Ontario HST Removed on New Homes: How First-Time Buyers Save Up to $130K

This is the largest one-year tax break for home buyers in Canadian history. On March 25, 2026, Doug Ford announced that Ontario is removing the full 13% HST on new home purchases for one year. Combined with the federal GST elimination for first-time buyers that took effect March 12, 2026, the total tax savings for a first-time buyer on a $1M new home is up to $130,000.

Almost nobody is talking about this in the right way. Most articles focus on one piece — the federal GST or the Ontario HST — and miss the combined math. Here's the full picture.

The federal piece — Bill C-4 (March 2026)

Bill C-4 received Royal Assent on March 12, 2026. The federal government eliminated the 5% GST on new homes up to $1 million for first-time buyers. Maximum benefit: $50,000 in saved GST. Phased out between $1M and $1.5M. No benefit above $1.5M. Permanent — does not expire.

This applies to first-time buyers, defined as people who haven't owned a home in the past four years. It's a permanent program, so the urgency isn't time-based — it's about combining it with the Ontario piece.

The Ontario piece — HST elimination window

This is the time-limited one. From April 1, 2026 through March 31, 2027, Ontario eliminates the full 13% HST on new homes up to $1 million for all buyers — not just first-time. Closing must occur in this window.

Resale homes are not included. They were already HST-exempt anyway. The HST elimination only applies to new construction sold by the builder.

Real dollar savings

• $600K new home, first-time buyer: $30K federal GST eliminated + $48K Ontario HST eliminated = $78,000 saved
• $800K new home, first-time buyer: $40K + $64K = $104,000 saved
• $1M new home, first-time buyer: $50K + $80K = $130,000 saved
• $900K new home, NOT a first-time buyer: $0 federal + $72K Ontario HST eliminated = $72,000 saved

How to stack with other programs

The HST elimination stacks with every other Toronto first-time buyer program:

• FHSA — up to $40,000 per person, tax-deductible contributions, tax-free withdrawal. $80,000 combined for a couple.
• HBP — up to $60,000 RRSP withdrawal, tax-free. $120,000 combined.
• 30-year amortization — available for first-time buyers on insured mortgages.
• $1.5M insured mortgage cap — minimum down payment of 5% on first $500K, 10% on portion above.
• Ontario + Toronto Land Transfer Tax rebates — up to $8,475 combined for first-time buyers.
• First-Time Home Buyer Tax Credit — $1,500 on your tax return.

For a couple buying a $1M new build in 2026, the combined stack can save $200K+ in taxes, fees, and tax-advantaged down payment dollars. That's not a typo.

The pre-construction trap to watch

The HST window closes March 31, 2027. If you're considering pre-construction, confirm in writing that occupancy and closing will land before that date. Many pre-con projects scheduled for 2027+ occupancy won't qualify — and the builder might not tell you proactively.

Toronto pre-construction sales are down 79% year-over-year. Approximately 10% of pre-sold condos that registered in 2025 were taken back by developers because buyers couldn't close. The HST elimination doesn't fix this underlying problem.

For most first-time buyers in 2026, the smartest path is buying a brand-new home that's already built (or near completion) where occupancy lands in the HST window. We'll find one together if you'd like help.

What to do this month

If you're a first-time buyer thinking about 2026 or early 2027:

• Open an FHSA today if you don't have one (any major bank, takes 15 minutes).
• Talk to a mortgage broker about insured pre-approval at the $1.5M cap.
• Make a shortlist of 2 or 3 new construction projects with occupancy before March 31, 2027.
• Run the full numbers — purchase + LTT + closing + tax savings — with a realtor who actually understands the stack.