On March 25, 2026, the Ontario government announced one of the most significant housing affordability measures in recent memory: the full elimination of the 13 percent HST on new homes priced up to one million dollars. For buyers purchasing new construction in Markham and across Ontario, this means potential savings of up to $130,000 on a single home purchase.
The announcement has sent ripples through the Greater Toronto Area real estate market, and Markham, one of the fastest-growing municipalities in York Region with dozens of active new development projects, stands to benefit enormously. Here is everything you need to know about the program, including who qualifies, how much you can save, and what it means for Markham specifically.
What Exactly Changed
Previously, buyers of new homes in Ontario paid 13 percent HST on their purchase, with a partial rebate available for homes under $450,000. That old rebate maxed out at roughly $24,000, leaving buyers of higher-priced homes shouldering a substantial tax burden. In a market like Markham where new construction rarely dips below $700,000, the old rebate was largely irrelevant.
Under the new program, the HST is completely eliminated on new homes priced up to $1,000,000. For homes between $1,000,000 and $1,500,000, buyers receive the maximum rebate of $130,000. For homes between $1,500,000 and $1,850,000, the rebate declines on a sliding scale. Homes priced above $1,850,000 still qualify for the pre-existing $24,000 federal/provincial rebate.
Rebate Amounts by Price Range
| New Home Price | HST Rebate Amount | Notes |
|---|---|---|
| Up to $1,000,000 | Full HST eliminated (up to $130,000) | No HST payable on the home |
| $1,000,001 – $1,500,000 | $130,000 flat rebate | Maximum rebate applied |
| $1,500,001 – $1,850,000 | Declining from $130,000 to $24,000 | Sliding scale based on price |
| Above $1,850,000 | ~$24,000 (pre-existing rebate) | No change from prior rules |
Who Qualifies
One of the most notable aspects of this program is its breadth. Unlike many housing incentive programs, this is not limited to first-time homebuyers. Any buyer, whether purchasing their first home, upgrading, or downsizing, qualifies as long as the home is newly constructed and the purchase agreement is signed within the eligible window.
The key dates are as follows:
- Purchase agreement window: April 1, 2026 to March 31, 2027. The agreement of purchase and sale must be signed during this one-year period.
- Construction start deadline: Construction must begin by December 31, 2028.
- Completion deadline (primary residence): The home must be completed and occupied as a primary residence by December 31, 2031.
- Completion deadline (rental properties): For purpose-built rental properties, the home must be completed by December 31, 2029.
The inclusion of rental properties is significant. Investors and developers building rental housing in Markham can also take advantage of the rebate, which the government hopes will stimulate construction of much-needed rental supply across the province.
Economic Impact: Jobs and Housing Starts
The Toronto Regional Real Estate Board (TRREB) has projected that this measure could stimulate approximately 8,000 additional housing starts across Ontario and create roughly 21,000 jobs in the construction and related trades. For a city like Markham, which has several major developments in various planning and construction stages, this translates into accelerated timelines and potentially more project launches.
Industry analysts expect developers who had been waiting for improved market conditions to move forward with projects that were on hold. Pre-construction sales, which had slowed considerably over the past 18 months due to high interest rates and buyer hesitation, are expected to pick up as the effective price of new homes drops by up to 13 percent.
What This Means for Markham Buyers
Markham is one of the municipalities best positioned to benefit from this program. The city has a significant pipeline of new residential developments at various stages, including:
- Union Village (Unionville) — a master-planned community with townhomes and detached homes in the $900K to $1.4M range, many of which now fall squarely in the maximum rebate zone.
- Springwater (Markville) — with planned townhomes and mid-rise condos, several product types will fall under the $1M full-elimination threshold.
- Highway 7 corridor condos — multiple high-rise projects near the future Yonge North Subway Extension stations, where units typically range from $500K to $900K, meaning many buyers will pay zero HST.
- Wismer Commons and Berczy Village infill — new low-rise developments targeting the $800K to $1.2M range.
For a buyer purchasing a $900,000 townhome in one of these communities, the savings are straightforward: you no longer pay the $117,000 in HST that would have been added to the price. That is money that stays in your pocket, reduces your mortgage, or goes toward your down payment.
A Word of Caution
While the savings are real and substantial, buyers should be aware of a few important details. First, the purchase agreement must be signed within the April 2026 to March 2027 window. Homes purchased before April 1, 2026 or after March 31, 2027 do not qualify. Second, the home must ultimately be used as a primary residence (or as a rental property under the rental stream). Buyers who purchase with the intent to flip before occupancy may not qualify for the rebate.
Third, it is worth noting that developers may adjust pricing upward in response to the increased demand that this program generates. Buyers should continue to do their due diligence, compare prices across projects, and work with a qualified real estate agent who understands the Markham new construction market.
How to Take Advantage
If you are considering buying a new home in Markham, here are the practical steps:
- Start researching new developments now so you are ready to sign when the window opens on April 1, 2026.
- Get a mortgage pre-approval that accounts for the reduced effective price.
- Work with a real estate agent experienced in pre-construction sales in York Region.
- Ask your lawyer to confirm the HST rebate terms are properly reflected in your agreement of purchase and sale.
- Keep records of your purchase agreement date, as it must fall within the eligible window.
This is one of the most buyer-friendly policy changes Ontario has introduced in years. For Markham residents looking to buy new construction, the math just got significantly better.
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