HST Rebates on New Homes in Ontario

Key points

• In Ontario, the HST on a new home is 13%: a 5% federal part and an 8% provincial part.

• The federal first-time home buyers' (FTHB) GST/HST rebate and Ontario's first-time home buyers' rebate apply to homes bought from a builder under agreements of purchase and sale entered into on or after March 20, 2025 and before 2031.

• The Ontario Enhanced New Housing Rebate (ENHR) is temporary: for a home bought from a builder, it applies only where the agreement of purchase and sale is entered into on or after April 1, 2026 and on or before March 31, 2027.

• These rebates apply only to newly built or substantially renovated homes.

• Whether the builder files the application or the buyer applies directly, the CRA asks for the statement of adjustments and the signed agreement of purchase and sale.

How the HST applies to a new home

In Ontario, the HST on a new home is 13%: a 5% federal part and an 8% provincial part. These rebates apply only to newly built or substantially renovated homes.

The federal first-time home buyers' rebate

The federal FTHB GST/HST rebate, together with the GST/HST new housing rebate where that rebate applies, provides a rebate of 100% of the GST or the federal part of the HST on a new home valued at not more than $1,000,000, to a maximum of $50,000; the rebate is reduced for homes valued between $1,000,000 and $1,500,000, and no FTHB rebate is available for a home valued at $1,500,000 or more. For a home bought from a builder, the agreement of purchase and sale must be entered into with the builder on or after March 20, 2025 and before 2031 (that is, by December 31, 2030); construction must begin before 2031 and be substantially completed before 2036 (that is, by December 31, 2035); and ownership must transfer to the buyer before 2036. A first-time home buyer is generally an individual who is at least 18, is a Canadian citizen or permanent resident, and has not lived, as a primary place of residence, in a home that they or their spouse or common-law partner owned or jointly owned, in or outside Canada, at any time in the calendar year or the previous four calendar years. For a home bought from a builder, the buyer must be a first-time home buyer on the date ownership of the home is transferred. The buyer must also be acquiring the home as their primary place of residence and be the first individual to occupy it after construction is substantially completed, and the rebate is not available if the buyer, or the buyer's spouse or common-law partner, has already applied for and been entitled to an FTHB rebate.

Ontario's first-time home buyers' rebate

Ontario's first-time home buyers' rebate provides a rebate of up to $80,000 of the 8% provincial part of the HST. Ontario's first-time home buyers' rebate follows the federal conditions: the agreement of purchase and sale must be entered into with the builder on or after March 20, 2025 and before 2031, construction must begin before 2031 and be substantially completed before 2036, and ownership must transfer to the buyer before 2036.

The temporary Ontario Enhanced New Housing Rebate

The Ontario Enhanced New Housing Rebate (ENHR), together with the Ontario new housing rebate, provides combined relief of up to $80,000 of the 8% provincial part of the HST on a new or substantially renovated home valued under $1,850,000, for use as the buyer's or their relation's primary place of residence. For a home bought from a builder, the ENHR is generally available where the agreement of purchase and sale is entered into on or after April 1, 2026 and on or before March 31, 2027. Construction must begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031. The CRA describes the ENHR in bands: the full 8% provincial part, to a maximum of $80,000, for a home valued at $1,000,000 or less; a flat $80,000 for a home valued above $1,000,000 and not more than $1,500,000; a partial rebate for a home valued above $1,500,000 and under $1,850,000; and no ENHR for a home valued at $1,850,000 or more, where only the Ontario new housing rebate of up to $24,000 is available. A buyer who is eligible for both the ENHR and Ontario's first-time home buyers' rebate may choose to claim either or both, but all rebates of the 8% provincial part together cannot exceed the lesser of $80,000 and the provincial part of the HST payable, including any amount the builder pays or credits.

The Ontario New Home Affordability Payment

The Ontario New Home Affordability Payment (ONHAP), administered by the Province of Ontario, provides up to $50,000, the equivalent of up to 100% of the 5% federal part of the HST, to individuals who are also entitled to the ENHR; it is reduced by the federal part of any GST/HST new housing rebate or FTHB rebate to which the individual is entitled. Under the Retail Sales Tax Act, the agreement of purchase and sale for this payment must be entered into no later than March 31, 2027. Both the ENHR and the ONHAP therefore apply only to agreements of purchase and sale signed by March 31, 2027.

Who files, and what is sent

When the builder credits the rebate, the builder files the application and must include a copy of the statement of adjustments and the signed agreement of purchase and sale (excluding attachments); the CRA says applications without them will not be processed until it receives them. If you apply directly, the current Form GST190 (2026 version) asks you to attach the same two documents. On Form GST190, if the buyer and the builder signed the agreement on different dates, the later date is used. Related: Buying pre-construction in Ontario: a checklist | Tarion registration timing for new freehold homes.

Working with Wolf Law

Wolf Law acts on new-home and pre-construction purchases for clients across Ontario. See Pre-construction lawyer. Email your agreement of purchase and sale to info@wolflaw.ca for a quote.

Send your Agreement of Purchase and Sale

This article is general information about the federal and Ontario HST rebates on new homes as of November 9, 2026. These programs, and the temporary Ontario measures in particular, may be amended after that date. It is not legal or tax advice and does not address any particular purchase, agreement or situation.

Sources: CRA GST/HST Notice 346, Ontario Enhanced New Housing Rebate, August 2026 (https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/notice346/ontario-enhanced-new-housing-rebate.html); CRA GST/HST Memorandum 19-3-10, First-time Home Buyers' GST/HST Rebate, October 2026 (https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/19-3-10/first-time-home-buyers-gst-hst-rebate.html); CRA First-time home buyers' GST/HST rebate (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html) and Who can apply (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate/who-can-apply.html); CRA Applying for the rebate, home purchased from a builder (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate/how-apply/home-purchased-from-builder.html); CRA Form GST190 E (26) (https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/gst190/gst190-fill-26e.pdf); Excise Tax Act, s. 254 (https://laws-lois.justice.gc.ca/eng/acts/E-15/section-254.html) and s. 263.3 (https://laws-lois.justice.gc.ca/eng/acts/E-15/section-263.3.html); New Harmonized Value-added Tax System Regulations, No. 2, SOR/2010-151, s. 41 (https://laws-lois.justice.gc.ca/eng/regulations/SOR-2010-151/section-41.html); HST Relief Implementation Act (Residential Property Rebates), 2026, S.O. 2026, c. 5 (https://www.ontario.ca/laws/statute/s26005); O. Reg. 196/26 (https://www.ontario.ca/laws/regulation/r26196).

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