Ontario HST Rebate: One Year Window

First, what is the HST on a new home?

In Ontario, 5% federal GST and 8% provincial sales tax = 13% HST

Harmonized Sales Tax (HST) combines both federal and provincial sales tax (if a province charges the latter).

• GST (Goods and Services Tax) — is charged by the federal government on every new home built in Canada.
• PST (Provincial Sales Tax) — some provinces charge a sales tax, including on newly built homes, with those funds going directly to the province.

Ontario uses the 'harmonized' administrative process, which allows the CRA to collect and manage both taxes, simplifying your tax payments, credits, and rebates. The CRA then remits the sales tax portion back to the province.

HST rates can vary by province, but Ontario's is 13% and applies to all newly built homes.

Ontario's HST rebate expands the GST rebate already available to first-time buyers.

For first-time buyers, the federal Liberal government allows eligible first-time buyers across Canada to apply for a GST rebate when buying brand-new homes.

The Ontario government instituted the new HST rebate (both PST and GST) to help all buyers of a newly built home in the province save some cash, including first-timers, repeat buyers, and newcomers to Canada — the rebate differs for long-term rental property purchases.

How much can you save with the HST rebate?

The rebate amounts below apply to a primary home purchase, and how much you can access depends on eligibility and the price of the new home:

• Up to $1M – Full 13% HST rebate, maximum rebate of $130,000
• $1M to $1.5M – Flat $130,000 maximum
• $1.5M to $1.85M – Maximum rebate scales down from $130,000 to $24,000
• At or above $1.85M – $24,000 maximum rebate

A separate HST rebate exists for new homes bought as long-term rentals, worth up to $80,000 per unit, but the rebate may be handled differently.

Isn't there already a GST/HST New Housing Rebate?

Yes, there is a long-standing, pre-existing GST/HST rebate administered by the CRA — and if you've ever filed a GST return, it's a standard line item.

This rebate consists of two components: a federal portion (5% GST) capped at about $6,000, and an Ontario portion (8% provincial component of HST) capped at $24,000. But it also comes with a home price limit, so homes above $450,000 receive no meaningful rebate.

Compared with this rebate, the 2026 HST rebate expansion, even if only temporary, is a much bigger bargain — offering substantially more savings for buyers of newly built homes in Ontario.

Who qualifies for the HST rebate?

Whether you're a first-time home buyer or a repeat buyer, you can qualify for the HST rebate if you buy a newly built primary property in Ontario (for yourself or relatives to live in, e.g. parents buying for their adult child).

The home purchase agreement must be signed on or between April 1, 2026, and March 31, 2027.

The rebate can also apply to investors buying residential rental properties, as well as newcomers and permanent residents.

Important construction start and stop dates also affect eligibility — please see the table below.

Note: Other criteria may apply.

Which properties are HST-rebate eligible?

Not all newly built properties in Ontario are eligible for the rebate. The property must be used as a primary residence or a long-term rental.

Here are the property types that can qualify for a full HST rebate:

• Detached and semi-detached houses
• Townhouses and rowhouses
• Condominium units
• Duplexes and triplexes, considering that the unit will be used as either the primary residence or a long-term rental space

Some properties that don't qualify for the full HST rebate:

• Resale homes — HST isn't charged on these home sales
• Vacation properties
• Secondary properties
• Properties that will be used for short-term rentals, such as Airbnb
• Commercial properties

Note: Other criteria may affect rebate eligibility.

How do you claim the HST rebate?

You can access Ontario's HST rebate in one of two ways:

1. Easiest, most common. The builder takes it off your home price at closing, and you sign a form giving the builder permission to claim the rebate, and they collect the money from both the federal and provincial government after closing.
2. Longer wait for the rebate cash. You pay the full tax at closing, then claim it back yourself. You send in one form to the CRA — and you'll receive two amounts: one from the CRA and one from the province. This process takes more time to receive the full rebate.

One word of caution. If you use the first option to access the rebate, you have to qualify. If the builder gives you the rebate and it turns out you weren't eligible, you have to pay it back to the builder.

For either option, keep all your paperwork. Hold on to your purchase agreement and closing documents in case the government asks for proof.

Buying a rental property? Ontario's temporary residential rental property HST rebate is a separate program, called the ENRRP (Enhanced New Residential Rental Property Rebate), and may have different qualifying or claim details. Look it up here: Ontario Residential Rental Property Rebate.

Is the HST rebate raising pre-construction home prices and sales?

On paper, the HST rebate, which doesn't affect the builder's required revenue for pre-construction financing, should simply be passed on to the buyer, effectively lowering new-home or pre-construction prices — by a lot, if a home is around $1M.

But data from the Greater Toronto Area suggest that some builders have raised prices since the HST rebate announcement — baking in a portion of the rebate.

Do the price increases constitute a cash grab? Given the depressed state of new-home building in the province, some experts believe prices are likely being calibrated to remain attractive to buyers chasing the rebate discount, while protecting earlier pre-construction buyers and builders from being underwater (owing more than what it's worth) to avoid financing failures and collapsed closings.

The more attractive it is for builders to build, the more new homes will be brought to market. Because home values are higher in many of Ontario's centres than in other Canadian centres, more inventory helps improve affordability and balance markets.

Home sales activity has increased since the HST rebate was announced. This summer, the HST rebate was credited with a 130% year-over-year rise in second-quarter sales. And in the GTA, those sales were mostly single-family homes.

How is the rebate affecting the condominium market?

Condo sales in Ontario haven't seen the same boost — just a slight increase in activity, not enough to lift this market out of the basement. In August 2026, condo apartment sales were still well below the 10-year average. 

In fact, with many Ontario condo markets saturated with small-square-footage offerings, the HST rebate is helping families access a more livable space, like single-detached houses, semi-detached houses, and townhomes. A studio or one-bedroom condo doesn't fit that bill.

Within 120 days of completion? We can help you save.

Most pre-construction financing is arranged through the builder or developer and often requires an upfront deposit to secure your home purchase while it's being built.

When construction is nearing completion and it's time to finalize your home financing, getting the best rate and mortgage can help you save thousands.

With access to traditional, alternative, and private lenders, we know the Ontario housing and rate markets, and our expert brokers go the extra mile to get your deal done — on time and within your budget.

Wherever you are in Canada, get real brokers, real advice, and your best mortgage to come home to. Give us a shout online, over the phone, by email, or stop by a store location near you.