Should Markham buyers choose a new home from a builder or a resale home in 2026?A new home from a builder offers a Tarion warranty, modern systems and, in 2026, sizable HST relief for buyers who will live in it: Ontario’s Enhanced New Housing Rebate is worth up to $80,000 on agreements signed from April 1, 2026 to March 31, 2027. Budget for upgrades, closing adjustments and possible delays. A resale home offers a known location, mature streets and immediate occupancy, often at a price you can compare with recent sales, but repairs and maintenance are yours from day one.
Markham has a steady supply of new freehold homes and townhomes in communities such as Cornell and north Markham, alongside thousands of established resale homes. The right choice depends on your timeline, budget and how much uncertainty you are comfortable with.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, helps buyers compare a builder’s offer with resale homes nearby, line by line.
Side by side
| New home from a builder | Resale home | |
|---|---|---|
| Move-in timing | Months to years; delays possible | Usually 30 to 90 days |
| Warranty | Tarion statutory warranty | None, beyond what you negotiate |
| HST | Applies, with 2026 rebates for owner-occupiers | No HST on most resale homes |
| Upgrades | Chosen from the builder’s options, often at a premium | What you see, plus your own renovations |
| Closing adjustments | Can add thousands | Usually limited to tax and utility adjustments |
| Neighbourhood | Still being built; trees and amenities come later | Established, with mature trees and known schools |
The 2026 HST rebates for new homes
- Ontario Enhanced New Housing Rebate: up to $80,000 of the provincial HST for buyers whose new home will be their or a relative’s primary residence, for agreements signed April 1, 2026 to March 31, 2027. Full to $1 million, a flat $80,000 from $1 million to $1.5 million, and phased out by $1.85 million.
- Ontario New Home Affordability Payment: up to $50,000, reduced by any federal rebate received.
- Federal First-Time Home Buyers’ GST rebate: up to $50,000 for first-time buyers, full up to $1 million and phased out by $1.5 million.
Builders often show prices that assume these rebates are assigned to them, so ask how HST is treated in the price. Investors do not qualify. See the Markham investor’s guide to pre-construction.
Tarion coverage
| Coverage | Length |
|---|---|
| Defects in work and materials, and Ontario Building Code issues | 1 year |
| Water penetration, electrical, plumbing and heating systems, and some code issues | 2 years |
| Major structural defects | 7 years |
Submit forms on time, keep records, and do a careful pre-delivery inspection with the builder.
Comparing new and resale homes?
Michael John Lau can compare a builder’s price, rebates and adjustments with recent resale sales nearby.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Upgrades and closing adjustments
- Upgrades: flooring, kitchens, ceiling heights and lot premiums can add a lot. Set a budget before the design centre appointment.
- Closing adjustments: development charge increases, utility connections, Tarion enrolment and other fees. Ontario does not set a general cap, so ask your lawyer to review the agreement and negotiate caps.
- Move-in costs: window coverings, light fixtures, landscaping, fencing and sometimes a driveway.
When resale makes more sense
- You need to move within a few months.
- You want a specific school, street or mature lot.
- You prefer to compare price with recent sales of similar homes.
- You are comfortable with some updating.
Resale buyers should plan for inspection findings and maintenance. See the Markham home inspection checklist.
The real cost comparison
To compare fairly, total each option’s full cost to move in. For a new home, start with the price including HST and any rebates you qualify for, then add upgrades, closing adjustments, land transfer tax and items such as window coverings and landscaping. For a resale home, start with the price, add land transfer tax and legal fees, then add the renovations or repairs you plan in the first few years.
Also compare timing. If you are renting while you wait for a new home, add the rent you will pay until closing. If you are selling a current home, consider whether you can match your sale to an uncertain builder closing date.
Questions to ask a builder
- What is the firm closing date, and what happens if it is delayed?
- How is HST treated in the price?
- Which closing adjustments are capped?
- What is standard, and what are typical upgrade costs?
- How many homes in the community are still to be built?
Ultimately, the decision is yours. The goal is to make sure you have all the information before you sign.
New or resale, the better choice is the one whose full cost and timeline you understand. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Is there an HST rebate for new homes in Ontario in 2026?
Yes. The Ontario Enhanced New Housing Rebate is worth up to $80,000 for owner-occupiers on agreements signed April 1, 2026 to March 31, 2027.
What does the Tarion warranty cover?
One-year coverage for workmanship and materials, two-year coverage for water penetration and major systems, and seven-year coverage for major structural defects.
Do resale homes have HST?
Most resale homes are not subject to HST. New homes are.
What are closing adjustments on a new home?
Extra costs at closing such as development charge increases, utility connections and Tarion enrolment. Ask your lawyer to review and cap them.
Can investors get the new home HST rebates?
No. The owner-occupier rebates require the home to be a primary residence.
Is a new home faster to move into?
Usually not. Resale homes typically close in 30 to 90 days, while new homes can take months or years.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Rebate details are from CRA Notice 346 (August 24, 2026), TRREB (July 22, 2026) and the CRA First-Time Home Buyers’ GST rebate page (March 30, 2026). Tarion coverage periods are from Tarion. Closing adjustment guidance reflects the Tarion addendum disclosure rules. Confirm rebate eligibility with your lawyer or accountant. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
