Buying a New Home in Markham? What the Ontario HST Relief Deadline of March 31, 2027 Means for You

Buying a New Home · Markham

By Michael John Lau, REALTOR® · Kaizen Real Estate Team, eXp Realty · November 2, 2026

A date on the calendar that could change your budget

Buying a new home in Markham is about more than square footage. It is where your children will grow up, where family dinners will happen, and where your next chapter begins.

Right now, one date matters more than most. In its 2026 Fall Statement, published October 29, 2026, the Ontario government confirmed temporary HST relief of up to $130,000 on eligible new homes. For most buyers, the agreement with the builder needs to be signed by March 31, 2027.

If a new home is part of your plan, the timing of your decision now carries real weight. Here is what the relief is, who qualifies, and how to protect yourself before you sign.

Two Markham families, one deadline

Picture two Markham families. Both have saved for years. Both fall in love with a new home from a builder, and both homes are priced at $1.2 million.

The first family does their homework early. They review the agreement with their lawyer, confirm their eligibility, and sign on March 30, 2027. If they meet the rules, their home falls in the tier that receives a flat $130,000 in HST relief.

The second family waits. They want one more weekend to think, then one more after that. They sign on April 2, 2027. By then, the enhanced relief window has closed, and the older New Housing Rebate is no longer available for new deals either.

Same price. Same type of home. A very different outcome, separated by a few days.

These families are an illustration, not real clients. Every purchase is different, and the right home still matters more than any rebate. But the timing is real, and it deserves a place in your plan.

Signing before the deadline versus after it

Here is how the picture changes depending on when, and what, you buy.

How the Ontario HST relief on new homes works

The relief has two parts that work together:

• Provincial relief of up to $80,000. This applies to the 8% provincial portion of the HST, combined with Ontario's existing New Housing Rebate.
• A top up of up to $50,000. Called the Ontario New Home Affordability Payment, it is equal to up to 100% of the 5% federal portion of the HST. Anyone who is eligible for and receives the provincial relief is also eligible for the top up.

Together, the two parts add up to a maximum of $130,000.

How the price of your home changes the amount

The relief is set by the value of the new home, using price tiers at $1 million, $1.5 million and $1.85 million:

Who qualifies, and who does not

• New or substantially renovated homes bought from a builder can qualify.
• The agreement of purchase and sale with the builder generally has to be signed between April 1, 2026 and March 31, 2027.
• Resale homes do not qualify. If you are buying from another homeowner, this relief does not apply.

The older rebate is ending too

Ontario's existing New Housing Rebate, worth up to $24,000, is being eliminated. It will generally not be available for new purchases that begin on or after April 1, 2027. That makes March 31, 2027 an important date for new home buyers at every price point, not only those under $1.5 million.

How to apply

• The provincial relief is claimed through Canada Revenue Agency forms.
• No separate Ontario application is needed for the top up.
• Ontario expects to begin issuing top up payments in early 2027.

Watch the federal budget on November 5, 2026

The Ontario top up is reduced by the federal portion of any HST rebate you are entitled to claim, including the federal First Time Home Buyers' Rebate. That means federal changes can affect how your total is calculated. Keep an eye on the November 5, 2026 federal budget for any change to the federal rebate.

Before you sign: check the builder and protect your deposit

A strong rebate is only valuable if the home gets built and your deposit is safe. Two checks belong at the top of every new home buyer's list.

1. Review the builder's track record

In Ontario, every new home builder and seller must be licensed by the Home Construction Regulatory Authority (HCRA). Building or selling new homes without a licence is illegal.

The free Ontario Builder Directory lets you look up any builder before you pay a deposit. It shows:

• Licence status, and any conditions on the licence
• Years of activity and the number of homes built
• Regulatory actions taken by the HCRA, including charges and convictions
• Warranty information provided by Tarion

If a builder is not listed, treat that as a serious warning sign. A municipal building permit on its own is not proof that a builder is licensed.

2. Understand your Tarion deposit protection

Tarion protects new home deposits if your builder goes bankrupt, fundamentally breaches the purchase agreement, or you have a legal right to treat the agreement as terminated.

For freehold homes, timing matters here too. Since January 1, 2026, freehold buyers who notify Tarion within 45 days of signing qualify for the maximum coverage available. Buyers who register later, or not at all, may receive a lower amount. Condo buyers do not need to notify Tarion.

Tarion also advises speaking with a lawyer before treating a purchase agreement as terminated, so your claim stays protected.

Michael John Lau, REALTOR®, encourages every new home buyer to complete these checks early, before excitement and deadlines start to drive the decision.

Frequently asked questions

Keep reading

• How Much HST Can a Markham First Time Buyer Actually Save?
• FHSA, Home Buyers' Plan and Land Transfer Tax Refund: A Markham Buyer's Guide
• The True Cost of Buying a Home
• How Does the Buying Process Work in Markham?

Sources: Ontario 2026 Fall Statement, Annex (published October 29, 2026); Tarion; Home Construction Regulatory Authority. Program details can change. Confirm current rules with your lawyer and the Canada Revenue Agency.