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HST Housing Rebate

TRREB is the voice of REALTORS® at City Hall, Queen’s Park and on Parliament Hill on issues that impact the GTA and Simcoe County real estate market. As part of that work, we regularly monitor policy implementation that influences housing and real estate more broadly. We encourage you to share this information. The Ontario Enhanced New…

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TRREB is the voice of REALTORS® at City Hall, Queen’s Park and on Parliament Hill on issues that impact the GTA and Simcoe County real estate market. As part of that work, we regularly monitor policy implementation that influences housing and real estate more broadly. We encourage you to share this information.

The Ontario Enhanced New Housing Rebate (Ontario ENHR) is now in effect, and both levels of government have updated information builders and buyers need to apply for tax relief.

What TRREB Members and Their Clients Need to Know 

In late June 2026, the Canada Revenue Agency (CRA) published guidance on the Ontario Enhanced New Housing Rebate (Ontario ENHR), along with the regulations needed to implement the program.

The publication of these regulations provides the certainty and clarity that builders, purchasers, lawyers, lenders, and sales teams have been waiting for since the enhanced rebate was announced on March 25, 2026. This is an important milestone for Ontario’s new housing market, confirming how the enhanced HST relief program will be administered and allowing new home transactions to proceed with greater confidence and reduced transaction risk.

The Ontario ENHR increases the total HST relief available to eligible purchasers of new homes. Eligible homebuyers may now qualify for up to $130,000 in combined federal and provincial HST rebates, subject to the program’s eligibility requirements. The rebate generally applies where the Agreement of Purchase and Sale is entered into between April 1, 2026, and March 31, 2027 for all home buyers, provided all eligibility requirements are met.

For clarification, eligible “first-time” buyers purchasing new homes benefit from separate eligibility rules for the GST/HST rebate program that has been in place for a few months with different timelines (retroactive to March 2025 and expires January 1, 2031). Refer to the first-time buyers’ GST/HST rebate for details of this separate program.

Rebate Amounts

According to the CRA, the enhanced rebate is structured as follows:

  • Homes valued up to $1 million: Eligible purchasers can receive the full combined rebate of the 8 per cent provincial portion of the HST rebate (up to $80,000) and the 5 per cent federal part of the HST referred to as Ontario top-up (up to $50,000), for a maximum total rebate of $130,000.
  • Homes valued between $1 million and $1.5 million: Eligible purchasers can receive a flat combined rebate of $130,000.
  • Homes valued between $1.5 million and $1.85 million: The combined rebate is phased out based on the purchase price.
  • Homes valued at $1.85 million or more: Purchasers are not eligible for the temporary enhanced rebate and instead remain subject to the existing Ontario New Housing Rebate rules, which provide a maximum provincial rebate of $24,000, where applicable.

Eligibility

The enhanced rebate follows the existing eligibility requirements for Ontario’s New Housing Rebate. In general:

  • The purchaser must be an eligible individual purchasing a new or substantially renovated home from a builder;
  • The home must be intended for use as the purchaser’s (or a relation’s) primary place of residence; and
  • All existing eligibility requirements under Ontario’s current New Housing Rebate continue to apply.

How the Enhanced HST Rebate Works

For Buyers

Eligible purchasers who enter into an agreement of purchase and sale between April 1, 2026, and March 31, 2027, for a newly constructed home intended to be their primary residence can receive the benefit of the 8 per cent provincial HST rebate (up to $80,000) and Ontario’s new 5 per cent HST top-up to cover the federal GST portion (up to $50,000) at closing. To receive the rebate upfront, buyers must assign both rebates to the builder and complete the GST/HST New Housing Rebate application (Form GST190) together with the Ontario schedule (RC7190-ON).

Rather than paying the full HST and waiting for reimbursement, eligible buyers should see the rebate applied directly against the purchase price, reducing the amount they must pay on closing.

For Builders

Builders are responsible for applying both rebates at closing by crediting the purchaser up to $130,000, consisting of the provincial 8 per cent HST rebate and the Ontario top-up to cover the federal 5 per cent GST portion. The builder reports the full HST collected on the sale through its regular GST/HST return and claims a deduction only for the 8 per cent provincial HST rebate that it credited to the purchaser.

The builder does not claim the Ontario 5 per cent top-up for the federal GST portion through its GST/HST return. Instead, it submits the completed rebate application and Ontario schedule to the CRA, together with the purchaser’s consent to share the required information with the Province of Ontario. No separate provincial application is required.

For Government

The CRA reviews the rebate application and verifies the purchaser’s eligibility for the 8 per cent GST/HST New Housing Rebate. Once verified, the CRA shares the necessary purchaser, builder, and rebate information with the Province of Ontario. The Ontario Government then processes the 5 per cent federal HST top-up payment directly to the builder, reimbursing the builder for the amount it credited to the purchaser at closing.

This coordinated process allows eligible purchasers to receive the full benefit immediately while limiting additional administrative steps for builders and buyers.

See the Government of Canada’s infographic for more information on the expected process.

Administration of the Enhanced HST Rebate

For TRREB Members who are working with builders, according to the Ontario Home Builders’ Association (OHBA), the administration process is expected to operate as follows:

  • Builders will apply for the assigned rebate using the existing CRA portal currently used for the Ontario New Housing Rebate.
  • The CRA, acting on behalf of both the federal and Ontario governments, will determine purchaser eligibility using the same eligibility criteria that apply to the current Ontario New Housing Rebate.
  • Builders will continue to submit rebate applications using Form GST190, which the CRA has indicated will be updated to reflect the enhanced rebate program. No changes are expected to the associated Schedule RC7190-ON.
  • The CRA portal now includes a consent section allowing the agency to share the necessary information with Ontario’s Ministry of Finance to administer the federal 5 per cent GST portion of the rebate.
  • Once eligibility is confirmed, the CRA will reduce the builder’s HST liability for the provincial portion of the rebate.
  • The CRA will provide the Ontario Ministry of Finance with a monthly list of eligible federal rebate payments. The Ministry has committed to issuing electronic payments to builders within 30 days, while cheque payments may take longer.

The CRA has also published an infographic illustrating the rebate claim process to assist builders and purchasers in understanding how the program will operate.

Although assigning the rebate to the builder is expected to be the most efficient process, purchasers may still elect to pay the full 13 per cent HST at closing and apply directly to the CRA for the rebate after the transaction.

Resources

The CRA has published the following resources for Members and their clients:

The full implementation of the enhanced HST rebate is a significant win for housing affordability, and something that a TRREB-led housing coalition, OREA and CREA have advocated for several years.

As always, REALTORS® should avoid providing tax or legal advice to their clients. Members should direct clients to the CRA’s guidance and recommend they seek advice from their lawyer or tax professional where eligibility or rebate calculations are in question.

Disclaimer: The information contained in this communication is not meant to be relied upon as legal or business advice. Individuals wishing further clarity or advice should seek independent legal advice specific to their circumstances. The regulatory environment is changing, and this document may not be current or accurate by the time it is read. 

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