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Almost two months since Ontario’s HST rebate window opened, new home sales data for April is showing how the program’s first month is impacting the GTA market.
A total of 1,100 new homes were sold in the GTA in April, according to data compiled by Altus Group for the Building Industry and Land Development Association (BILD). That’s nearly triple what it was at the same time last year, when 384 new homes were sold.
The sale data is for both newly built condo units and single-family homes in the GTA.
When broken down, the most considerable rise in sales was for single-family homes, which include detached, linked and semi-detached houses and townhouses, according to BILD. In April 901 homes were sold, up from 241 in April 2025.
Condo units still trailed behind, with 199 selling in April, up from 143 units this time last year.
The data shows that the HST rebate is having its “intended impact” on buyers, said Justin Sherwood, BILD’s chief operating officer.
“Our expectation is that this will continue to lead to a recovery back to more normal sales levels, and those are the 10-year average,” he said, noting that home sales typically happen in the spring and fall, so sales can be expected to dip in the summer.
According to BILD, the 10-year average for new home sales for the month of April is 744 for single-family homes and 1,673 for condo units.
Sherwood said the numbers are a “very positive” sign for the industry, which had previously warned about waning sales possibly putting tens of thousands of construction jobs at stake.
A total of 1,100 new homes were sold in the GTA in April, according to data compiled by Altus Group for BILD. That’s nearly triple what it was at the same time last year. (Altus Group/Building Industry and Land Development Association)
Rebate still needs federal legislation to pass
In March the Ontario government announced plans to remove the Harmonized Sales Tax (HST) on new homes for one year, touting it as a measure that would “help families realize the dream of homeownership” and spur more home construction.
The full tax rebate, which was part of the 2026 budget, applies to buyers of eligible new homes valued up to $1 million.
Since the rebate removes the full 13 per cent HST on eligible homes, it requires legislative changes from both the federal and provincial governments because 5 per cent of HST comes from the federal government and 8 per cent from the province.
In April, 901 single-family homes were sold in the GTA, up from 241 in April 2025. Condo units still trailed behind, with 199 selling in April, up from 143 units sold the same time last year. (Altus Group/Building Industry and Land Development Association)
Ontario passed its budget, so the provincial legislative change to implement the rebate received royal assent. The federal government is still in the process of changing its legislative component.
So far the federal bill has only gone through its first reading, so it’s not entirely clear what the official guidance is on how to get the rebate.
One possibility could include the builder claiming the rebate and taking it out of the cost of the home, meaning the buyer won’t have to pay for it in the first place or deal with any paperwork related to it.
Another option could place the onus on the buyer to fill out an application to get the rebate through the Canadian Revenue Agency.
