Within one week this fall, both levels of government that tax Toronto real estate released their big fiscal documents. Ontario tabled its 2026 Fall Economic Statement on October 29, 2026, and Finance Minister François-Philippe Champagne tabled Federal Budget 2026 on November 5, 2026. Here is what each one means for buyers, sellers and investors in Toronto and the GTA — including the one change that matters most for new-home buyers and comes with a hard deadline.
The Short Version
No change to GST relief on new homes. The federal budget leaves the First-Time Home Buyers' GST Rebate (up to $50,000 on new homes) exactly as it is. It does not extend GST relief to repeat buyers.
Ontario's up-to-$130,000 HST relief is confirmed — and still ends March 31, 2027. Agreements signed with a builder from April 1, 2026 to March 31, 2027 can qualify.
Ontario's $24,000 new housing rebate is going away for builder agreements signed on or after April 1, 2027. The Fall Statement set out the transition rules. This is the biggest practical change for repeat buyers and investors.
Ottawa is loosening mortgage insurance for small multiplexes from February 1, 2027, and proposes a higher price ceiling for optional mortgage insurance.
The foreign buyer ban is proposed to run to January 1, 2029, with newly built homes exempted.
Federal Budget 2026 (November 5, 2026)
The budget, titled "Masters of Our Destiny," projects a deficit of roughly $62 billion for 2026–27, and leans on execution of programs already announced rather than new homebuyer incentives. CREA's response was that it "offers limited measures to address the structural barriers to attainable homeownership." The items that matter for Toronto real estate:
GST on new homes: unchanged
The budget lists the First-Time Home Buyers' GST Rebate — saving up to $50,000 on a new home — among measures already delivered. There is no new GST measure for new homes, no change to the price thresholds, and no expansion to buyers who have owned before. For how the federal and Ontario rebates stack today, see our guide to how Ontario's enhanced HST rebate actually works and our GST & HST Rebates page.
Mortgage changes
Small multiplexes (effective February 1, 2027): new mortgage insurance flexibilities for three- and four-unit homes. Construction financing for newly built triplexes and fourplexes can be insured up to 90% of value, with no maximum property value and no requirement to live in one of the units. Amortizations of up to 30 years are available where the builder keeps and rents all the units. Private mortgage insurers will also be able to insure 5- to 50-unit properties, competing with CMHC.
Optional mortgage insurance: Ottawa proposes raising the price ceiling for optional insurance (for buyers with 20% down) from $1 million to $1.5 million, with 30-year amortizations where at least one borrower is a first-time buyer or the home is newly built. No start date has been confirmed.
Transparency: the Bank of Canada will publish insured mortgage rate information, the CRA will build an income verification service for lenders, and Ottawa will consult on prepayment penalties.
For anyone planning a small rental build, the February 2027 multiplex changes are worth reading alongside our Toronto Multiplex Playbook for 2026.
Foreign buyer ban
The ban on foreign purchases of Canadian residential property is proposed to be extended two years, to January 1, 2029, while exempting new residential properties. Legislation is still to come.
Housing supply
Build Canada Homes gets an additional $13 billion over ten years, bringing total capitalization to $45 billion, with a target of about 200,000 new homes over the next decade.
Build Communities Strong Fund: $51 billion over 10 years, part of which flows to provinces to help lower municipal development charges.
Homelessness and supportive housing: $11.2 billion over four years starting in 2027–28, plus $17.8 billion in later years.
Builders: a "Productivity Mega Deduction" lets businesses, including homebuilders, immediately expense machinery and equipment acquired on or after September 15, 2026.
What did not change
No changes to the First Home Savings Account rules, the RRSP Home Buyers' Plan, or the GST new housing rebates.
Ontario's 2026 Fall Economic Statement (October 29, 2026)
Ontario now projects a $16.9 billion deficit for 2026–27 and a return to balance in 2029–30. The housing measures:
The temporary up-to-$130,000 HST relief is confirmed
Buyers of new or substantially renovated homes from a builder, with agreements signed between April 1, 2026 and March 31, 2027, can receive:
Home value | HST relief |
Up to $1,000,000 | 100% of the 13% HST, up to $130,000 |
$1,000,000 – $1,500,000 | Flat $130,000 |
$1,500,000 – $1,850,000 | Partial relief, declining with value |
$1,850,000 and over | Existing new housing rebate only (up to $24,000) |
The Fall Statement describes the relief in two parts: an enhanced Ontario rebate of up to $80,000 on the 8% provincial portion (administered by the CRA), and the Ontario New Home Affordability Payment of up to $50,000 covering the 5% federal portion. The payment is administered by Ontario, needs no separate Ontario application, is reduced by any federal HST rebate the buyer is entitled to (including the federal first-time buyer rebate), and payments are expected to begin in early 2027.
The Ontario first-time buyer rebate is in effect
Ontario's First-Time Home Buyers' Rebate removes the full 8% provincial portion of the HST for first-time buyers of new homes valued up to $1 million, used as a primary residence, with agreements signed on or after March 20, 2025 and before 2031. The province confirms it is in effect and buyers apply through the CRA.
The $24,000 new housing rebate ends for agreements from April 1, 2027
The province is proceeding with eliminating the Ontario New Housing Rebate (up to $24,000) and the New Residential Rental Property Rebate. They will generally not be available for purchase agreements with a builder entered into on or after April 1, 2027. First-time buyers keep their separate rebate; repeat buyers and investors are the ones affected. We cover the transition rules in detail in The $24,000 Ontario HST Rebate Ends March 31, 2027.
Development charges and other items
Development Charge Reduction Program: Ontario and Ottawa have announced up to $3.3 billion for the first five municipalities that cut development charges by 30% or more — Toronto, Vaughan, Hamilton, Mississauga and Bradford West Gwillimbury.
Land transfer tax: no rate changes. The penalty for false statements in first-time buyer refund applications rises from $4,000 to $10,000.
Property assessment: the province-wide reassessment remains deferred.
OREA welcomed the HST relief and development charge measures, and has asked the province to extend the March 31, 2027 deadline. That is OREA's request; the government has not committed to it.
What This Means for You
First-time buyers of a new home
Your federal and Ontario first-time buyer rebates continue to 2031. Nothing in either document changes them.
Repeat and move-up buyers of a new home
The calendar now matters more than ever. Sign with a builder by March 31, 2027 and you can access up to $130,000 in HST relief, with the $24,000 rebate still in the background. Sign on or after April 1, 2027 and, as the rules stand, both are gone.
Investors
The New Residential Rental Property Rebate also ends for agreements from April 1, 2027. Investors buying new units should review timing with their lawyer and accountant now. Small-multiplex builders should look at the February 1, 2027 mortgage insurance changes.
Resale buyers and sellers
Neither document changes the rules on resale homes: no new land transfer tax relief, no change to the stress test, and no new resale incentive.
Frequently Asked Questions
Did the federal budget extend the GST rebate to all buyers?
No. The First-Time Home Buyers' GST Rebate continues unchanged and remains limited to first-time buyers. Ontario's temporary relief for all buyers covers the federal 5% portion through a provincial payment, and only for agreements signed by March 31, 2027.
Will the March 31, 2027 deadline be extended?
Not as of the Fall Statement. OREA has asked for an extension, but the government has not announced one.
I signed with a builder in 2025. Does any of this change my deal?
The elimination of the $24,000 rebate applies to agreements entered into on or after April 1, 2027, so agreements signed before then generally keep it. Have your real estate lawyer confirm how the rules apply to your agreement.
This summary is for general informational purposes and does not constitute legal, financial, or tax advice. Federal budget measures are proposals until legislation passes. Every situation is different — always consult a licensed real estate professional, lawyer, and tax advisor before making any decisions.
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Frank Merigliano, Team Leader / Sales Representative, VIP Condos Toronto, RE/MAX PREMIER INTERNATIONAL INC., Brokerage — licensed since 1993, with RE/MAX since 1995, and a Top 50 RE/MAX team in Canada since 2015.
Sources: Budget 2026, Chapter 3: A more affordable life; Budget 2026 foreword; Ontario 2026 Fall Statement highlights; Ontario 2026 Fall Statement, Annex: Details of Tax Measures; CREA's response to Budget 2026; MPA Canada; NOW Toronto; OREA statement on the 2026 Fall Economic Statement.
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