If you’re considering purchasing a new construction home in Ontario, the temporary enhanced HST rebate represents one of the most significant affordability measures introduced in 2026. Designed to support homebuyers and encourage new housing development, the program increases HST relief on eligible new homes, with potential savings of up to $130,000 for qualifying properties.
What is the enhanced HST rebate in Ontario?
The enhanced HST rebate is a federal and provincial initiative aimed at reducing the tax burden on eligible new home purchases. The program can effectively offset up to 13% HST (5% federal and 8% provincial) for qualifying buyers. However, eligibility depends on factors such as purchase price, agreement dates, property use, and other program requirements. Understanding the rules, timelines, and qualification criteria is essential to maximizing the potential savings.
So how much can you potentially save?
The amount you can receive through the enhanced HST rebate depends on your home's purchase price and your eligibility under the program.
1) Homes priced up to $1.5 million
- Eligible buyers may receive up to $130,000 in HST rebates on qualifying primary residential purchases.
2) Homes priced between $1.5M and $1.85M
- The rebate gradually decreases on a sliding scale, from $130,000 to $24,000 as the purchase price increases.
3) Homes priced over $1.85M
- Homes priced above $1.85 million are not eligible for the enhanced rebate. However, qualifying buyers may still be eligible for the existing HST rebate of up to $24,000, subject to the current program rules.
Who qualifies for the Ontario enhanced HST rebate?
The enhanced HST rebate is designed to provide relief to a broader range of buyers including:
- First-time homebuyers
- Move-up buyers
- Downsizers
with eligibility depending on factors such as the purchase agreement, intended use of the property, and construction timelines.
To qualify, the property generally must be a newly constructed home or a substantially renovated property and must be used as a primary residence or an eligible long-term rental property. Buyers must also ensure their purchase agreement and construction milestones fall within the required program deadlines:
- Agreement signed: Apr 1, 2026 → Mar 31, 2027
- Construction starts: on/before Dec 31, 2028
- Substantial completion: on/before Dec 31, 2031
If you’re looking to take advantage of this limited-time opportunity, it’s important to plan ahead, and ensure every step of the purchase process aligns with the program guidelines. Here are some important tips to help you make the most of this opportunity.
Tip#1 Check if Your Pre-Construction Project Qualifies
The enhanced HST rebate is time-sensitive, so timing is crucial. If you're buying a new construction condo, townhome, or freehold in Ontario, make sure your purchase meets the program's eligibility deadlines.
Many newly built properties may qualify for the rebate, but eligibility depends on key details such as the Agreement of Purchase and Sale (APS) date, construction milestones, and other program requirements. Reviewing these factors early can help ensure you don’t miss out on potential savings and help you make a more informed purchasing decision.
Tip #2 Investors May Be Eligible Too
If you're buying a newly built home or condo as a long-term rental, you may qualify for the Enhanced New Residential Rental Property Rebate. Eligibility depends on the property's intended use and meeting the applicable CRA requirements.
Tip #3: Stay Informed With Program Updates
While the rebate program has been announced, some aspects of its implementation depend on federal legislation and administrative guidance. As a result, eligibility criteria, application processes, and other details may continue to evolve. Staying informed can help you make decisions based on the latest rules.
Tip #4 Understanding the Eligibility requirements
Qualifying for the enhanced HST rebate isn't always straightforward. Your eligibility may depend on factors such as how the property will be used, the structure of your purchase agreement, and the details of your closing. Because every situation is different, it's a good idea to consult a real estate lawyer, accountant, or experienced realtor to ensure you understand your eligibility and maximize any available rebate.
Tip #5 Check the Builder Pricing Structure
Not all builders structure pricing and HST rebates the same way. Some may credit the rebate at closing, while others may require the purchaser to apply to CRA directly. Before signing an Agreement of Purchase and Sale, review how the rebate is handled and understand any clauses that could affect your final costs or eligibility. It is encouraged to work with a trusted realtor to guide you through the process.
Final thoughts
If you’re considering pre-construction or newly built condos and low-rise homes in Ontario, this rebate can represent one of the best opportunities in recent years to reduce your total cost. The key is structuring the purchase correctly and staying inside the required timelines.
If you’re looking at a specific project (or want a shortlist that matches your budget and timeline), book a call or schedule a private viewing with our team.
Let us help you:
- Estimate potential rebate savings
- Pressure-test eligibility based on your situation
- Compare projects that fit your goals
Source: Canada Revenue Agency, "Ontario Enhanced New Housing Rebate (Notice 346)," .Government of Canada
