Ontario HST Rebate: Save $130K on New Homes

Buying a new home in Ontario may now come with significant tax savings. Under Ontario’s temporary enhanced new housing rebate, eligible buyers could receive up to $130,000 in combined HST relief on a qualifying new home.

The program can effectively refund the full 13% HST paid on an eligible home valued at up to $1 million. Relief is also available on certain homes priced above $1 million, although the calculation and maximum rebate change as the price increases.

Here is what Ontario homebuyers need to know.

What Is the Ontario Enhanced New Housing Rebate?

Ontario’s HST consists of:

A 5% federal portion
An 8% provincial portion

The temporary Ontario Enhanced New Housing Rebate, commonly called the Ontario ENHR, can refund up to $80,000 of the provincial portion of the HST paid on a qualifying new or substantially renovated home.

Ontario is also offering an additional payment equal to as much as the 5% federal portion, up to a maximum of $50,000. This is known as the Ontario New Home Affordability Payment, or ONHAP.

Together, the two forms of relief can provide eligible buyers with savings of up to:

$80,000 + $50,000 = $130,000

This does not mean every buyer will receive $130,000. The actual amount depends on the home’s price, the HST paid or payable, the buyer’s eligibility and any other housing rebates being claimed.

How Much Could You Receive?

The Ontario portion of the rebate is based on the value of the home before HST:

New-home price before HSTPotential Ontario ENHRUp to $1 millionUp to 100% of the 8% provincial HST, to a maximum of $80,000More than $1 million up to $1.5 millionFlat provincial rebate of up to $80,000More than $1.5 million but less than $1.85 millionPartial provincial rebate that decreases as the price approaches $1.85 million$1.85 million or moreOntario ENHR is not available; the existing Ontario new housing rebate may still provide up to $24,000 if all conditions are met

Eligible buyers who receive the Ontario ENHR may also qualify for the ONHAP top-up, which provides additional relief equivalent to the 5% federal part of the HST, up to $50,000.

Example: A New Home Priced at $1 Million

If an eligible buyer purchases a qualifying new home for $1 million before HST:

8% provincial portion: $80,000
5% federal-equivalent Ontario top-up: up to $50,000
Potential combined relief: up to $130,000

The final benefit cannot exceed the applicable tax paid or payable, and the interaction with other rebates must also be considered.

Who May Qualify?

The Ontario ENHR is broader than the federal first-time home buyers’ GST/HST rebate. You do not necessarily need to be a first-time buyer.

An individual may qualify when purchasing:

A newly built home from a builder
A new condominium unit
A substantially renovated home
A qualifying modular, mobile or floating home
A qualifying share in a housing co-operative
A home built or substantially renovated by the owner

For a typical purchase from a builder, the property must generally be intended as the primary residence of the buyer or a qualifying relation. The buyer or qualifying relation must also be the first individual to occupy the home after construction or substantial renovation is completed.

The enhanced rebate is generally not available for a property purchased strictly as a rental investment under the owner-occupied new housing rebate rules. Different rebate programs and conditions may apply to qualifying long-term rental properties.

The Purchase Agreement Dates Matter

For a new home purchased from a builder, the Agreement of Purchase and Sale generally must be signed:

On or after April 1, 2026, and on or before March 31, 2027.

For a house and land purchased from the same builder:

Construction or substantial renovation must begin by December 31, 2028
The home must be substantially completed by December 31, 2031
The purchase price before HST must be less than $1.85 million

Different completion, possession and value rules may apply to homes on leased land, co-operative housing and owner-built homes.

The timing rules are strict. Simply changing an older purchase agreement to make it appear that it was entered into after April 1, 2026, does not automatically create eligibility.

What About Assignment Sales?

Assignment transactions require extra attention.

To qualify for the Ontario ENHR on an assignment sale, both:

The original Agreement of Purchase and Sale with the builder; and
The assignment agreement

must generally be entered into between April 1, 2026, and March 31, 2027.

Anyone considering an assignment should have the agreement and rebate requirements reviewed before relying on the expected savings.

Do First-Time Home Buyers Receive Anything Extra?

Potentially, yes.

The federal First-Time Home Buyers’ GST/HST Rebate can provide eligible first-time buyers with:

Up to $50,000 on a new home valued at $1 million or less
A gradually reduced rebate on a new home valued between $1 million and $1.5 million
No federal first-time buyer rebate when the home is valued at $1.5 million or more

To qualify as a first-time buyer under the federal program, an individual must meet several conditions, including age and Canadian residency requirements. Generally, the buyer must not have lived in a home owned by the buyer or the buyer’s spouse or common-law partner during the current calendar year or the previous four calendar years.

The home must also be newly built or substantially renovated and intended as the buyer’s primary residence.

When a buyer qualifies for both the federal first-time buyer rebate and Ontario’s enhanced rebate, the federal rebate should generally be claimed first. The programs coordinate with one another, so a buyer cannot receive more than the eligible HST amount paid or payable.

Is the Rebate Applied at Closing?

In many builder transactions, the builder may credit the eligible rebate against the amount payable on closing. This can reduce the amount the buyer needs to pay at that time.

The builder and buyer will generally complete the required CRA forms, including:

Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder
Form RC7190-ON, the Ontario rebate schedule

The same application process includes consent for the information required to process the additional Ontario payment. A separate application for the ONHAP top-up is generally not required.

If the builder does not credit the rebate, an eligible buyer may need to apply directly after closing. Buyers should confirm the builder’s process well before the final closing date.

Important Questions to Ask Before Buying

Before signing for a new home, ask:

Is the advertised price inclusive or exclusive of HST?
Does the builder’s price already assume that the rebate will be assigned or credited to the builder?
Does the Agreement of Purchase and Sale fall within the required eligibility period?
Will the home be used as the buyer’s or a qualifying relation’s primary residence?
Will the builder credit the rebate at closing?
Which forms and supporting documents will be required?
How will the rebate interact with any federal first-time home buyer rebate?
What happens if the occupancy or closing date changes?

These details can materially affect the amount required on closing.

Why This Matters for Ontario New-Home Buyers

HST can represent one of the largest costs built into a new-home purchase. A potential rebate of up to $130,000 may improve affordability, reduce the buyer’s closing burden and make certain new-home opportunities more competitive with resale properties.

However, eligibility should never be assumed from the purchase price alone. The agreement date, construction timeline, intended use, occupancy and rebate terms in the builder’s contract all matter.

Find the Right New Home with NewHomeCentre.com

NewHomeCentre.com helps buyers explore pre-construction projects, new-home communities, floor plans, quick-closing opportunities and resale listings across Ontario—all in one place.

If you are considering a new home, we can help you compare available projects, understand builder incentives and identify important questions to discuss with your lawyer and tax professional before you buy.

Explore new homes at NewHomeCentre.com.

This article is provided for general informational purposes only and does not constitute legal, tax, accounting or financial advice. Rebate eligibility depends on the purchaser, property, agreement, occupancy and other circumstances. Program rules may change. Buyers should confirm their eligibility with the Canada Revenue Agency, the builder, a qualified real estate lawyer and a tax professional before relying on any rebate amount.

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