ONTARIO ENHANCED NEW HOUSING REBATE

Ontario New Housing Rebate: Up to $130,000 on a New Home.. And you don't have to be a first-time buyer.

For agreements of purchase and sale signed between April 1, 2026 and March 31, 2027, Ontario and the federal government are rebating the entire 13% HST on qualifying new homes valued up to $1 million.

Move-up buyers. Downsizers. Second-time buyers. Everyone who qualifies.

2,500 claims filed · $65 million recovered · 15+ years in Excise Tax · Never a percentage of your rebate.

The Ontario New Housing Rebate went up more than fivefold

Ontario’s HST is 13% — an 8% provincial portion and a 5% federal portion.

Until this year, the provincial new housing rebate returned 75% of the provincial portion on the first $400,000 of value. Maximum: $24,000. That cap was set when $450,000 bought a house in this province, and it hadn’t moved since.

The enhanced rebate rebates the full 8% — up to $80,000. Ontario then adds a further amount equivalent to the 5% federal portion, worth up to $50,000 more.

Combined: up to $130,000.

Styled Table

Rebate Comparison

	Old Rebate	Enhanced Rebate
Maximum	$24,000	$130,000
Who	Limited by price caps	All qualifying buyers
Window	Ongoing	APS signed by Mar 31, 2027

On a $700,000 new home, the full 13% HST comes to $91,000. Under this program, that goes to zero.

What you get, by price

The figure depends on the purchase price before HST.

Home value (pre-HST)	Provincial rebate	Combined relief
Up to $1,000,000	Full 8% — up to $80,000	Up to $130,000
$1,000,000 – $1,500,000	$80,000 flat	$130,000 flat
$1,500,000 – $1,850,000	Declines linearly toward $24,000	Declines proportionally
$1,850,000 and above	$24,000 (existing rebate)	$24,000

One limit worth knowing: the rebate on the provincial portion can’t exceed the lesser of $80,000 and the provincial HST actually payable on your purchase. You can’t recover more tax than you paid — including anything your builder already credited at closing.

Get an estimate for your purchase →

Who qualifies

The enhanced rebate follows Ontario’s existing new housing rebate conditions, with added timing requirements.

You bought a newly built or substantially renovated home from a builder
Your agreement of purchase and sale is dated between April 1, 2026 and March 31, 2027
The home is the primary place of residence for you or a qualifying relation
You are the first person to occupy it after construction
Purchase price is under $1.85 million for enhanced relief
Construction begins and completes within the program's required timeframes

There is no first-time buyer requirement. This is the single most misunderstood thing about the program, and it’s why so many eligible buyers never look into it.

The construction timing conditions

Because this is a temporary measure, the regulations set outside dates for when the home must be built — construction must begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031.

This matters more than it sounds. On a pre-construction purchase, your rebate eligibility depends on your builder’s schedule, not just your paperwork. A project that stalls can put the rebate at risk on a home you’ve already committed to.

If you’re signing a pre-construction agreement now, this is worth raising with your lawyer before you sign — not after. Talk to us before you sign →

Assignment purchases

If you’re buying through an assignment, both the original agreement of purchase and sale and the assignment agreement generally need to fall within the April 1, 2026 – March 31, 2027 window.

Assignment purchasers are among the most likely to get this wrong in both directions — some assume they’ve missed out when they haven’t, others assume they qualify on the assignment date alone. The dates on both documents govern. Bring us both and we’ll tell you.

If you're a first-time buyer, read this carefully

There are several rebate programs running at once, and the interaction between them is where costly mistakes happen.

If you qualify for both the enhanced rebate and the Ontario First-Time Home Buyers’ rebate, you may claim either or both — but the total of all rebates for the 8% provincial portion cannot exceed the lesser of $80,000 and the provincial HST actually payable on your purchase.

In plain terms: you can draw on both programs, but they share one $80,000 ceiling on the provincial side. They do not stack to $160,000.

You may also see the mix shift between programs without your total changing — more arriving as federal rebate, less as Ontario top-up, or the reverse, with the same combined figure at the end.

Why this matters practically: if someone has told you the programs add together, that advice is wrong, and it may be driving a purchase decision. Get the number right before you commit, not after closing.

Compare the two programs →

If your builder is asking you to carry the HST at closing, get advice before you sign the amendment. The wording matters, and it’s easier to fix in advance than to argue afterwards.

March 31, 2027

The date that governs is when your agreement of purchase and sale is signed — not when you close, not when you take possession, not when you file.

Countdown Timer

Deadline Counter:

An agreement signed on March 31, 2027 qualifies. One signed on April 1, 2027 does not, on an otherwise identical home. There is no partial credit for being close.

Homes above $1.85 million continue to qualify for the existing $24,000 rebate — though that rebate has itself been flagged for elimination after the enhanced window closes.

Check your agreement date →

What we do

We’ve filed more than 2,500 GST/HST rebate applications and recovered over $65 million. The Excise Tax Act is the whole of this firm’s practice — not a service line within a general accounting business.

We tell you where you stand. Free. Bring your agreement date, purchase price, and closing details and we’ll give you a straight answer, including when the answer is no.
We build and file the claim. Forms, schedules, supporting documentation, filed with the CRA. You sign; we handle the rest.
We deal with the CRA. If your claim is reviewed, we respond. If it’s denied, we file the Notice of Objection and represent you through it — same engagement, not a separate bill.

A flat fee. Not a percentage.

Most firms in this business take a percentage of what you recover. That was reasonable when the ceiling was $24,000. On a $130,000 rebate, a 10% contingency is $13,000 — for work that hasn’t changed.

We charge a flat professional fee, quoted before you commit and charged when we file. Whether your rebate is $24,000 or $130,000, our fee is the same. The difference stays with you.

If the CRA ultimately denies your application and all appeals or opportunities for reconsideration have been exhausted or are no longer available, our agreement provides for a refund of our fee, less any out-of-pocket expenses, itemised in writing.

Michael Sproule has spent 15+ years dealing with the CRA on GST/HST matters specifically — not general accounting practice. Excise Tax is the whole of what this firm does.

Common Questions

Do I have to be a first-time buyer?

No. This is what separates the enhanced rebate from the other programs running alongside it. It’s open to all buyers of qualifying new homes — move-up buyers, downsizers, anyone meeting the standard conditions.

Which date matters — signing or closing?

Signing. Your agreement of purchase and sale must be dated between April 1, 2026 and March 31, 2027. Your closing date can fall outside that window.

Can I claim this and the first-time buyer rebate?

You can claim either or both — but the total of all rebates for the 8% provincial portion is capped at the lesser of $80,000 and the provincial HST actually payable. They share one ceiling rather than stacking on top of each other.

My builder says I have to pay the HST and claim it back myself. Is that legal?

It’s become a real feature of this market. The rebate framework moved faster than the administrative machinery behind it, and some builders are declining to carry the cost of crediting buyers at closing. You haven’t lost the rebate — you’ve become the person who has to claim it. That’s the work we do.

What if my home is worth more than $1 million?

The maximum holds flat at $130,000 through $1.5 million. Between $1.5 million and $1.85 million it declines proportionally. At or above $1.85 million, the existing $24,000 rebate applies instead.

I'm buying an assignment. Do I qualify?

Both the original agreement of purchase and sale and the assignment agreement must have been entered into between April 1, 2026 and March 31, 2027. If the original agreement pre-dates April 1, 2026, an assignment cannot bring it inside the window — and neither can varying or altering it. Bring both documents and we’ll tell you where you stand.

What does it cost?

A flat professional fee rather than a percentage of your rebate, quoted on your first call and charged when we file. Your initial assessment is free.

Three details and we can usually tell you

Your agreement date, your purchase price, and whether the home is your primary residence. That’s most of it.

Free assessment. Flat fee, quoted upfront and charged at filing. If you don’t have a claim, we’ll tell you.

This page describes the Ontario Enhanced New Housing Rebate in general terms as of August 2026 and is not tax advice. This is a new program and administrative guidance continues to develop. Eligibility depends on your specific circumstances. For source material see CRA Notice 346 and Guide RC4028.