October 22, 2026. If you are shopping for a brand-new home in Ontario, the sales tax on it is the biggest cost most buyers never budget for: 13% HST on the purchase price. On an $800,000 new townhouse that is $104,000. Right now, two layers of relief can wipe most or all of it out. A temporary Ontario program covers every eligible buyer who signs with a builder by March 31, 2027, and a federal rebate covers first-time buyers through 2030. This guide explains the HST rebate on new homes in Ontario, who qualifies, what it is worth at common GTA prices, and the contract traps that can cost you the money.
How HST works on a new home
Resale homes in Ontario generally do not carry HST. New homes bought from a builder do. The 13% has two parts: a 5% federal part and an 8% provincial part. Each part now has its own rebate. Here is the line-up, from the Canada Revenue Agency (CRA) and the Ontario Ministry of Finance:
- Ontario enhanced new housing rebate (ENHR): up to $80,000, equal to up to 100% of the 8% provincial part. Open to any individual buying a new home as their own, or a relative’s, primary residence. Builder agreement must be signed between April 1, 2026 and March 31, 2027.
- Ontario new home affordability payment (ONHAP): up to $50,000, equal to up to 100% of the 5% federal part. Paid by Ontario to people who qualify for the ENHR. No separate application.
- First-time home buyers’ (FTHB) GST/HST rebate: up to $50,000 of the federal part, for first-time buyers whose builder agreement is signed after March 19, 2025 and before 2031.
- Ontario FTHB rebate: up to $80,000 of the provincial part for first-time buyers, following the same eligibility as the federal FTHB rebate.
- Regular Ontario new housing rebate: up to $24,000 of the provincial part, available at any price when the other conditions are met. This is what most repeat buyers get outside the temporary window.
Together, the ENHR and ONHAP “effectively relieve the full 13% HST on new or substantially renovated homes valued up to $1 million,” according to Ontario’s budget site, for total savings of up to $130,000.
How much each rebate is worth by price
CRA and Ontario publish these bands for the temporary program:
| New home value | ENHR (8% provincial part) | ONHAP (5% federal part) |
|---|---|---|
| Up to $1 million | 100% of the provincial HST, up to $80,000 | 100% of the federal HST, up to $50,000 |
| $1 million to $1.5 million | Flat $80,000 | Flat $50,000 |
| $1.5 million to $1.85 million | Partial | Partial |
| $1.85 million and up | No ENHR (regular rebate up to $24,000 only) | None |
The federal FTHB rebate works differently. It is the lesser of $50,000 and the federal HST for homes up to $1 million. Between $1 million and $1.5 million it shrinks in a straight line (CRA’s example: a $1.25 million home gets $25,000, half the maximum), and it is zero at $1.5 million or more.
Worked examples at GTA new-home prices
These use purchase prices before HST and the formulas published by CRA and Ontario. They assume you meet every condition and the home is your primary residence.
| Purchase price | Total HST (13%) | Relief if you sign by March 31, 2027 | HST left to pay | Repeat buyer who signs later |
|---|---|---|---|---|
| $650,000 condo | $84,500 | $84,500 | $0 | Rebate up to $24,000 |
| $800,000 townhouse | $104,000 | $104,000 | $0 | Rebate up to $24,000 |
| $1,000,000 semi or detached | $130,000 | $130,000 | $0 | Rebate up to $24,000 |
| $1,200,000 detached | $156,000 | $130,000 | $26,000 | Rebate up to $24,000 |
Two things jump out.
1. For repeat buyers, the deadline is worth a lot. A move-up family buying an $800,000 new townhouse gets $104,000 of relief with an agreement signed by March 31, 2027. Sign in April 2027 and, unless a new program replaces it, they fall back to the regular Ontario rebate of up to $24,000. That is $80,000 more tax. At $1,000,000 or $1,200,000 the gap is $106,000.
2. First-time buyers keep most of the benefit after the deadline. A first-time buyer at $800,000 gets $40,000 back through the federal FTHB rebate and $64,000 through the Ontario FTHB rebate, the same $104,000 total, as long as the builder agreement is signed before 2031. Inside the window, the extra programs mostly matter above $1 million. At $1,200,000 the federal FTHB rebate is $30,000; the ONHAP is reduced by that amount, to $20,000, so total federal relief stays at $50,000 and the total stays at $130,000.
CRA also caps all provincial-part rebates combined at the lesser of $80,000 and the provincial HST you actually pay. You cannot stack the ENHR and the Ontario FTHB rebate past that.
Who qualifies
The temporary Ontario rebate (ENHR and ONHAP)
- You buy a new or substantially renovated house, townhouse or condo unit from a builder, or build your own.
- It will be your primary residence or a relative’s (CRA defines relatives as parents, children, siblings, spouses and in-laws, among others). Parents buying a new condo for a child to live in can qualify. Rentals do not qualify for this rebate.
- The builder agreement is signed on or after April 1, 2026 and on or before March 31, 2027. For owner-built homes, construction must begin in that window.
- Construction must begin by December 31, 2028 and be substantially completed by December 31, 2031, and the price must be under $1,850,000.
The first-time buyer rebates
- You are 18 or older and a Canadian citizen or permanent resident.
- Neither you nor your spouse or common-law partner lived in a home either of you owned, anywhere in the world, during the year you take ownership or the four calendar years before. Someone who sold in 2020 and has rented since can qualify again in 2026.
- You are the first person to live in the home after it is built.
- Only one buyer applies. Parents can be on title for financing without breaking eligibility, but only the first-time buyer can claim, and only once in a lifetime for you and your spouse.
Six contract traps that can cost you the rebate
- The agreement date is what counts. CRA uses the date you and the builder agree to the deal, not the date conditions are waived or the date you close. A pre-construction condo signed in 2025 that closes in 2028 does not qualify for the temporary Ontario rebate.
- Assignments are tricky. For the ENHR, both the original builder agreement and the assignment agreement must be signed in the April 1, 2026 to March 31, 2027 window. For the federal FTHB rebate, an assignment of an agreement first signed before March 20, 2025 is treated as signed before that date, so the assignee gets nothing. See our guide to condo assignment sales in Toronto.
- Re-signing to qualify does not work. Cancelling a 2025 agreement and signing a new one with the same builder, a related builder, or through your spouse can be deemed to have been signed before the window unless there is a genuine reason other than the rebate.
- Read the “HST included” clause. Many builder price sheets quote prices with HST included and the rebates assigned to the builder. Ask whether the price already nets out the ENHR, the ONHAP and any FTHB rebate, whether the builder will credit them on closing, and what happens if you turn out not to qualify. Builders and buyers are jointly liable to repay a rebate the buyer was not entitled to.
- Plan for the wait if you apply yourself. If the builder does not credit the rebate, you file Form GST190 with the Ontario schedule RC7190-ON. CRA says to expect about 120 days to process claims, possibly with up to six more months for audit, and the ONHAP is paid separately by Ontario. Your lender and your closing funds should not depend on that cheque.
- Watch the two-year limit. FTHB applications are generally due within two years after ownership transfers to you. Keep the agreement, statement of adjustments and proof of occupancy for six years.
Do not forget land transfer tax
The HST rebate does not touch land transfer tax. There is one piece of good news from Ontario’s Ministry of Finance: when HST applies, land transfer tax is not charged on the HST itself, only on the price (plus items like upgrades and soft costs). On an $800,000 new home in Toronto, Ontario’s tax is $12,475 and Toronto’s municipal tax is another $12,475, for $24,950. First-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto, which brings it to $16,475. At $1,200,000 the two taxes total $40,950. Outside Toronto, only the Ontario tax applies. Run your own number in our Ontario and Toronto land transfer tax calculator, and see our first-time buyer FHSA, HBP and land transfer rebate guide for the rest of the first-time buyer toolkit.
Selling first so you can buy new before the deadline
Because the temporary Ontario rebate is open to repeat buyers, a lot of move-up owners will try to sell a resale home and sign with a builder before March 31, 2027. If that is you, two things matter: the timing of your sale, and what you keep from it.
On the timing, a new-build closing can be months or years away, so talk to your lender about bridge financing or carrying both homes before you sign. On the cost, a 2.5% listing commission on a $1,000,000 sale is $28,250 with HST. National Home Realty lists for a flat $6,000 + HST ($6,780), so you keep $21,470 more, money that can go straight into your new-home deposit. The flat fee covers the listing side only; any commission you offer a buyer’s agent is separate. See how our $6,000 flat-fee listing works.
Buying resale instead? Cash back still applies
If the numbers point you to a resale home, there is no HST rebate to chase, but you can still lower your cost. With National Home Realty you get up to 50% of the cooperating commission we receive as cash back. On a $1,000,000 home at a 2.5% commission ($25,000), that is $12,500 when your first offer goes in within 7 days of your first showing ($8,750 in days 8 to 14, $6,250 in days 15 to 21). It is paid on closing and shown on your closing statement, and the final amount is set in your written agreement and depends on the commission we actually receive. Builder agreements can limit or exclude commission rebates, so if you are buying new, send us the builder contract before you sign and we will tell you what applies. Get your cash back estimate.
Your checklist before March 31, 2027
- Price your options: new build (with HST rebates) versus resale (with cash back) at the same budget.
- Confirm your status: first-time buyer, repeat buyer, or buying for a relative.
- Get the builder’s agreement reviewed by a real estate lawyer, especially the HST and rebate-assignment clauses, before you sign (for a new condo, before the statutory cooling-off period ends).
- Check the build timeline against CRA’s construction deadlines.
- If you are selling first, get a listing plan and a net-proceeds number now. Book a free listing consultation.
Sources
- Canada Revenue Agency, What is the Ontario ENHR and GST/HST Notice 346, Ontario Enhanced New Housing Rebate (August 2026)
- Ontario Ministry of Finance, The Ontario New Home Affordability Payment (September 17, 2026)
- Canada Revenue Agency, GST/HST Memorandum 19-3-10, First-time Home Buyers’ GST/HST Rebate (October 2026) and FTHB GST/HST rebate: who can apply
- Canada Revenue Agency, Ontario ENHR: after you apply and GST/HST new housing rebate
- Ontario Ministry of Finance, Calculating land transfer tax and Land transfer tax refunds for first-time homebuyers
- City of Toronto, MLTT rates and fees and MLTT rebate opportunities
- National Home Realty, Buyers cash-back rebate and Sell your home
This article is general information only, not tax, legal, mortgage or brokerage advice. Rebate examples use CRA and Ontario formulas, purchase prices before HST and the stated assumptions; eligibility depends on your agreement, your status and CRA’s assessment, and programs can change. Land transfer tax examples use Ontario and Toronto rates for a one- or two-family home. Cash back depends on the commission National Home Realty actually receives and your written agreement. Confirm every figure with your lawyer, builder, lender and National Home Realty before you rely on it. National Home Realty is powered by Cityscape Real Estate LTD., Brokerage.