Ontario new housing rebate and GST/HST rebate Ontario programs may help buyers save up to $130,000 on new construction rebate Ontario homes. The amount depends on the program and your eligibility. This Ontario housing rebate 2026 guide explains the three Ontario new home GST/HST rebate programs. You’ll learn who qualifies, how much you can claim, key deadlines, and how to apply.
If you’re buying a new or pre-construction property in Brampton, Mississauga, or elsewhere in the GTA, you’ve likely heard about Ontario’s new housing rebate programs and GST/HST rebates. GTA new home sales have been running well below their 10-year average. Several rebate programs have also launched in the past year. That has created confusion about eligibility and potential savings.
The rules first changed in 2025 when the federal government introduced the First-Time Home Buyers’ GST Rebate. Ontario followed in 2026 with its temporary Enhanced New Housing Rebate.
This guide breaks down all three Ontario new home GST/HST rebate programs: who can claim them, how much they’re worth, the key deadlines, and the steps to apply.
Why Ontario Introduced These New Housing Rebates
Ontario has three rebate programs, including the pre-construction HST rebate options for eligible buyers. Ontario introduced these rebates to improve housing affordability. Rising construction costs increased home prices. HST also made new homes harder to afford, most of all across the GTA.
The federal government introduced the First-Time Home Buyers’ GST/HST Rebate through Bill C-4. The bill received Royal Assent on March 12, 2026. It provides a rebate of up to 100% of the 5% federal GST (up to $50,000).
Ontario followed in its 2026 Budget. It proposed a temporary Enhanced New Housing Rebate. The rebate applies to agreements signed between April 1, 2026, and March 31, 2027. It removes the 8% provincial HST on qualifying homes up to $1 million. The federal government funds Ontario’s matching top-up, which covers the equivalent value of the 5% federal HST portion.
Why this matters: HST adds 13% to most new home prices in Ontario. These rebates can reduce part or all of that cost. Actual savings vary by buyer, purchase price, and purchase date.
Official sources: Government of Canada (Bill C-4 and the First-Time Home Buyers’ GST Rebate), Government of Ontario – 2026 Budget.
Which Ontario GST/HST Rebate Applies to Your Situation?
Ontario offers three GST/HST rebate programs for buyers of new homes under the broader Ontario new housing rebate system.
Federal First-Time Home Buyers’ GST/HST Rebate
The Federal First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) is a standalone program introduced under Bill C-4. It is separate from Ontario’s temporary rebate and follows its own eligibility rules and timelines.
Who can apply: First-time home buyers must not have lived in a home they owned during the current year or previous four calendar years. This rule also applies to a spouse or common-law partner. The home must be newly built or substantially renovated. It must be your primary residence and meet CRA requirements.
Maximum rebate: Buyers can receive up to $50,000. This covers the federal 5% GST on homes priced at $1 million or less. The rebate phases out between $1 million and $1.5 million. No rebate is available above $1.5 million.
Who can apply for the FTHB rebate
The rebate applies to agreements signed between March 20, 2025, and before 2031. Construction must be substantially completed before 2036. Each individual can claim it only once. It is unavailable if you or your spouse or common-law partner has previously claimed the First-Time Home Buyers’ GST/HST rebate.
GST/HST New Housing Rebate (Existing Program)
The GST/HST New Housing Rebate existed before the 2026 rebate programs. Unlike the First-Time Home Buyers’ GST Rebate, it is available to both first-time and repeat buyers who meet the program requirements.
Who can apply: Buyers purchasing a new or substantially renovated home from a builder for use as their own or a relation’s primary residence.
Maximum rebate: Eligible buyers can receive a federal GST/HST New Housing Rebate equal to 36% of the federal GST (or the federal portion of the HST) paid, up to a maximum of $6,300.
How it works: Builders credit the rebate at closing in most cases. This reduces your upfront costs. If that doesn’t happen, buyers can apply after closing.
Ontario Enhanced New Housing Rebate (Ontario ENHR)
The Ontario Enhanced New Housing Rebate (ENHR) is a temporary rebate introduced in 2026. It provides the largest HST savings available on qualifying new homes right now.
What it does: The rebate applies to agreements signed between April 1, 2026, and March 31, 2027. It provides a 100% rebate of the 8% provincial portion of the HST on qualifying homes up to $1 million. That saves up to $80,000. A matching federal-funded Ontario top-up covers the equivalent 5% portion. Together, the maximum combined rebate is up to $130,000.
Who can apply: Unlike the federal First-Time Home Buyers’ GST Rebate, the Ontario ENHR is open to first-time buyers, existing homeowners, and long-term rental investors who meet the requirements.
Status: Federal regulations took effect on June 12, 2026. Some builders may not credit the rebate at closing. That depends on your closing date and available CRA forms. Confirm the process with your lawyer or builder.
Ontario GST/HST Rebate Amounts (2026)
Your total rebate is shaped by your home’s purchase price and which programs you qualify for. The table below summarizes the maximum combined GST/HST rebate available under Ontario’s enhanced rebate program.
| Home Price | Federal-Related Rebate* | Ontario Rebate | Maximum Combined Rebate |
| Up to $1,000,000 | Up to $50,000 | Up to $80,000 | Up to $130,000** |
| $1,000,001–$1,500,000 | Phases out ($50,000 to $0) | Flat $80,000 | $130,000 |
| $1,500,001–$1,850,000 | Phases out | Phases out | Declines from $130,000 to $24,000 |
| Above $1,850,000 | Existing rebate rules (if eligible) | Existing rebate rules (if eligible) | Up to $24,000 |
*Between $1 million and $1.5 million, the First-Time Home Buyers’ GST Rebate phases down, while Ontario’s federal-funded top-up keeps combined federal relief at up to $50,000.
**For homes under $1 million, the rebate equals the HST paid, up to the program limits. Above $1.5 million, the rebate gradually phases out.
Who Qualifies For the Ontario Enhanced New Housing Rebate?
The Ontario Enhanced New Housing Rebate casts a wider net than many buyers expect. You don’t need first-time buyer status. Unlike the federal rebate, existing homeowners can qualify too.
Who can apply?
You may qualify if you are:
- A first-time buyer purchasing a new primary residence
- An existing homeowner buying a new primary residence
- An investor or landlord purchasing a qualifying home for long-term residential rental (minimum one-year lease)
Eligible properties
The rebate applies to qualifying new or substantially renovated homes purchased from a builder, including:
- Detached and semi-detached houses
- Townhouses
- Condominiums
- Eligible pre-construction homes, provided the agreement of purchase and sale is signed during the qualifying period
Purchase requirements
To meet program rules, all conditions must be met:
- The agreement of purchase and sale is entered into between the individual and the builder from April 1, 2026 to March 31, 2027
- Construction begins on or before December 31, 2028
- The home is substantially completed on or before December 31, 2031
- The property is located in Ontario
Who Does NOT Qualify?
Not everyone qualifies for the Ontario Enhanced New Housing Rebate. The following purchases do not qualify for the rebate:
- Resale homes: The rebate applies only to newly built or substantially renovated homes, not resale properties.
- Agreements signed outside the eligibility period: Purchases signed before April 1, 2026, or after March 31, 2027, do not qualify for the Ontario Enhanced New Housing Rebate. Other federal or existing GST/HST rebates may still apply if you qualify.
- Non-qualifying purchases: Homes bought for short-term rentals aren’t covered, nor are other non-eligible uses. Rental properties must, as a rule, be intended for long-term residential use.
Rebate Amounts by Buyer Scenario
The GST/HST New Housing Rebates that apply to your Ontario home purchase depend on your home’s purchase price, the HST paid, and the rebate programs available for your situation. The table below compares estimated rebate amounts for common Ontario homebuyer scenarios.
| Scenario | Listed Builder Price | Calculated Pre-Tax Value | 5% Relief – Federal FTHB Rebate or Ontario Top-Up (B) | Ontario Enhanced 8% Rebate (C) | Existing $24K Already Included (D) | Additional Rebate (E = B + C − D) | Total Rebate Entitlement (B + C) |
| First-time buyer purchasing a new primary residence | $750,000 | $684,955.75 | $34,247.79 | $54,796.46 | $24,000.00 | $65,044.25 | $89,044.25 |
| Move-up buyer purchasing a new primary residence | $1,200,000 | $1,083,185.84 | $50,000.00 | $80,000.00 | $24,000.00 | $106,000.00 | $130,000.00 |
| Investor purchasing a new home for eligible long-term rental | $600,000 | $552,212.39 | $27,610.62 | $44,176.99 | $24,000.00 | $47,787.61 | $71,787.61 |
Note: The additional rebate reflects the enhanced Ontario rebate after accounting for the existing $24,000 rebate already available under Ontario’s current new housing rebate. Actual rebate amounts depend on your purchase details and eligibility.
* Actual rebate amounts vary based on the home’s purchase price, HST paid, property type, and eligibility requirements under each GST/HST rebate program.
GST/HST calculator (and rates) – Canada.ca
Scenario 1: First-Time Buyer
A first-time buyer purchasing a $750,000 new primary residence could receive an estimated total rebate entitlement of $89,044.25, including the federal rebate and Ontario’s enhanced rebate, subject to eligibility.
Scenario 2: Move-Up Buyer
A move-up buyer purchasing a $1.2 million new primary residence could receive an estimated total rebate entitlement of $130,000, representing the maximum available under the enhanced rebate programs.
Scenario 3: Investment Property
An investor purchasing a $600,000 new home for an eligible long-term rental could receive an estimated total rebate entitlement of $71,787.61, subject to meeting the New Residential Rental Property Rebate requirements. Eligible investors, as a rule, apply to the CRA after closing.
How to Claim Your Ontario GST/HST Rebate
1. Confirm your builder can credit the rebate.
2. Complete the required CRA forms.
3. Your lawyer coordinates the rebate process.
4. If the builder doesn’t credit the rebate, apply directly to the CRA after closing.
Step 1: Confirm your builder is registered and willing to credit the rebate against your closing costs. For the Ontario Enhanced New Housing Rebate (ENHR), eligibility depends on your GST/HST payment date and whether the required CRA forms are available.
Step 2: Complete the required CRA forms. In most cases, you’ll need Form GST190. You may also need Form RC7190-ON for the Ontario portion.
Step 3: Let your lawyer coordinate the details. Your lawyer works with the builder. Where required, they file the paperwork with the CRA. This helps ensure the correct rebate is applied.
Step 4: Watch for delayed processing if you signed early. Agreements signed between March 20 and May 26, 2025, may take longer to process. The CRA attributes this delay to a legislative amendment. Processing may begin in spring 2026, subject to CRA updates.
Source: home-purchased-from-builder
Step 5: Closing day. If the builder credits the rebate, it appears on your statement of adjustments. It also reduces your closing costs. If the builder does not credit the rebate, the CRA issues it after processing your application.
Prefer a quick overview?
Watch our GST rebate guide before you apply.
What is the CRA GST/HST Calculator?
The CRA GST/HST Calculator Ontario is used to estimate taxes and plan your purchase. It helps buyers estimate HST on a new home before making an offer. The calculator estimates tax only. Your final rebate is determined separately, based on eligibility, home price, and your purchase agreement.
Use the calculator to:
- Estimate the HST payable on your purchase.
- Estimate your potential rebate by comparing the HST with the rebate limits explained in this guide.
- Budget for your down payment, closing costs, and total purchase price using our mortgage payment calculator.
- Compare costs if you’re buying near a rebate price threshold.
Keep in mind that the CRA calculator estimates tax only. Confirm your rebate with your lawyer, builder, or tax professional before closing.
Common Ontario GST/HST Rebate Mistakes
Mistake 1: Assuming resale homes qualify. Resale homes don’t qualify. These rebates apply only to new or substantially renovated homes that have never been occupied before.
Mistake 2: Missing the agreement deadline. The Ontario Enhanced New Housing Rebate applies only to eligible agreements. These must be signed between April 1, 2026, and March 31, 2027. Other purchases may qualify only for the federal First-Time Home Buyers’ GST Rebate or the existing GST/HST New Housing Rebate.
Mistake 3: Applying for the wrong rebate. These three programs each carry their own eligibility rules, price limits, and timelines. It pays to confirm that you’re applying for the right one.
Mistake 4: Not understanding phased rebate reductions. A home under $1 million doesn’t guarantee the maximum rebate. The actual amount reflects the HST paid, along with program limits and purchase price.
Mistake 5: Not asking your builder about rebate credits. Ask whether the builder can credit the rebate at closing. For the Ontario Enhanced New Housing Rebate, this depends on specific CRA rules and form availability.
Buying a new construction or pre-construction home in Ontario?
We’ll help you understand which rebates apply to your specific purchase and walk through your closing costs before you make an offer.
Sources
- Government of Canada: Legislation to make life more affordable receives royal assent
- Government of Ontario: HST
- Government of Canada: Who can apply for the FTHB rebate
- Government of Canada: First-Time Home Buyers' GST/HST rebate
- Government of Ontario: Ontario introducing legislation to support implementation of hst relief on new homes
- Government of Canada: GST/HST calculator
- Canada Revenue Agency
- Government of Canada: GST/HST rebate on a home bought from a builder
Disclaimer: This article is for general informational purposes only and is not tax, legal, or financial advice. GST/HST rebate eligibility, amounts, and program details may change. This is most true for the Ontario Enhanced New Housing Rebate. Rebate amounts are not guaranteed. They depend on your purchase price, buyer status, agreement date, and other eligibility requirements. Always confirm current rules with the Canada Revenue Agency, a qualified accountant, and your real estate lawyer before making decisions.
