off a loan, the more interest you pay to the bank. Over the full 30-year lifespan of the mortgage, that extra five years means tens of thousands of dollars in additional interest.

However, you are not locked into 30 years forever. As your career advances and your income grows, you can take advantage of prepayment privileges. You can increase your monthly payments, drop annual lump sums onto your principal, or refinance to a shorter amortization down the road. The 30-year rule is a strategic stepping stone to get you into the market today; it does not have to be a life sentence.

Your Next Move

The expanded 30-year amortization rule has leveled the playing field for Toronto's first-time buyers. That resale townhome in Etobicoke or starter condo in Scarborough that was just out of reach last year might now fit perfectly into your budget.

If you have been sitting on the sidelines, it is time to rerun your numbers. Reach out to a mortgage professional, get pre-approved under the new 30-year guidelines, and start exploring the market with your new purchasing power.

Visit and contact remaxpluscity.com for more info!