Last reviewed: October 22, 2026. These rules are temporary and have changed several times, so confirm the current details before you act.
You claim the HST rebate on a new home in one of two ways. Most buyers assign the rebate to the builder, and the builder takes the amount off the price on closing. If the builder doesn't do that, you apply to the Canada Revenue Agency (CRA) yourself after closing and the CRA pays you back.
Here's how that looks with a real number. Say you buy a new condo for $800,000 and sign the rebate forms with your builder. On closing day, your lawyer's statement of adjustments shows the rebate as a credit, and the amount you owe drops. If the builder doesn't credit it, you pay the full amount on closing and wait for the CRA to send the money afterward. Either way you can end up with the rebate, but your closing-day cash is very different.
This guide walks through both routes. If you aren't sure whether you qualify, read our article on who is eligible for the Ontario new housing rebate first.
Route 1: The builder credits the rebate (most common)
For a home you buy from a builder, the builder can pay or credit the Ontario enhanced rebate and the 5% top-up to an eligible buyer. This route keeps more cash in your pocket on closing day.
Step 1: Check your agreement
Your agreement of purchase and sale should say whether the builder will handle the rebate for you. This matters a lot. If you sign after April 1, 2026, and the agreement includes a clause saying the builder will handle the enhanced rebate, you get the benefit on closing through a lower balance on your final statement of adjustments. If the clause is missing, you may not get the credit. Have your lawyer review this before you sign.
Step 2: Sign the rebate forms with the builder
You fill out the application forms with the builder, and both of you sign them. The forms are Form GST190, the GST/HST New Housing Rebate Application for Houses Purchased from a Builder, and Form RC7190-ON, the Ontario rebate schedule. The builder then submits them to the CRA.
Step 3: Skip the separate Ontario application
You don't need a separate application for the 5% Ontario top-up. The updated GST190 covers both portions. The form also includes your consent to share contact, banking, and rebate information with the province.
Step 4: Check the credit on closing
Your lawyer prepares the statement of adjustments, and the rebate should appear as a credit that reduces what you owe. Look at it before you sign, and ask your lawyer to explain any number you don't understand.
Route 2: You apply to the CRA yourself
Sometimes the builder doesn't pay or credit the rebate. That can happen if your agreement doesn't cover it, or if the builder only credits part of what you're entitled to. In that case you submit the application yourself, using Form GST190 and Form RC7190-ON. You pay the full HST on closing, then wait for the CRA to refund the rebate.
A few details to know:
Co-ops are different. A co-op can't pay or credit the rebate to you. You apply directly.
Don't double up. If the builder gives you the rebate, you generally can't file another application for the same home, unless the builder didn't credit everything you're entitled to.
Watch the deadline. One source says you generally have two years to file, counted from when the home was substantially completed and first occupied. That source gives the two-year limit for applying directly to the CRA. Confirm the exact deadline for your situation with the CRA, and don't wait.
If you build your own home
Owner-builders use different forms. You claim using Form GST191 for owner-built houses and Form RC7191-ON, the Ontario schedule. You also need a construction summary worksheet and your invoices and receipts. Most buyers of condos and townhomes won't use these forms.
If you buy to rent the home out
A different rebate applies, and the builder can't credit it. Investors pay the full HST on closing and then apply to the CRA to get the funds back. Plan your closing cash accordingly. The CRA has also said it expects to publish a notice on the enhanced rental rebate by October 2026, so check for updates.
What to keep
Hold on to these until you receive your rebate:
Your signed agreement of purchase and sale
Copies of Form GST190 and Form RC7190-ON
Your final statement of adjustments
Proof of when you took possession of the home
Any letters or notices from the CRA
Common mistakes
Signing an agreement without a rebate clause. This is the most expensive mistake, because it can leave you paying the full HST on closing.
Not budgeting for the case where the builder doesn't credit the rebate. Plan for both outcomes until your lawyer confirms the credit.
Applying too late. The CRA sets deadlines, and missing them can cost you the rebate.
Filing the wrong form. Owner-built homes, builder purchases, and rentals each use different forms.
Not checking the final numbers. Always read the credit on your statement of adjustments.
The bottom line
Claiming the rebate is simple when your agreement is set up correctly: sign the forms with the builder, and the credit shows up on closing. It gets harder when the agreement doesn't cover the rebate, because then you pay up front and chase a refund. Spend your time on the agreement before you sign, not after.
Buying a new home or condo? Contact us before you sign your builder's agreement, and we'll check the rebate wording and explain how it affects your closing costs.