Last reviewed: October 19, 2026. These rules are temporary and have changed several times, so confirm the current details before you sign.
The Ontario enhanced new housing rebate gives back the HST on a qualifying new home, up to $130,000. You get it by buying a new home from a builder, living in it, and signing your agreement during a set window. Any eligible buyer can claim it, whether or not they have owned a home before.
Here's how that looks in practice. Say you buy a new condo from a builder for $900,000, and 13% HST applies. That's about $117,000 in HST. If you qualify, the rebate can cover most or all of that amount, and it usually comes off what you pay on closing. This guide explains who qualifies and where people trip up.
What the rebate actually is
New homes carry HST. In Ontario, the 13% splits into 5% federal GST and 8% provincial tax. The government is returning that tax to qualifying buyers through a temporary boost to the existing New Housing Rebate.
The enhanced rebate includes the 8% provincial portion of the HST plus a 5% Ontario New Home Affordability Payment top-up. Reporting on the program describes a maximum rebate of $130,000, with the full amount going to buyers of homes up to $1 million, and a reduced amount on more expensive homes. The reduction starts above $1.5 million and phases down gradually up to $1.85 million. Check the current price thresholds with the CRA before you rely on them.
Who qualifies
1. You sign within the window
The builder can credit the enhanced rebate for agreements entered into between April 1, 2026, and March 31, 2027. If you signed earlier or sign later, you may still qualify for the regular New Housing Rebate, but not the enhanced one.
2. You buy a new home from a builder
This rebate covers newly built homes, including condo units and townhomes, bought from a builder. It doesn't apply to resale homes.
3. You will live in it
The CRA uses the same eligibility rules that apply to the existing Ontario New Housing Rebate. In general, that means you or a close family member must use the home as a primary residence. If you're buying to rent it out, different rules apply (see below).
4. You don't have to be a first-time buyer
This is the biggest change. The enhanced rebate isn't limited to first-time buyers.
What if you're a first-time buyer?
First-time buyers may qualify for extra relief. The federal first-time home buyers' GST rebate removes the 5% GST on a new home up to $1 million, for a maximum rebate of $50,000. If you qualify for both the Ontario first-time buyer rebate and the enhanced rebate, you can claim either or both, but your total Ontario rebates can't exceed the maximum under the enhanced rebate. The rules for combining these are detailed, so ask your lawyer or accountant how they apply to your purchase.
Buying a new home as an investment
If you're buying to rent the home out, the enhanced rebate for new residential rental property applies instead. A builder can't credit this one at closing. Investors pay the full HST on closing and then apply to the CRA to get the money back. That affects how much cash you need on closing day, so plan for it.
Watch out for assignments
If you're buying a pre-construction unit from someone who is reselling their contract (an assignment), the dates matter more. One legal guide reports that both the original builder agreement and the assignment agreement must fall within the April 2026 to March 2027 window. Confirm this with your lawyer before you commit.
How you actually get the money
Most buyers claim the rebate through the builder. You sign the rebate forms with the builder, who credits the rebate against your price on closing. The forms are Form GST190 and the Ontario schedule, Form RC7190-ON. No separate Ontario application is required.
Your agreement of purchase and sale controls whether the builder handles this for you. If your agreement doesn't say the builder will handle the rebate, you may have to pay the full amount on closing and apply to the CRA afterward. That's one more reason to have a lawyer read a builder's agreement before you sign it.
Common mistakes
Assuming a resale home qualifies
Missing the signing window by a few weeks
Forgetting to check whether the agreement says the builder will credit the rebate
Planning your closing cash as if the rebate always comes off the price
Overlooking how a rebate gets treated on a rental or investment purchase
The bottom line
The enhanced HST rebate can save new-home buyers a large amount of money, but only if the purchase fits the rules and the paperwork says the right things. Dates, the type of home, and how you plan to use it all matter.
Buying a new home or condo from a builder? Contact us before you sign, and we'll review the agreement and explain how the rebate affects your closing costs.