The new-home HST rebate in Durham: up to $130,000 back if you sign before March 31, 2027

On a $900,000 new home in Bowmanville or Brooklin, that is about $117,000, roughly $93,000 more than the old rules gave.

First-time buyers have their own rebates with a longer deadline, which matter most on homes between $1 million and $1.5 million.

Rules as of October 20, 2026. Parts of this program are new and the forms are still being rolled out. Confirm your eligibility with your real estate lawyer before you count on any of this money.

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Why this matters in Durham

Durham is one of the busiest new-home markets in Ontario: Bowmanville and Courtice in Clarington, north Oshawa, Brooklin in Whitby, and Seaton in Pickering. Most new freehold towns and many detached homes here are priced under $1 million, which is exactly where the rebate is at its full strength.

For comparison, the average Durham home sold for about $828,000 in September 2026. On a new home at that price, the HST is about $108,000, and under this program all of it can come back.

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The two programs, in plain words

For everyone (the April 2026 to March 2027 window)

How much you get by price (price before HST):

The dates that count:

• Agreement with the builder signed April 1, 2026 to March 31, 2027. The signing date counts, not the closing date.
• Construction started by December 31, 2028.
• Home substantially complete by December 31, 2031.
• The home is your main residence, or a close relative's.

For first-time buyers (longer window)

• Federal first-time buyer rebate↗ (opens in a new tab): up to $50,000 (the 5% federal part) on homes up to $1 million, shrinking to nothing at $1.5 million.
• Ontario first-time buyer rebate: up to $80,000 (the 8% Ontario part), with the same $1 million to $1.5 million phase-out.
• Dates: agreement signed from March 20, 2025 and before 2031, construction started before 2031, and substantially complete before 2036.
• Who counts as a first-time buyer: 18 or older, a Canadian citizen or permanent resident, and you have not lived in a home owned by you or your spouse or partner, anywhere in the world, in this year or the previous four.

Which one applies? You cannot double-dip. The Ontario pieces together top out at $80,000, and the federal pieces at $50,000. Under $1 million, both routes end in the same place: the full HST back. Between $1 million and $1.5 million, the all-buyers program keeps you at $130,000 while the first-time buyer rebates start shrinking, so first-time buyers should compare. If you sign after March 31, 2027, only first-time buyers still get the enhanced relief.

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What it is worth on real Durham prices

Old rules: for homes at these prices, the old federal rebate was effectively zero and the Ontario rebate topped out at $24,000. Builders usually priced that $24,000 in already.

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The fine print that trips people up

1. Resale homes don't qualify. Resale homes have no HST, so there is nothing to rebate. This is only for new homes from a builder (or one you build yourself).
2. Assignments are tricky. If you take over someone else's pre-construction contract, both the original agreement and the assignment have to fall inside the window. A contract first signed in 2022 doesn't qualify, even if you take it over in 2026.
3. Re-signing an old deal usually doesn't help. Amended or replaced agreements are generally treated as signed on the original date.
4. It has to be your home. Investors buying to rent are under a different rental rebate with different rules.
5. The builder's credit is not proof you qualify. If the builder credits you the rebate and it later turns out you weren't eligible, the CRA can ask you to pay it back.
6. Construction delays can matter. If the project doesn't start by the end of 2028, or isn't substantially complete by the end of 2031, the enhanced relief can be lost. Ask about the builder's track record.
7. Paperwork is still catching up. As of September 2026, claims that include the enhanced Ontario rebate were being filed by mail, with online filing expected later in the fall.

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Before you sign with a builder: the checklist

1. Ask how the price treats the rebate. Have the builder show you, in writing, whether the price already includes the new relief, whether they will credit it on closing, or whether you claim it yourself from the CRA.
2. Get the HST and rebate lines in the agreement. You want to see them spelled out, not described verbally in the sales office.
3. Ask for a cap on closing adjustments. New homes come with extras resale homes don't have: utility connections, the Tarion enrolment fee↗ (opens in a new tab), and development charge increases. A cap in writing protects you.
4. Plan for the deposits. Builders typically want 10% to 20% in instalments over the first year, well before you get the keys.
5. Confirm the construction dates. Ask when construction will start and when occupancy is expected, and compare those against the 2028 and 2031 deadlines.
6. Use your cooling-off period. On new condos you get 10 days↗ (opens in a new tab) to back out after signing. Have a real estate lawyer review the agreement in that time.
7. Get the rental question right. If there is any chance you will rent the home instead of living in it, tell your lawyer before you sign. It changes which rebate applies.

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Should you buy new instead of resale right now?

It depends on the home, the builder and your timeline, but the math has changed:

• New: on a home under $1 million, the full HST comes back. You also get a new-home warranty, modern layouts and lower maintenance for years. The trade-offs are waiting for construction, paying deposits up front, closing adjustments, and builder risk.
• Resale: you move in within weeks, the neighbourhood is established, and the price is negotiable in today's slower market. No HST to begin with, but no rebate either.

With Durham resale prices about 5% below last year and builders now able to pass on up to $130,000 of tax relief, it is worth pricing both before you decide. I can walk you through specific builders and resale options side by side.

See the full cost to buy a home in Durham → · Book a call →

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This guide is general information, not legal, tax or financial advice. Rebate rules are new, some details are still being finalized by the Canada Revenue Agency and the Province of Ontario, and eligibility depends on your situation and your builder's agreement. Confirm with your real estate lawyer or a tax professional before you rely on any rebate.

Natalia Halenda, Sales Representative, RE/MAX Jazz Inc., Brokerage, 21 Drew Street, Oshawa ON L1H 4Z7. Direct 905 242 6568. Not intended to solicit buyers or sellers already under contract.