Ontario has temporarily expanded HST relief for qualifying newly built and substantially renovated homes.
Eligible buyers could receive:
Up to $80,000 through the Ontario Enhanced New Housing Rebate
Up to an additional $50,000 through the Ontario New Home Affordability Payment
Up to $130,000 in combined HST relief
Eligibility depends on the home’s value, the purchase-agreement date, construction timelines, intended occupancy, and other program requirements.
HST RELIEF AT A GLANCE
Homes valued at
up to $1 Million
Eligible buyers may receive relief equivalent to the full 13% HST, to a maximum of $130,000.
Homes valued between
$1 Million and $1.5 Million
The maximum combined relief remains capped at $130,000.
Homes valued between
$1.5 Million and $1.85 Million
The maximum relief is gradually reduced.
Homes valued at
$1.85 Million or more
The enhanced rebate and top-up are no longer available, but an existing Ontario New Housing Rebate of up to $24,000 may still apply.
PROGRAM BREAKDOWN
WHAT ARE THE TWO COMPONENTS?
- Ontario Enhanced New Housing Rebate
The Ontario Enhanced New Housing Rebate allows an eligible individual to recover up to $80,000 of the 8% provincial portion of the HST paid on a qualifying new or substantially renovated home. The Canada Revenue Agency (CRA) administers and assesses this component.
- Ontario New Home Affordability Payment (ONHAP)
The Ontario New Home Affordability Payment provides additional relief related to the 5% federal portion of the HST. It may provide up to $50,000 when the buyer qualifies for and receives the Ontario Enhanced New Housing Rebate. The Province of Ontario issues this payment after the CRA completes its assessment.
Combined Max Relief: Together, the two components may provide up to $130,000 in combined relief, not to exceed the actual HST paid or payable on the home.
QUALIFICATION CRITERIA & TIMELINES
WHO MAY QUALIFY?
The Ontario Enhanced New Housing Rebate may apply when an individual:
- Purchases a qualifying new or substantially renovated home from a builder
- Intends to use the property as their primary residence or the primary residence of a qualifying relation
- Meets the requirements of the existing Ontario New Housing Rebate
- Meets the applicable purchase-agreement and construction deadlines
- Pays or is responsible for paying the applicable HST
- Completes the required rebate documentation and consent forms
Eligible Property Types:
- Detached & Semi-detached homes
- Duplexes, Townhomes & Row houses
- Residential Condominium units
Investor Note: Long-term residential rental properties are governed by a separate Enhanced New Residential Rental Property Rebate program. Rental housing investors may also access expanded relief, but must follow different eligibility and filing rules.
IMPORTANT PROGRAM DATES
- Agreement Signed: Agreement of Purchase and Sale entered into between April 1, 2026 and March 31, 2027
- Construction Start: Begins on or before December 31, 2028
- Substantial Completion: Completed on or before December 31, 2031
- HST Payable Deadline: Payable no later than December 31, 2032
HOW THE APPLICATION & CREDITING PROCESS WORKS
HOW DOES THE REBATE PROCESS WORK?
- Explore Opportunities: Identify newly built homes, condominiums, or to-be-built options.
- Review Builder Pricing: Confirm whether the advertised price includes HST and assumes rebate assignment.
- Verify Timelines: Ensure agreement dates and completion timelines align with program cutoff dates.
- Confirm Primary Occupancy: Ensure the home will be the primary residence of the buyer or a qualifying relation.
- Determine Crediting Arrangement: Confirm whether the builder agrees to credit the rebate upfront at closing.
- Submit Documentation: Complete Form GST190 (GST/HST New Housing Rebate Application for Houses Purchased from a Builder) and Form RC7190-ON (GST190 Ontario Rebate Schedule).
Crediting Scenarios
-
- When the Builder Credits Upfront:
The builder credits the rebate to lower the amount payable at closing, submits the forms to the CRA, and receives the 5% ONHAP payment directly from Ontario after CRA assessment.
- When the Builder Does NOT Credit Upfront:
The buyer pays the full HST amount at closing and applies directly to the CRA. Buyers generally have up to 2 years from ownership transfer to submit. (Note: If HST became payable before regulations were implemented on June 12, 2026, buyers must apply directly through the CRA).
FIRST-TIME HOME BUYERS
SPECIAL RULES FOR FIRST-TIME HOME BUYERS
First-time home buyers may qualify for separate or additional GST/HST relief programs:
- Federal First-Time Home Buyers’ GST/HST Rebate: Up to $50,000 relief on federal HST for homes valued up to $1.5M (Agreement signed March 20, 2025 – Dec 31, 2030; completion before 2036).
- Ontario First-Time Home Buyers’ Rebate: Up to $80,000 toward the provincial HST portion.
- Interaction: Buyers claiming both first-time and enhanced rebates must apply federal first-time relief first; ONHAP then covers any remaining eligible federal portion. Total provincial relief cannot exceed $80,000.
PROPERTY LISTINGS & BUILDER DIRECTORY
EXPLORE NEW-BUILD HOMES
Explore currently listed new-construction opportunities in London and surrounding communities, including quick-possession, builder inventory, townhomes, condominiums, and custom homes.
EXPLORE LOCAL BUILDERS
Access the CENTURY 21 First Canadian builder directory to browse local builders, communities, lot availability, and floor plans throughout London and Southwestern Ontario.
WHAT SHOULD BUYERS CONFIRM BEFORE SIGNING?
Before signing a builder’s Agreement of Purchase and Sale, confirm with a professional:
- Does advertised pricing include HST and assume rebate assignment?
- What is your repayment obligation if you fail to qualify?
- What are the deposit schedules, occupancy fees, and closing adjustments?
- Are there assignment restrictions or builder termination clauses?
FAQ & DISCLAIMER
FREQUENTLY ASKED QUESTIONS
- Does every new-home buyer receive $130,000?
No. The actual amount depends on the purchase price, total HST paid, and eligibility criteria.
- Is the enhanced rebate restricted to first-time buyers?
No. It is available to non-first-time buyers purchasing a qualifying primary residence.
- Does the builder automatically credit the rebate?
No. Crediting must be explicitly agreed to within the purchase agreement.
- Can the rebate apply to residential rental properties?
Rental properties fall under the separate Enhanced New Residential Rental Property Rebate rules and require a different application process.
- Does Brian determine whether I qualify?
No. Brian provides general market guidance and developer options; official eligibility is determined by the CRA and Province of Ontario.
IMPORTANT DISCLAIMER
The information on this page is for educational purposes based on government criteria available as of August 2026. Brian Traboulay and CENTURY 21 First Canadian Corp. Brokerage are not affiliated with the Canada Revenue Agency or the Province of Ontario and do not determine rebate eligibility. Buyers should consult an experienced real estate lawyer, CPA, and the Canada Revenue Agency before entering into binding purchase contracts.
CENTURY 21 First Canadian Corp. Brokerage
INFO & SERVICES
CENTURY 21 First Canadian Corp. Brokerage
420 York Street, London, ON N6B1R1
(519) 673-3390
INFO & SERVICES
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