The 2026 GST/HST Rebates for New Homes in Ontario: A Buyer's Guide to Saving Up to $130,000

Published by Culp & Massey Law Office — Brantford, Ontario

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If you are thinking about buying a newly built home or pre-construction condominium in Ontario, 2026 may be the most important year in more than a decade to pay close attention to the tax rules. Two new rebate programs — one federal and one provincial — have been rolled out in the last few weeks, and together they can eliminate tens of thousands of dollars in Harmonized Sales Tax (HST) on a qualifying new home. For eligible purchasers, the combined savings can reach up to $130,000.

This guide explains, in plain language, what the new programs are, who qualifies, how much you can save, and the key dates and deadlines you need to know before you sign an Agreement of Purchase and Sale.

Quick Summary

• The federal First-Time Home Buyers' GST/HST Rebate can return up to $50,000 of the federal GST paid on a new home. It is now law, and the CRA is accepting applications.

• The Ontario Enhanced HST Rebate (from the 2026 Ontario Budget) can return up to $80,000 of the provincial portion of the HST, and is available to all eligible new-home buyers — not only first-time buyers — for agreements signed between April 1, 2026 and March 31, 2027.

• Combined, the savings on a new home valued up to $1.5 million can reach $130,000.

• These rebates apply only to newly built or substantially renovated homes. They do not apply to resale homes.

Part 1: The Federal First-Time Home Buyers' GST/HST Rebate

What is it?

The federal First-Time Home Buyers' GST/HST Rebate (the "FTHB GST/HST Rebate") was introduced as part of Bill C-4, the Making Life More Affordable for Canadians Act. The bill received Royal Assent on March 12, 2026, and the Canada Revenue Agency (CRA) began accepting applications on March 17, 2026.

The program eliminates the 5% federal GST (or federal portion of the HST) on qualifying new homes bought, built, or substantially renovated by first-time home buyers.

How much can you save?

• Homes up to $1,000,000: Full 5% GST rebate — up to $50,000.

• Homes from $1,000,000 to $1,500,000: Partial rebate on a sliding scale (for example, a home at $1.25 million qualifies for approximately $25,000).

Homes $1,500,000 and above: No rebate under the FTHB program.

For comparison, the previous GST New Housing Rebate maxed out at roughly $6,300 — a figure that had become largely irrelevant given current Ontario home prices.

Who qualifies?

To qualify as a "first-time home buyer" under the federal rules, the following conditions must generally be met at the time ownership of the home is transferred:

• You must be at least 18 years of age;

• You must be a Canadian citizen or permanent resident;

• Neither you nor your spouse or common-law partner can have lived in a residential unit that either of you owned in the current calendar year or in any of the four preceding calendar years (this applies whether the prior home was in Canada or anywhere else in the world);

• Neither you nor your spouse or common-law partner can have previously claimed the FTHB GST/HST Rebate;

• The home must be purchased for use as your primary place of residence;

• The rebate is not available to corporations or partnerships.

Key dates

• Agreement of Purchase and Sale must be signed on or after March 20, 2025, and before 2031.

• Construction of the home must begin before 2031 and be substantially completed before 2036.

• There is generally a two-year time limit to file the rebate application from the date you take ownership or construction is completed. Missing that window means losing the rebate entirely.

  
  

How do you claim it?

There are two routes:

1. Through the builder at closing. For new agreements, the builder can credit the rebate directly on your Statement of Adjustments, reducing the cash you need to bring to closing. The builder then files Form GST190 with the CRA.

2. Directly with the CRA. If you took possession before Royal Assent (March 12, 2026), or the builder did not credit the rebate at closing, you apply yourself using Form GST190 (builder-purchased homes) or Form GST191 (owner-built homes) through your CRA account or by mail.

Part 2: The Ontario Enhanced HST Rebate (2026 Ontario Budget)

What is it?

On March 25–26, 2026, the Government of Ontario announced an enhanced HST rebate on new homes, temporarily removing the full 8% provincial portion of the HST on qualifying purchases. This measure was tabled as part of the 2026 Ontario Budget and is being coordinated with the federal government to rebate the 5% federal portion as well.

Unlike the federal FTHB rebate, the Ontario enhancement is not limited to first-time buyers. It is available to all eligible buyers of new homes — including move-up buyers, downsizers, and investors purchasing new residential rental property.

How much can you save?

• Homes up to $1,000,000: Full 13% HST rebated — up to $130,000.

• Homes from $1,000,000 to $1,500,000: Flat $130,000 rebate maintained.

• Homes from $1,500,000 to $1,850,000: Rebate declines on a sliding scale from $130,000 down to $24,000.

• Homes above $1,850,000: Existing $24,000 provincial rebate continues to apply.

Who qualifies?

• The home must be a detached or semi-detached house, a condominium unit, a townhouse, or a rowhouse;

• The home must be purchased for use as a primary place of residence, or as a new residential rental property for long-term tenants;

• All other eligibility rules under the existing Ontario HST New Housing Rebate and New Residential Rental Property Rebate continue to apply.

Key dates

• The Agreement of Purchase and Sale must be entered into between April 1, 2026 and March 31, 2027. Agreements signed outside this window do not qualify for the enhanced rebate.

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

• Important: Where a purchaser qualifies for both the enhanced Ontario rebate and the federal FTHB rebate, the purchaser receives the greater of the two, not both.

A note on legislative status: The Ontario enhancement is subject to federal regulatory amendments to the Excise Tax Act (Canada). As of the date of this post, the implementing federal legislation has not yet been passed. The program has been announced and detailed in the 2026 Ontario Budget, but the final claim mechanics and CRA forms will be finalized once the federal amendments are in place.

Part 3: What This Looks Like in Practice

Example 1: First-time buyer purchasing a $700,000 new townhouse in Brantford

On a $700,000 new build, the 13% HST would normally amount to approximately $91,000. If the Agreement of Purchase and Sale is signed during the April 1, 2026 – March 31, 2027 window and the buyer qualifies as a first-time home buyer:

• Federal GST portion rebated: approximately $35,000

• Provincial HST portion rebated: approximately $56,000

• Approximate total savings: up to $91,000

Example 2: Move-up buyer (not a first-time buyer) purchasing a $900,000 new detached home

The federal FTHB rebate would not be available, but the Ontario enhanced rebate is available to all buyers. Under the enhanced program, the full 13% HST on a $900,000 home can be rebated, for savings of roughly $103,540, provided the agreement is signed during the April 1, 2026 – March 31, 2027 window and all other conditions are met.

Example 3: First-time buyer who signed an Agreement of Purchase and Sale in late 2025

If the Agreement is dated on or after March 20, 2025, the federal FTHB GST/HST Rebate may still be available, even though the buyer already closed before Royal Assent. In that situation, the rebate cannot be credited by the builder at closing — instead, the buyer applies directly to the CRA for the refund, and must do so within the two-year window.

Part 4: Frequently Asked Questions

Does the rebate apply to resale homes?

No. Both the federal FTHB rebate and the Ontario enhanced rebate apply only to newly constructed or substantially renovated homes purchased from a builder, built by the owner, or acquired through co-operative housing corporation shares. Resale homes are not eligible.

Does the rebate apply to pre-construction condos?

Yes, pre-construction condominium units are generally eligible, provided the Agreement of Purchase and Sale is signed within the applicable window, construction begins and is completed within the required timelines, and all other eligibility conditions are met. However, pre-construction timelines can be long, so careful attention to the construction start and substantial completion deadlines is essential.

What if I am buying with my spouse or common-law partner?

For the federal FTHB rebate, neither you nor your spouse or common-law partner can have lived in a home that either of you owned in the current calendar year or any of the four preceding calendar years. If only one spouse satisfies the "first-time buyer" test, the claim can still be complicated, and professional advice is recommended before signing the Agreement of Purchase and Sale.

Can both spouses claim the rebate on separate homes later?

No. The rebate is limited to one claim per individual, and you are ineligible if your spouse or common-law partner has previously claimed it.

What if I bought a home to rent it out?

The federal FTHB rebate requires the home to be your primary place of residence, so rental properties do not qualify. However, the Ontario enhanced rebate explicitly extends to new residential rental properties purchased by landlords for long-term residential tenancy, provided construction timeline requirements are met. The New Residential Rental Property Rebate (NRRPR) continues to apply in these cases.

How do I know if my property qualifies as "substantially renovated"?

The CRA applies a detailed test to determine whether renovations are substantial. Generally, approximately 90% or more of the interior of the existing house must have been removed or replaced. Conversions of non-residential property into a house, or major additions that accompany substantial renovation, may also qualify. Professional guidance is strongly recommended before assuming a renovation is "substantial" for rebate purposes.

What happens if the names on title change at the lender's request?

This is a frequent source of rebate denials. If a parent, uncle, aunt, or other relative is added to title to help the buyer qualify for financing, the CRA's position under the Excise Tax Act has historically been that if even a single registered owner does not qualify, all buyers may be disentitled to the rebate. Careful structuring of title before closing is critical.

What is the difference between the "GST/HST Credit" and the "GST/HST Rebate on New Homes"?

These are completely different programs. The GST/HST Credit is a quarterly, income-tested payment for lower and moderate income households. The GST/HST Rebate on New Homes (including the new FTHB rebate) is a one-time transaction-based refund tied specifically to the purchase of a new home. Confusing the two is common and can lead to miscalculated savings.

Part 5: What You Should Do Before Signing an Agreement

If you are considering the purchase of a new home, a pre-construction condominium, or are building on your own land in the coming year, the following steps will help protect your entitlement to the rebate:

1. Confirm the eligibility window. For the federal rebate, the Agreement of Purchase and Sale must be dated on or after March 20, 2025. For the Ontario enhanced rebate, the Agreement must be dated between April 1, 2026 and March 31, 2027. Signing one day outside the window can cost you tens of thousands of dollars.

2. Verify first-time buyer status. Review the past four calendar years of ownership history for both you and your spouse or common-law partner, worldwide — not just in Canada.

3. Review your Agreement carefully for rebate assignment language. Most builders now include a clause assigning the rebate to the builder at closing in exchange for a reduced purchase price. Make sure the figures are correct.

4. Confirm the home will be your primary place of residence. Investment properties do not qualify for the FTHB rebate.

5. Structure title correctly. If a family member is being added to title for mortgage qualification purposes, speak to a real estate lawyer before closing — not after — to avoid disqualifying the rebate.

6. Keep all documentation. Retain the Agreement of Purchase and Sale, Statement of Adjustments, final invoice, and proof of occupancy. You may need these if the CRA audits your rebate.

7. Apply within the two-year window. If the builder did not credit the rebate at closing, make sure your application is filed with the CRA within two years of the date you took ownership.

   
   

How Culp & Massey Law Office Can Help

Our real estate practice has been handling new construction closings, pre-construction condominium closings, and first-time home buyer purchases in Brantford, Brant County, and the surrounding region for years. We can help you:

• Review your Agreement of Purchase and Sale before you sign, with particular attention to rebate assignment language and closing date triggers;

• Confirm your eligibility for both the federal FTHB GST/HST Rebate and the Ontario enhanced HST rebate before you commit;

• Structure title and closing documents to preserve your rebate entitlement;

• Prepare and submit rebate applications to the CRA where the rebate is claimed after closing;

• Advise builders and developers on rebate crediting mechanics under the new rules.

  
  

Planning a new home or pre-construction purchase?

Speak with a real estate lawyer before you sign — not after. We offer fixed-fee closings for residential purchasers and can review your Agreement of Purchase and Sale in advance.

Culp & Massey Law Office

325 West Street, Suite B200, Brantford, ON N3R 3V6

519-759-0082

realestate@culpmassey.com

This post is provided for general information only and is not legal, tax, or accounting advice. The federal First-Time Home Buyers' GST/HST Rebate is in effect as of March 12, 2026. The Ontario enhanced HST rebate announced in the 2026 Ontario Budget is subject to federal regulatory amendments to the Excise Tax Act (Canada), and final claim mechanics may be updated. Every property transaction is different. Please consult a real estate lawyer and, where appropriate, an accountant, before relying on any rebate program in the context of a specific purchase.

Sources: Canada Revenue Agency – First-time home buyers' (FTHB) GST/HST rebate (canada.ca); Canadian Home Builders' Association – GST relief for first-time home buyers now in effect (March 13, 2026); Government of Ontario 2026 Budget – Enhanced HST rebate (budget.ontario.ca/2026/hst.html); CBC News – Ontario planning to remove HST on new homes for 1 year (March 25, 2026); Osler, Hoskin & Harcourt LLP – Ontario's new HST rebate: key details; Aird & Berlis LLP – 2026 Ontario Budget: Enhanced HST Relief on New Homes; MNP – First-time Home Buyers' GST rebate receives Royal Assent.