Alan Zheng - Toronto Real Estate

Ontario HST new housing rebate for new home buyers

Ontario HST New Housing Rebate

Buyers of newly constructed or substantially renovated homes may qualify to recover part of the GST/HST paid on the purchase. Rebates may also be available for certain owner-built homes, modular or mobile homes, and homes that have undergone a major renovation.

HST generally applies to the purchase of a new home from a builder. A typical resale residential property is generally exempt from HST, although certain properties or parts of a transaction may be treated differently.

Regular GST/HST New Housing Rebates

Under the regular federal program, an eligible purchaser may receive a rebate equal to 36% of the federal portion of the HST, up to a maximum of $6,300. The rebate is gradually reduced for qualifying homes priced between $350,000 and $450,000. The regular federal rebate is generally unavailable when the applicable purchase price or value is $450,000 or more.

Ontario's regular new housing rebate may refund 75% of the provincial portion of the HST, up to a maximum of $24,000. Unlike the regular federal rebate, the maximum Ontario rebate may remain available for qualifying homes priced above $450,000.

Enhanced Rebates Available in 2026

Eligible first-time home buyers may qualify for a separate federal rebate of up to $50,000. It may refund the full federal portion of the HST on a qualifying new home valued at up to $1 million, with the rebate gradually reduced for homes valued between $1 million and $1.5 million.

Ontario has also introduced a temporary Enhanced New Housing Rebate. For qualifying agreements entered into with a builder from April 1, 2026, through March 31, 2027, eligible purchasers may receive up to $80,000 in provincial HST relief. Additional Ontario relief may also be available for certain qualifying transactions.

How the Rebate Is Usually Applied

Many builder agreements state that the purchase price is already net of the anticipated HST rebates. In these transactions, the purchaser assigns the rebates to the builder, and the builder credits the anticipated rebate against the price payable by the purchaser.

This does not normally mean that the purchaser may deduct the rebate from the advertised price a second time. The purchaser generally pays the stated net purchase price, deposits are credited toward that price, and normal closing adjustments are added.

If the purchaser does not meet the eligibility or occupancy requirements, the builder may require the purchaser to pay the rebate amount or the full applicable HST on closing. The purchaser may then have to apply directly to the Canada Revenue Agency if otherwise eligible.

Eligibility depends on several factors, including the agreement date, purchase price, first-time home buyer status, intended use of the property, occupancy, and whether the home will be the purchaser's or a qualifying relation's primary place of residence.

Important: HST rebate rules are detailed and may change. Buyers should have their purchase agreement and rebate eligibility reviewed by a real estate lawyer or qualified tax professional before relying on a rebate amount.



WhatsApp Chat