If you have owned a home before and you are thinking about buying a brand-new home in London, Ontario, there is a date you need to know: March 31, 2027. That is the last day to sign a purchase agreement with a builder and still qualify for Ontario tax rebates on a new home that can be worth tens of thousands of dollars. Sign one day later, on April 1, 2027, and as a repeat buyer you generally get none of that Ontario rebate money back.
This is not a small detail. On a new $650,000 townhouse in London, the difference can be about $84,500. That is real money, and it comes down to one thing: the date written on your agreement.
This article explains, in plain words, what is changing, who it affects, who it does not affect, and what to do about it. It is general information, not tax or legal advice. Tax rules have many details, and your own situation may be different, so check with your lawyer or accountant before you sign anything.
First, what is HST on a new home?
When you buy a brand-new home in Ontario, or a home that was completely rebuilt, you pay a 13% sales tax called HST on the price. HST is short for Harmonized Sales Tax. Think of it like the tax you pay at a store, but on a house.
On a $650,000 new townhouse, 13% is $84,500. That is on top of the price of the home.
When you buy a resale home, a home someone already lived in, you do not pay HST on the price. This whole article is only about new homes and homes that were substantially renovated, which means almost completely rebuilt. If you are buying a resale home, none of this applies to you.
What Ontario gives back right now
Ontario currently has two layers of help for people who buy a new home to live in. Both depend on the date you sign your agreement with the builder.
Layer 1: the regular Ontario rebate, up to $24,000. For years, Ontario has returned part of the provincial portion of the HST on a qualifying new home. The provincial portion is 8% of the 13% total. The rebate returns 75% of that provincial part, up to a maximum of $24,000. This is the rebate that most repeat buyers, people who have owned a home before, have relied on.
Layer 2: the temporary enhanced relief, up to $130,000. In its 2026 budget, Ontario added a bigger, temporary program. For agreements signed between April 1, 2026 and March 31, 2027, a buyer can get back the full 13% HST on a new home priced up to $1 million. That is up to $80,000 of the provincial part plus up to $50,000 of the federal part, for a total of up to $130,000. The relief gradually gets smaller for homes priced between $1.5 million and $1.85 million.
Together, for a new home up to $1 million, a buyer who signs in this window can pay zero HST.
What is ending, and when
Ontario announced in its fall economic statement on October 29, 2026 that both layers end for repeat buyers after March 31, 2027.
Here is the change in plain words:
If you sign your agreement with the builder on or before March 31, 2027, and the sale closes by December 31, 2035, you can still use the rebates described above, including the regular rebate of up to $24,000.
If you sign on or after April 1, 2027, and you have owned a home before, Ontario will generally no longer give you that $24,000 rebate. The bigger temporary relief also ends on the same date. So a repeat buyer who signs after the deadline generally gets no Ontario rebate on a new home.
There is one small exception worth knowing. The older federal rebate, a separate small program, may still return up to about $6,300, and only on homes valued at $450,000 or less. For most new homes in London, which cost more than that, this small federal rebate does not apply.
Ontario is also ending a similar rebate for new rental properties, the Ontario New Residential Rental Property Rebate, on the same timeline. That matters if you are an investor buying a new home to rent out, rather than to live in.
A real example with London numbers
Imagine a family in London that already owns a home and wants to move up to a new $650,000 townhouse to live in.
They sign with the builder by March 31, 2027. The HST on the home is $84,500, and the rebates can return the full $84,500. They pay $0 in HST.
They sign on April 1, 2027 or later. As repeat buyers, they generally get no Ontario rebate. They pay the full $84,500 in HST.
Same house, same family, same builder. The only difference is the date on the agreement. That is about $84,500.
This example uses a $650,000 home because many new townhouses and condos in London are priced near that range. On an $800,000 new townhouse, the HST is $104,000, and the same logic applies: sign in the window and the rebates can return the full $104,000, sign after and a repeat buyer generally gets none of it back.
Who is NOT affected: first-time buyers keep their own path
This is the part many people get wrong, so read it carefully.
If you have never owned a home before, you have a separate, longer-lasting set of rebates, and the March 31, 2027 deadline does not take them away.
Federal first-time buyer rebate, up to $50,000. The federal government already made this law in March 2026. It returns the 5% federal part of the HST on a qualifying new home up to $1 million, up to $50,000, and it gradually gets smaller for homes up to $1.5 million. It applies to agreements signed on or after March 20, 2025 and before 2031. The federal Budget 2026, presented on November 5, 2026, kept this rebate in place and did not change it.
Ontario first-time buyer rebate, up to $80,000. Ontario mirrors the federal program with a rebate of the 8% provincial part, up to $80,000, on the same kind of timeline.
Together, a first-time buyer can still get up to $130,000 back on a new home up to $1 million, even after March 31, 2027, as long as the agreement is signed before 2031 and the other conditions are met.
So the deadline matters most for one group: people who have owned a home before and want to buy a new one. First-time buyers have their own door, and it stays open longer.
What counts as a "first-time buyer"?
In general, a first-time buyer is someone who has never owned a home to live in before. The exact definition has details, for example about a spouse or common-law partner who owned a home, and about homes owned in other countries. If you are not sure whether you count as a first-time buyer, ask your lawyer or accountant before you sign, because it changes which rebates you can use.
Three details that can catch people out
1. The date that matters is the date you sign, not the date you move in. The agreement of purchase and sale is the contract you sign with the builder. That date decides which rules apply. The sale must also close, meaning the purchase is completed and the home becomes yours, by December 31, 2035, if you signed by March 31, 2027.
2. Cancelling and re-signing does not work. If you signed an agreement before April 1, 2026 and you cancel it just to sign a new one inside the window, the rules treat that as outside the window. The same kind of anti-avoidance rule applies in the other direction. Do not try to game the dates; talk to your lawyer first.
3. Assignments have their own rule. An assignment is when someone who signed an agreement with a builder sells that contract to another buyer before the home is finished. For an assignment to keep the rebate, both the original agreement with the builder and the assignment agreement must be signed by March 31, 2027.
What should you do if you are thinking about a new build?
If you have owned a home before and you want a new build in London, talk to your realtor and your lawyer now, while there is still time before March 31, 2027. Four months may sound like a lot, but choosing a builder, a lot, and a floor plan takes time, and popular models can sell out.
If you are a first-time buyer, the March 31, 2027 deadline is less urgent for you, because your own rebates run to 2031. Still, the same advice applies: confirm your eligibility in writing with your lawyer before you sign, because the rules are detailed and a mistake can cost thousands.
If you are buying a resale home, this change does not affect you at all, because resale homes do not have HST on the price. But if you are choosing between a new build and a resale home, this deadline is one more factor to weigh.
If you are an investor buying a new rental property, ask your accountant about the end of the rental property rebate, because your numbers change too.
The bottom line
Ontario is closing a door on March 31, 2027 for people who have owned a home before and want to buy a new one. Sign by that date and the rebates, up to $130,000 on a home up to $1 million, and at least the regular $24,000, can still apply. Sign after it and, in general, they do not. First-time buyers keep their own rebates until 2031, and resale buyers are not affected at all.
If a new build in London is on your mind, the smartest move is a short conversation now, not a rushed decision in March. We are happy to walk through it with you in plain words, with no pressure and no jargon.
This article is general information only and is not tax, legal, or financial advice. Rebate amounts, dates, and eligibility rules can change, and they come from Ontario's fall economic statement of October 29, 2026, Ontario's 2026 budget, and the federal Budget 2026 of November 5, 2026. Confirm your own eligibility with your lawyer or accountant before signing an agreement.
Paola Cano, Real Estate Broker, and Jose Ramirez, Sales Representative, help buyers and sellers across London, Ontario and surrounding areas, in English and Spanish. If you are thinking about a new build, a resale home, or your first home, reach out and we will explain your options in simple words.
— Paola Cano & Jose Ramirez, Thrive Realty Group Inc., Brokerage, London, Ontario.