Ontario's New HST Rebate: What London Homebuyers Need to Know About Saving Up to $130,000

A Game-Changer for New Construction in London, Ontario

If you've been eyeing a new build in London—whether it's a modern townhome in Hyde Park, a detached home in a growing Stoney Creek development, or a sleek condo near Western University—there's significant news that could reshape your buying power.

Ontario has announced a full HST rebate on new homes priced up to $1 million, potentially saving buyers up to $130,000. For London's real estate market, where new construction typically ranges from $500,000 to $1.2 million depending on the neighbourhood and property type, this policy could make homeownership substantially more accessible.

Breaking Down the New HST Rebate Structure

Here's how the rebate works based on the purchase price of your new home:

- Homes under $1 million: Full 13% HST rebate, up to $130,000 in savings - Homes from $1 million to $1.5 million: Still receive the full $130,000 rebate - Homes from $1.5 million to $1.85 million: Rebate gradually decreases to $24,000 - Homes over $1.85 million: Existing $24,000 provincial rebate remains

For context, a new semi-detached home in Masonville priced at $650,000 could see approximately $84,500 in HST savings under this new structure. That's a meaningful reduction that could be the difference between affording your ideal neighbourhood or settling for less.

Important Timing Considerations

This isn't a retroactive policy. To qualify, buyers must sign a purchase agreement with a builder between April 1, 2026 and March 31, 2027. If you're currently in the early stages of planning a new construction purchase, this timeline gives you an opportunity to strategically time your decision.

It's also worth noting that the federal 5% portion of the HST rebate still requires changes to the Excise Tax Act, meaning the full plan isn't finalised yet. However, the provincial commitment alone represents substantial savings.

What This Means for London's New Construction Market

London has seen considerable new development activity in recent years, particularly in growing communities like:

- West London (Lambeth, Kilworth Heights) - North London (Stoney Creek, Masonville) - South London (Westminster, White Oaks)

These neighbourhoods offer a mix of townhomes, semi-detached, and detached homes that fall squarely within the rebate's sweet spot. With typical new construction prices ranging from $550,000 to $900,000 in many of these areas, buyers stand to benefit significantly.

First-Time Buyers: Additional Rebates May Apply

If you're a first-time homebuyer, you may qualify for separate provincial and federal rebates if you signed a purchase agreement between March 20, 2025 and December 31, 2030. These programs can stack, potentially increasing your total savings even further.

Should You Wait or Act Now?

With the rebate window not opening until April 2026, you have time to prepare. Consider using this period to:

- Get pre-approved for your mortgage - Research builders and developments in your preferred London neighbourhoods - Understand the full scope of available incentives - Connect with a knowledgeable REALTOR® who can guide you through new construction purchases

Looking Ahead

This HST rebate represents one of the most significant tax incentives for new homebuyers in recent memory. For Londoners considering new construction, it's an opportunity worth exploring carefully.

Whether you're drawn to the established charm of areas like Byron and Wortley Village—where infill developments occasionally emerge—or the fresh builds in London's expanding suburban communities, understanding how these incentives apply to your specific situation is crucial.

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Thinking about purchasing a new construction home in London? Nickey Calford at Calford & Co. can help you navigate the buying process, understand available incentives, and find the right property for your needs. Reach out today to start the conversation.