The Ontario and federal Governments have expanded the HST rebate to assist both first-time and all homebuyers in reducing the upfront cost of purchasing a newly built home.

Eligibility Criteria

To qualify for the rebate, you must be at least 18 years of age. You must be a Canadian citizen or a permanent resident. In addition, you must not have owned a home, whether in Canada or abroad, that you or your spouse or common-law partner lived in during the current year or in any of the four preceding years.

The property you are purchasing must meet at least one of the following conditions:

• it must be purchased from a builder,
• it must be an owner-built home,
• or it must involve the purchase of shares in a co-operative housing corporation.

The federal government sets the eligibility criteria for the Ontario portion of the full HST rebate follows those set by the federal government, including that the individual must be acquiring the new home for use as their primary place of residence.

Rebate Details and Eligibility – ALL HOMEBUYERS

The Ontario government, in partnership with the federal government, has introduced an expanded HST rebate of the 13 per cent HST on new homes. The rebate is capped at $130,000 which is the HST on a home worth $1 million dollar home. The maximum rebate of $130,000 will still be available to buyers of homes with values between $1 million and $1.5 million.

For the full rebate to apply, agreements of purchase and sale must be signed between April 1, 2026 and March 31, 2027

For homes valued between $1.5 million and $1.85 million, the rebate is gradually reduced until it reaches $24,000 which is the lowest eligible amount.

Construction must begin by December 31, 2028, and be substantially completed by December 31, 2031.

Rebate Details and Eligibility – FIRST-TIME HOMEBUYERS

First-time homebuyers can claim a rebate for the full 13 per cent HST on the purchase price of homes valued up to $1 million. The rebate applies to Agreements of Purchase and Sale entered on or after March 20, 2025, and before January 1, 2031.

The rebate is reduced for homes priced between $1 million and $1.5 million. Buyers cannot claim a rebate for homes priced at or above $1.5 million.

Construction of the home must begin before 2031, and the home must reach substantial completion before 2036.

How to Apply – FIRST-TIME HOMEBUYERS

If you are purchasing a new home from a builder, you must submit your rebate application to the Canada Revenue Agency (CRA) once the home is substantially completed. If you are constructing an owner-built home, you should apply through the CRA after the construction of the home is fully completed.

Note: Processing times can vary, so keep all receipts and documentation related to the purchase or construction of the home.

• Ensure all eligibility criteria are met before applying to avoid delays or disqualification.

SPECIAL NOTE:

As of this posting the Federal Government application portal does not yet include application details for the expanded Ontario HST rebate for “all” buyers of new homes. TRREB is waiting for applications to open and we will update this fact sheet once the government revises the regulations and opens applications for the enhanced HST rebate.

For more detailed information on the first-time homebuyers rebate, visit the official Government of Canada website: GST/HST Rebate for First-Time Home Buyers

This information is provided as a general guide. For personalized advice, please consult a tax professional or financial advisor.