New Home HST Rebate Programs for Ontario Buyers

Ontario buyers who purchase a newly built or substantially renovated home from a builder may qualify for significant HST rebate relief. Depending on the purchase date, home value, buyer status, and occupancy requirements, eligible purchasers may recover part or all of the HST paid on a new home purchase.

First-Time Home Buyer HST Rebate on New Builds

First-time home buyers purchasing a newly built or substantially renovated home from a builder may qualify for a combined federal and Ontario HST rebate. The federal portion can provide up to $50,000 in relief on the 5% federal portion of the HST, while Ontario has announced relief on the 8% provincial portion, which can provide up to $80,000 in provincial HST relief, creating potential combined relief of up to $130,000 for eligible Ontario first-time buyers.

For the federal first-time home buyer rebate, the purchase agreement with the builder must generally be entered into on or after March 20, 2025 and before 2031, construction or substantial renovation must begin before 2031, and the home must be substantially completed and transferred before 2036.

To qualify, the purchaser must generally be an individual, must meet the first-time home buyer requirements, must buy the home for use as their primary place of residence, and must be the first person to occupy the home after construction or substantial renovation is completed. CRA also requires that neither the buyer nor their spouse or common-law partner has previously received the First-Time Home Buyers’ GST/HST Rebate.

Enhanced HST Rebate for All Eligible New Home Buyers — Not Limited to First-Time Buyers

Effective for eligible agreements of purchase and sale entered into on or after April 1, 2026 and on or before March 31, 2027, Ontario has announced an enhanced new housing rebate that is not limited to first-time home buyers. This means eligible purchasers of new builder-built homes in Ontario may qualify for up to $130,000 in total HST relief, even if they previously owned a home.

This temporary enhanced rebate is intended to provide up to 100% relief of the 13% HST on eligible new homes valued up to $1 million, made up of up to $80,000 for the Ontario 8% portion and additional relief equivalent to up to $50,000 for the 5% federal portion. For eligible homes valued above $1 million and up to $1.5 million, the maximum relief may remain up to $130,000. For homes valued between $1.5 million and $1.85 million, the rebate is gradually reduced, and homes valued at $1.85 million or more may still qualify for the existing Ontario rebate of up to $24,000, where all conditions are met.

For new homes purchased from a builder, the enhanced Ontario rebate generally applies where the agreement of purchase and sale is signed between April 1, 2026 and March 31, 2027, construction or substantial renovation begins on or before December 31, 2028, and the home is substantially completed on or before December 31, 2031.

To qualify, the home must generally be a new or substantially renovated home located in Ontario, purchased from a builder by an individual, and used as the purchaser’s primary place of residence or the primary place of residence of a qualifying relation. Eligible property types may include detached homes, semi-detached homes, townhomes, rowhouses, residential condominium units, duplexes, mobile homes, modular homes, and certain co-operative housing units.

Let Us Help You Claim the Maximum New Home HST Rebate

The HST rebate rules for new homes can be complex, especially when purchase dates, closing dates, builder credits, occupancy requirements, assignment agreements, and first-time buyer status are involved. Our team helps Ontario home buyers review their eligibility, calculate the available rebate, and prepare the required rebate forms so they can claim the maximum HST rebate available.