New construction and pre-construction homes in the GTA: 2026 guide
The $130K HST rebate, how to choose a builder, real worked examples and every city’s numbers.
By Inderpal Sidhu · Updated October 2026 · 10 min read
This is the GTA new-construction hub: how the 2026 HST rebate works, how to pick a builder, real worked examples and a page for every city. The short version: new freehold townhomes and detached homes are where the value is right now, because Ontario rebates up to $130,000 of HST on a new home bought as a primary residence (agreements signed April 1, 2026 to March 31, 2027). In May 2026, GTA low-rise new-home sales ran 26% above their 10-year average, while new condo sales were 89% below theirs.
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Freehold townhomes and detached homes selling now across York, Peel, Halton and Durham: prices, deposits, incentives and occupancy dates.
The 2026 new-home HST rebate, explained
- Any buyer, primary residence (Ontario): full 13% HST relief up to a $1M price, a flat $130,000 from $1M to $1.5M, phasing down to $24,000 at $1.85M. Agreement signed April 1, 2026 to March 31, 2027; construction must start before 2029 and finish before 2032.
- First-time buyers: the federal First-Time Home Buyers’ GST rebate (up to $50,000, law since March 2026) and Ontario’s first-time rebate (up to $80,000, applications open since June 5, 2026) cover agreements back to March 20, 2025.
- Resale homes do not qualify, because there is no HST on a resale home.
- Long-term rentals have a separate program with an earlier completion deadline.
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New-home HST rebate and down payment estimate
Estimate only. Ontario rebate for any buyer applies to agreements signed Apr 1, 2026 to Mar 31, 2027 (primary residence; construction and completion deadlines apply). First-time buyer rebates also cover agreements from Mar 20, 2025. Most builders price "HST included, rebate assigned to builder". Confirm with your lawyer.
New homes by city: September 2026 resale benchmarks
Compare new-build pricing against what resale detached homes actually sell for, and how much HST relief a new home at that price would carry.
| City | Avg. resale detached | Months of inventory | HST relief if new |
|---|---|---|---|
| Toronto | $1,562,966 | 4.6 | $110,930 |
| North York | $1,562,966 | 4.6 | $110,930 |
| Etobicoke | $1,562,966 | 4.6 | $110,930 |
| Markham | $1,534,139 | 4.1 | $119,661 |
| Richmond Hill | $1,580,643 | 5.6 | $105,577 |
| Vaughan | $1,599,218 | 4.9 | $99,951 |
| Newmarket | $1,055,125 | 4.2 | $130,000 |
| Aurora | $1,375,712 | 4.9 | $130,000 |
| Stouffville | n/a | None | n/a |
| King | $2,131,250 | 11.4 | $24,000 |
| Brampton | $1,001,613 | 4.7 | $130,000 |
| Mississauga | $1,285,467 | 4.8 | $130,000 |
| Caledon | $1,147,898 | 6.6 | $130,000 |
| Oakville | $1,740,421 | 4.9 | $57,187 |
| Burlington | $1,363,803 | 3.6 | $130,000 |
| Milton | $1,265,806 | 3.8 | $130,000 |
| Halton Hills | $1,134,292 | 4.1 | $130,000 |
| Pickering | $1,080,698 | 3.7 | $130,000 |
| Ajax | $919,504 | 3.0 | $119,536 |
| Whitby | $995,368 | 2.9 | $129,398 |
| Oshawa | $748,346 | 3.6 | $97,285 |
| Clarington | $872,156 | 3.2 | $113,380 |
How to choose a pre-construction project: my 10-point check
- Builder licence and history. Look the builder up on the HCRA Ontario Builder Directory: licence status, homes built in the last 10 years, and any regulatory actions.
- Tarion warranty enrolment. New freehold and condo homes must be enrolled. Ask for the enrolment number.
- Deposit structure and where it is held. Freehold deposits above the Tarion-protected amount carry more risk. Condo deposits are held in trust under the Condominium Act.
- Firm vs. tentative occupancy dates. Read the Tarion Statement of Critical Dates. Delays beyond it can trigger compensation.
- Cooling-off period. New condos come with a 10-day cooling-off period. Freehold homes do not by law, so make your offer conditional on a lawyer review.
- Closing adjustments. Development levies, utility hook-ups and Tarion fees are added at closing. Ask for a cap in writing.
- HST and rebate wording. Is the price HST-included with the rebate assigned to the builder? What happens if you do not qualify?
- Assignment clause. If plans change, can you assign before closing, and what is the fee?
- The site and what gets built around it. Check the city’s development applications for towers, roads, schools and transit nearby.
- Resale comparison. Compare the per-square-foot price with recent resale sales nearby. New is not always better value.
Case studies: what the numbers look like
Worked examples using the current rules (agreements signed April 1, 2026 to March 31, 2027). These are illustrations, not client stories. Your builder’s pricing, closing costs and lender will change the numbers.
| Example | HST at 13% | Est. HST relief | Min. down payment |
|---|---|---|---|
| $999,000 new freehold townhome, primary residence | $129,870 | $129,870 | $74,900 |
| $1,250,000 new detached home, primary residence | $162,500 | $130,000 | $100,000 |
| $799,900 new townhome, first-time buyer | $103,987 | $103,987 | $54,990 |
- Case 1, $999,000 townhome: under $1M, the relief covers the full 13% HST, so the home is effectively HST-free. Because it is under $1.5M, it can be bought with an insured mortgage and as little as $74,900 down, with up to a 30-year amortization on a new build.
- Case 2, $1.25M detached: between $1M and $1.5M the relief is a flat $130,000. You still need only $100,000 minimum down, not 20%. Most buyers still assume they need $250,000.
- Case 3, $799,900 first-time buyer: relief of about $103,987. A couple with two FHSAs can put in up to $16,000 a year (up to $80,000 lifetime) toward the $54,990 minimum down payment, tax-deductible.
What about pre-construction condos?
New condo sales are near record lows and many investors who bought in 2021–2022 are trying to exit. For an end user that can mean discounted assignments, but check the original price, the assignment fee, the closing date and whether you can get a mortgage on the appraised value. I can pull assignment listings for any building.
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New listings below the original purchase price, by city and budget.
Related: Ontario pre-construction rules and red flags · Roadmap to home ownership · Legal basement guide
FAQ
Which GTA areas have the most new low-rise homes in 2026?
The biggest supply is in master-planned communities such as Seaton (Pickering), north Brampton, Mayfield West (Caledon), south and west Milton, North Oakville, Brooklin (Whitby), north Oshawa and north Markham.
How much is the HST rebate on a new home in Ontario?
For agreements signed April 1, 2026 to March 31, 2027 on a primary residence: full 13% HST up to $1M, $130,000 from $1M to $1.5M, phasing to $24,000 at $1.85M.
Do I need 20% down on a new home over $1 million?
No. Insured mortgages are allowed up to $1.5 million. On $1.25M the minimum is $100,000. New builds can use up to a 30-year amortization.
Is buying pre-construction safe?
It can be, if you check the builder on the HCRA Ontario Builder Directory, confirm Tarion enrolment, read the Statement of Critical Dates, cap closing adjustments and have a lawyer review before you are firm.
Questions? Call, text or WhatsApp me. I answer personally.
Call or text 647-338-6875Sources
Ontario new-home HST rebates: in force and coming
Gowling WLG: Ontario expands HST relief
BILD/Altus new-home sales, May 2026
TRREB Market Watch, September 2026
HCRA Ontario Builder Directory
General information only, not legal, tax or mortgage advice. Rebate and lending rules change; confirm with a real estate lawyer, mortgage professional and the CRA before you sign. Inderpal Sidhu, Salesperson, HomeLife Silvercity Realty Inc., Brokerage.