Ontario Announces Elimination of Legacy $24,000 HST Rebates

Changes as of April 1st, 2027

By David Young

Following our extensive coverage since March, 2026 ^{[1] [2] [3] [4]} of the temporary expansion of the HST Rebate on pre-construction homes under the First Time Home Buyer Rebate (FTHB Rebate) and Ontario Enhanced New Housing Rebates (Ontario ENHR), the province has issued their 2026 Ontario Fall Economic Statement.^[5]

In the 2026 Ontario Budget published in March 2026^[6], the government was considering eliminating the existing provincial HST New Housing Rebate (NHR) and New Residential Rental Property Rebate (NRRPR), known together as “legacy rebates”.

In the 2026 Ontario Fall Economic Statement the provincial government has confirmed that they are proceeding with the elimination of the legacy rebates as of March 31^st, 2027.

Unfortunately, this means that once the temporary Enhanced HST Rebate window expires on March 31^st, 2027 the system will not be reverting to the old legacy rebate rules. The legacy rebates will end alongside the temporary Enhanced HST Rebate for repeat buyers.

For over two decades, the legacy rebates have provided a standard provincial rebate of up to $24,000, depending on the net purchase price. Any Agreement of Purchase and Sale (APS) entered into on or after April 1^st, 2027 will no longer qualify for these legacy rebates.

There will be a “grandfathering” clause for existing Agreements of Purchase and Sale signed on or before March 31^st, 2027 as long as the purchase transaction closes by December 31^st, 2035.

• APS signed on or before March 31^st, 2026: may be eligible for up to $24,000 legacy rebate, if closed by Dec 31^st, 2035;
• APS signed April 1^st, 2026 to March 31^st, 2027: may be eligible for up to $130,000 Ontario ENHR (see previous articles for various closing dates);
• APS signed after April 1^st, 2027: no rebate, $0.

Further, if it is an assignment sale transaction, both the original builder APS and Assignment APS must be signed on or before March 31^st, 2027.

Builder Pricing Adjustments
For years Ontario builders have automatically factored the $24,000 legacy rebate into their advertised “sticker prices”, assuming that the buyer would be living in the property as their primary place of residence and assign the rebate back to them.

With the elimination of the rebate, builders will no longer have this $24,000 buffer to deduct. This means that, practically speaking, the base advertised price of pre-construction homes will effectively increase by $24,000 overnight for purchases signed on or after April 1^st, 2027.

Provincial fiscal reality
If you are wondering why the province is ending the legacy rebate, the answer lies in the provincial budget. To fund the massive upfront economic stimulus of the temporary ENHR program, the government had to balance the books on the back end.

According to the "Summary of Measures" chart of the Fall Economic Statement^[7], the temporary Enhanced HST relief (covering both provincial ENHR and the Federal ONHAP) is estimated to cost the province $1.54 billion between 2026 and 2029.

To offset this, the elimination of the legacy rebates is an attempt to claw back tax revenue starting next year. The chart projects that eliminating these legacy rebates will save the government $24 million in 2027–28, and $250 million in 2028–29 to help subsidize the current temporary relief program.

First Time Home Buyer HST Rebate survives

This announcement does not impact the already legislated Federal and Provincial First Time Home Buyer Rebates ^{[8] [9]}where first time home buyers:

• Sign the APS between March 20^th, 2025 and December 31^st, 2030;
• Construction of the home begins on or before December 31^st, 2030; and
• The home is substantially completed on or before December 31^st, 2035.

If you have any questions about calculating your rebate, the changes or existing rules of HST on pre-construction properties, please reach out to David Young at 365-509-2029 Ext.106 or dyoung@sorbaralaw.com