Ontario’s Enhanced New Housing Rebate: What Buyers Need to Know

Ontario’s temporary enhanced new housing rebate may allow eligible buyers to recover up to $80,000 of the provincial component of HST on a newly built or substantially renovated home.

However, the rebate is subject to specific rules around timing, home value, occupancy, ownership, and construction.

Who Can Qualify?

For a home purchased from a builder, the agreement of purchase and sale must generally be signed between:

April 1, 2026 and March 31, 2027.

Other key requirements generally include:

• Construction begins by December 31, 2028.

• Construction is substantially completed by December 31, 2031.

• HST becomes payable by December 31, 2032.

• The home is valued at less than $1.85 million.

• The home is acquired for use as the purchaser’s primary residence.

An agreement signed before April 1, 2026 generally does not become eligible simply because it is later amended or assigned.

How Much Is the Rebate?

Home valuePotential rebateUp to $1 millionUp to 100% of provincial HST, maximum $80,000$1 million–$1.5 millionUp to $80,000$1.5 million–$1.85 millionPartial rebate$1.85 million+No enhanced rebate

The $80,000 is a maximum, not a guaranteed refund.

For example, if a $900,000 home has $72,000 of provincial HST, the potential rebate could be $72,000, assuming all other requirements are met.

What About Investment Properties?

The enhanced personal rebate is generally intended for a primary residence.

It should not be assumed to apply to:

• Rental properties;

• Investment properties;

• Vacation properties; or

• Future retirement homes.

Different rules may apply to new homes purchased for long-term rental purposes.

Owner-Built Homes

The enhanced rebate may also apply to homes that are constructed or substantially renovated by an individual.

For these properties, eligibility generally depends on the fair market value of the completed home, rather than simply the construction costs.

Different construction deadlines apply, so owner-built projects should be reviewed separately.

Other Rebates

The enhanced rebate should also be considered alongside other programs, including:

• The ordinary Ontario new housing rebate;

• The Ontario first-time home buyers’ rebate; and

• The Ontario new home affordability payment.

These programs have different eligibility rules and interaction limits, so the amounts cannot simply be added together.

Common Mistakes

Buyers should pay particular attention to:

• Agreement date: The closing date is not the only important date.

• Assignments and amendments: Changing an older agreement generally does not make it eligible.

• Home value: The $80,000 maximum is not automatic.

• Primary residence: Investment and rental properties may not qualify.

• Construction deadlines: Starting or completing construction outside the required periods can affect eligibility.

• Ownership: The ownership structure can affect who is entitled to claim the rebate.

Bottom Line

The enhanced Ontario new housing rebate can provide up to $80,000 in provincial HST relief, but eligibility depends on much more than simply buying a new home.

Before closing, buyers should confirm the agreement date, home value, construction timeline, ownership structure, intended use, and interaction with other rebates.

This article is for general information purposes only and should not be considered tax, legal, or professional advice. We do not own the source information referenced in this article. The applicable HST rules should be reviewed for each transaction.