New builds and HST
The new-build HST credit in Ontario
Ontario has a temporary, enhanced HST relief for people buying a new home to live in. For eligible buyers it can cover a large share of the 13% HST, and for homes valued at $1 million or less, all of it. The catch is the timing: for a home bought from a builder, the agreement generally has to be signed by March 31, 2027. Here is how it works, in plain language, and how I can help you look at builders and what is available.
The key date
For a new home bought from a builder, the agreement of purchase and sale generally must be signed with the builder between April 1, 2026 and March 31, 2027.
That is the end of March 2027, the day before April 1, 2027. Agreements signed after that are not covered by this enhanced window in the same way. If you are thinking about a new build, it is worth starting the conversation early.What the credit is
When you buy a new home in Ontario, the price is subject to 13% HST. That is made up of an 8% provincial part and a 5% federal part.
What people call the “new-build HST credit” is temporary, enhanced relief delivered mainly through two pieces:
- The Ontario Enhanced New Housing Rebate (ENHR). Administered by the Canada Revenue Agency (CRA). Together with the existing Ontario new housing rebate, it gives combined relief of up to $80,000 of the 8% provincial part of the HST on a new or substantially renovated home valued up to $1,850,000.
- The Ontario New Home Affordability Payment (ONHAP). Administered by the Province of Ontario. It provides up to $50,000, equivalent to up to 100% of the 5% federal part of the HST, for people who are eligible for the ENHR. ONHAP is reduced by any GST/HST new housing rebate or first-time home buyers' GST/HST rebate you are entitled to.
Put together, the Government of Ontario says eligible buyers of new homes valued at $1 million or less can receive the full 13% HST relief, and buyers of homes valued above $1 million can receive relief below the full 13%.
The deadline and timing rules
The enhanced rebate generally applies in these situations, according to the CRA:
- Buying from a builder: the agreement of purchase and sale is entered into with the builder on or after April 1, 2026 and on or before March 31, 2027.
- Owner-built homes: construction or substantial renovation begins between April 1, 2026 and March 31, 2027.
- Co-op housing shares: the agreement to buy the share is entered into with the co-op between April 1, 2026 and March 31, 2027.
For a home bought from a builder, the CRA lists these additional conditions:
- Construction or substantial renovation begins on or before December 31, 2028, and the home is substantially completed on or before December 31, 2031.
- The GST/HST on the purchase becomes payable on or before December 31, 2032.
- The total price paid is less than $1,850,000.
- You buy the home to use as your own, or a relation's, primary place of residence.
The CRA also has special rules for assignment sales and for agreements first signed before April 1, 2026 and changed later. If either applies to you, read the CRA notice linked below and check with your lawyer.
How much it can be worth
The provincial part (ENHR together with the Ontario new housing rebate), as the CRA describes it:
| New home value | Provincial rebate |
|---|---|
| Up to $1 million | Full rebate: 100% of the 8% provincial part of the HST paid, up to $80,000 |
| Above $1 million, up to $1.5 million | Flat rebate of $80,000 |
| Above $1.5 million and below $1.85 million | Partial rebate of the provincial part |
| $1.85 million and above | No enhanced rebate. Only the regular Ontario new housing rebate of up to $24,000 |
The federal part (ONHAP): up to $50,000, equivalent to up to 100% of the 5% federal part of the HST, reduced by any GST/HST new housing rebate or first-time home buyers' GST/HST rebate you are entitled to.
Government of Ontario examples of the combined 13% relief. These are the province's own examples, not a promise of what any one buyer will receive:
| New home valued at | Relief you could qualify for |
|---|---|
| $500,000 | Full 13% relief of $65,000 |
| $700,000 | Full 13% relief of $91,000 |
| $1 million | Full 13% relief of $130,000 |
| $1.2 million | Maximum relief of $130,000 |
| $1.7 million | Reduced relief of approximately $69,400 |
| Above $1.85 million | Maximum relief of $24,000 |
Source: Government of Ontario, Building more homes faster. The total rebate cannot be more than the tax actually paid or payable.
Who it is generally for
- People buying a new or substantially renovated home from a builder, including a detached or semi-detached house, a townhouse or rowhouse, or a condo unit.
- People buying certain co-op housing shares.
- People who build their own home, or hire someone to build it, when construction starts inside the window above.
In every case, the home has to be for use as your primary place of residence, or a relation's. A “substantial renovation” is a big job: generally the interior is essentially gutted, with 90% or more of the interior of the existing home removed or replaced (the CRA calls this the 90% test).
The enhanced relief is not limited to first-time buyers. Whether you qualify depends on the official rules and your own situation.
How it is usually claimed
When you buy from a builder, the builder may pay or credit the rebate, and the ONHAP, to you at closing. In that case you assign the rebate to the builder and complete the CRA forms with them, which lowers what you pay on closing day.
- The CRA forms are GST190, the GST/HST New Housing Rebate Application for Houses Purchased from a Builder, and RC7190-ON, the GST190 Ontario Rebate Schedule.
- There is no separate ONHAP application. You fill out the consent-to-share section on the new housing rebate application so the CRA can share your information with Ontario.
- If the builder does not pay or credit the rebate, you can generally apply to the CRA yourself using the same forms.
Your lawyer handles closing and will usually review how the rebate is treated in the builder's agreement and on the statement of adjustments. That is a good question to ask before you sign.
How it differs from the first-time buyer GST rebate
There is a separate, longer-running federal program: the first-time home buyers' GST/HST rebate. It can rebate up to 100% of the 5% federal part of the HST, up to $50,000, on new homes valued at or below $1 million, phasing out between $1 million and $1.5 million. It generally applies to agreements entered into on or after March 20, 2025 and before 2031, so it has different dates from the March 31, 2027 window above.
If you qualify for the federal first-time buyer rebate, you must claim it first. Then ONHAP can cover any part of the 5% federal portion that the first-time buyer rebate did not.
How I can help
I can show you different builders and what is available in Ottawa and the surrounding area, from Orléans and the east end to Clarence-Rockland, Russell Township and beyond. We can look at new and nearly new homes side by side, talk about builder agreements and timelines, and walk through how the credit may affect a new-build purchase, so you can make your decision with the deadline in view.
I am a real estate salesperson with EXIT Results Realty, Brokerage, not a tax advisor, lawyer or accountant. I will help you understand the program and ask the right questions, and your lawyer and accountant confirm what applies to you.
Let's go over the details
Call or text me at 613-293-3337, or email pauldionottawa@gmail.com. Tell me where you would like to live and your budget, and I will put together builders and homes worth a look. I reply within one business day.
Selling your current home to buy new? Start with a free home value report.
Common questions
What is the deadline for the new-build HST credit?
For a home bought from a builder, the agreement of purchase and sale generally must be entered into on or before March 31, 2027, the day before April 1, 2027. The window opened on April 1, 2026. For owner-built homes, construction or substantial renovation generally must begin in that same window.
Is it only for first-time buyers?
No. The enhanced Ontario relief is not limited to first-time buyers. The federal first-time home buyers' GST/HST rebate is a separate program with its own rules and dates.
Does it apply to resale homes?
No. It is for new or substantially renovated homes, certain co-op shares and owner-built homes. A regular resale home does not have HST on the price.
Can I buy it as a rental or investment?
This rebate is for a home you or a relation will live in as a primary place of residence. Ontario has separate rebates for rental properties. Ask your accountant which, if any, applies to you.
Will the builder take care of it?
Often the builder pays or credits the rebate at closing if you assign it and complete the forms. Confirm how your builder handles it in writing, and have your lawyer review the agreement.
Official sources
- CRA: What is the Ontario Enhanced New Housing Rebate
- CRA: GST/HST Notice 346, Ontario Enhanced New Housing Rebate
- Government of Ontario: Building more homes faster
- CRA: First-time home buyers' GST/HST rebate
Please note. This page is general information based on the CRA and the Government of Ontario, checked November 9, 2026. It is not tax, legal or accounting advice. Whether you qualify, and how much, depends on the official rules and your own situation, and the rules can change. Before you rely on any number, have a lawyer and an accountant confirm what applies to you, and check the official pages above.