The Ontario government recently announced a proposed HST rebate for new home buyers who sign purchase agreements between April 1, 2026 and March 31, 2027.
On paper, it’s a big number.
For homes priced between $1M and $1.5M, the rebate could be as much as $130,000. But before that headline pulls you in, there are a few things worth understanding.
First, the fine print:
Construction must begin by December 31, 2028, and be substantially completed by December 31, 2031.
Second, this hasn’t actually passed yet.
And third, it only applies to pre-construction homes and condos.
So What Happens Next?
The assumption is that if this gets approved, developers may adjust pricing to reflect the rebate.
But that’s far from guaranteed.
And even if they do… you have to ask yourself:
Are you actually getting a deal, or just paying today for a future promise?
The Bigger Question: Does Pre-Construction Even Make Sense Right Now?
Before chasing a rebate, this is the real conversation.
According to Urbanation, unsold pre-construction condos are currently averaging around $1,189 per square foot.
Meanwhile, in the resale market, we’re seeing condos, some in great buildings, trading at or below $1,000 per square foot.
So the question becomes:
Why pay more for something you can’t walk through, can’t fully evaluate, and may not see for years?
Because with pre-construction, you’re buying:
- From a floor plan
- With an uncertain closing timeline
- Without firm maintenance fees or property taxes
- And with the possibility that what you imagined… isn’t exactly what you get
(Yes, even that awkward pillar in the middle of your living room.)
What We’re Seeing on the Ground
In today’s market, resale is offering something pre-construction can’t:
Clarity.
- You know exactly what you’re buying
- You can walk the unit, the building, and the neighbourhood
- You have a firm closing date
- And in many cases, you can negotiate
That last point matters more than ever right now.
Our Take
The HST rebate makes for a great headline.
But it doesn’t automatically make pre-construction the better decision.
Right now, resale is often delivering better value, more certainty, and far less risk.
And in this market, that’s what smart buyers are prioritizing.
Sometimes the opportunity isn’t in the incentive, it’s in the property that already exists.
Ultimately savvy buyers aren’t waiting for incentives, they’re quietly taking advantage of what’s already in front of them.
If you know of anyone who needs to buy or sell, please make sure they call Davelle.
Want to Make This Market Work for You?
As always, if you have questions about the market, or would like an updated home evaluation, we’re here to help.
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