u/OntarioMortgageGuide

One of the biggest housing changes in 2026 has flown under the radar. If you are a first-time home buyer purchasing a newly built or substantially renovated home, you may now be eligible for a federal GST/HST rebate of up to $50,000.

Here is how it works:

If the purchase price is $1,000,000 or less, eligible first-time buyers can recover 100% of the 5% federal GST, up to a maximum of $50,000. If the purchase price is between $1,000,000 and $1,500,000, the rebate is reduced on a sliding scale.
If the home price is $1,500,000 or higher, the new federal rebate is not available.

A simple example:

If you purchase a new build for $800,000, the federal GST would normally be $40,000. Under the new rules, an eligible first-time buyer may recover that full amount. If you purchase a new build for $1,000,000, the potential rebate could be as high as $50,000. This applies to newly constructed homes, substantially renovated homes, and certain owner-built homes intended to be your primary residence.

There is also an Ontario angle.

Ontario announced an enhanced rebate on the provincial 8% portion of HST for eligible new homes, with potential provincial relief of up to $80,000 on qualifying transactions. In some situations, the combined savings from federal and provincial relief could be substantial.

That said, not every purchase qualifies. Eligibility depends on factors such as whether you are considered a first-time buyer, the purchase price, the agreement date, and whether the home will be your principal residence.

The biggest takeaway is this: If you are considering a new build in Ontario, make sure you understand how these rebates apply before signing the agreement. The tax savings can materially reduce your cash required to close and improve affordability.

Have you considered buying a new build, or do you still prefer resale homes?

I just checked this morning and got Toronto knockout game row 1 category 3 tickets for the knockout game both for $1500cad together and I’m hyped. So excited to see the game.

For that reason I’m getting rid of my other ones for the retail price I bought to share the love/I would want the money for them. I have Vancouver 2 tickets category 1, for Switzerland vs Canada. I would sell for exactly face value (1960 cad for both).

But honestly keep checking, this was the one game I thought I wouldn’t be able to get and I’m actually so hyped to go. Hopefully Portugal shits the bed and I get to watch them play!!!

A common assumption is that if you want to combine your mortgage and HELOC into one payment, you have to refinance. That usually means higher rates, more paperwork, and a full requalification process. So people either avoid touching it altogether or accept worse terms without really questioning it. If you go directly through your bank, they’re usually limited to their own products and structure. So if you have a mortgage and a HELOC and want to combine them into one new mortgage at renewal, the bank often treats that as a refinance. That means you’re no longer doing a simple renewal or switch. You’re now looking at refinance rates, which are typically higher, plus potentially new qualification, costs, and more friction.

This is where people get stuck. They either keep the HELOC separate at a higher rate, or they roll everything together but accept a worse overall rate. However, working with a broker can open up another option that many people don’t realize exists. In most cases, a broker can place the file with a lender that allows a “collateral switch” or transfer where the mortgage and HELOC can be merged into one new mortgage under a standard renewal or transfer structure. That can mean accessing a more competitive rate than a refinance, while simplifying the overall setup. Same client, same balances, completely different outcome depending on how the deal is structured.

Not all renewals are created equal, especially when a HELOC is involved. The mistake is assuming your only options are what your current lender shows you. If you have a mortgage and a HELOC, it’s worth understanding whether you’re being treated like a simple renewal or being pushed into a refinance. That difference alone can change your rate, your costs, and your flexibility going forward.

If you need help understanding your renewal and what category you fall into, feel free to leave a comment or send me a message!

A lot of people take a variable rate thinking they have a built-in safety net. The idea is simple: if rates go up, they will just lock into a fixed later. While that is technically true, the way it actually works is very different from how most people picture it.

Most lenders do allow you to convert a variable rate to a fixed rate at any time, but you are not shopping the market when you do it. You are converting into your current lender’s fixed rates at that moment. That means you are not comparing multiple lenders or negotiating widely, you are choosing from whatever your lender is offering that day.

Timing is another issue. Most people only consider locking in after rates have already moved up or when the market starts to feel uncertain. By that point, fixed rates have usually already adjusted higher as well. So instead of locking into something attractive, you are often locking into a higher rate than what was available earlier.

Another part that catches people off guard is the actual rate you are offered when converting. You are typically not getting a discounted, market-competitive rate like you would when setting up a new mortgage or switching lenders. In many cases, you are being offered the lender’s posted or near-posted fixed rates, which can be noticeably higher. A lot of people are surprised at how uncompetitive those conversion rates can be, and for some, it is bad enough that it completely changes their decision to lock in.

There are also structural limitations. When you convert, you are typically choosing from the fixed terms your lender offers, not necessarily what is best for your situation. You may want a shorter term or more flexibility, but your options can be limited in that moment.

Another factor is how the decision is made. Converting usually happens during periods of stress or uncertainty, when headlines are negative and rates are rising. That pressure can lead people to lock in quickly without fully comparing long-term costs or thinking through alternatives.

The key takeaway is that the option to convert is real, but it is not the same as having full flexibility. It is more like having an emergency exit than having full control over timing and pricing.

Sometimes staying variable and riding it out makes sense. Sometimes locking in is the right move. But relying on “I’ll just switch later” as the main strategy can lead to worse outcomes if you do not understand how that switch actually works.