Ontario’s new-home market is entering an important period of change. Buyers who plan to purchase a newly built home or condominium may have access to substantial HST relief, but the timing of their purchase could make a significant difference.

Under Ontario’s temporary Enhanced New Housing Rebate program, eligible purchasers may receive up to $80,000 in provincial HST relief. When combined with the Ontario New Home Affordability Payment (ONHAP), total potential HST relief can reach $130,000.

However, this enhanced relief has a limited eligibility period. For qualifying purchases from a builder, the agreement of purchase and sale must generally be signed between April 1, 2026, and March 31, 2027.

At the same time, Ontario is proceeding with plans to eliminate its existing New Housing Rebate and New Residential Rental Property Rebate, which currently provide up to $24,000 in provincial HST relief.

For buyers considering a new condominium, townhouse, or detached home, understanding these changes is essential. The difference between purchasing before and after the deadline could be substantial.

What Is Changing With Ontario’s New Home HST Rebate?

Ontario currently has several HST relief programs for eligible new-home purchases. These programs have different eligibility requirements, rebate amounts, and deadlines.

The most important changes involve two separate measures.

1. Elimination of the Existing Ontario New Housing Rebate

The existing Ontario New Housing Rebate provides eligible buyers with relief equal to 75% of the provincial portion of HST on the first $400,000 of a qualifying new home purchase, up to a maximum of $24,000.

Ontario plans to eliminate this rebate for new purchases and transactions that generally begin on or after April 1, 2027.

2. Temporary Enhanced New Housing Rebate

Ontario has also introduced a temporary enhanced rebate to reduce the cost of purchasing a newly constructed home.

Eligible purchasers can receive up to $80,000 in provincial HST relief through the Enhanced New Housing Rebate (ENHR).

In addition, eligible purchasers may qualify for the Ontario New Home Affordability Payment, which provides up to another $50,000 in relief.

Together, these programs can provide up to $130,000 in combined HST relief.

The enhanced program generally applies to qualifying agreements signed between April 1, 2026, and March 31, 2027.

How Much HST Rebate Can New-Home Buyers Receive?

The amount of HST relief depends on the purchase price of the home and the buyer’s eligibility.

Under the temporary enhanced program, the potential combined relief is structured as follows:

These figures illustrate the potential combined relief from the provincial enhanced rebate and the Ontario New Home Affordability Payment.

The maximum combined relief is available for eligible homes valued up to $1.5 million. Above that amount, the enhanced relief decreases until the $1.85 million threshold.

Homes valued at $1.85 million or more are generally not eligible for the enhanced provincial rebate. The existing Ontario New Housing Rebate of up to $24,000 may still apply.

Important: These figures are illustrative. Actual rebate amounts depend on the applicable HST, eligibility conditions, and any other federal or provincial rebate available to the purchaser. First-time homebuyer programs can also change the calculation.

What Happens After March 31, 2027?

April 1, 2027, is an important date for Ontario’s new-home market.

For qualifying new transactions beginning on or after this date, the existing provincial New Housing Rebate and New Residential Rental Property Rebate will generally no longer be available.

The temporary enhanced rebate also has an eligibility period that ends on March 31, 2027.

This means buyers who sign a qualifying agreement before the deadline may receive substantially more relief than buyers who enter into a new agreement after it.

Consider a few examples:

• A buyer purchasing a qualifying $500,000 new home could receive approximately $65,000 in combined relief under the enhanced program.
• A buyer purchasing a qualifying $1 million home could receive up to $130,000.
• A buyer purchasing a qualifying $1.5 million home could also receive up to $130,000.
• A buyer entering into a new agreement after March 31, 2027, would generally no longer qualify for the temporary enhanced program or the existing $24,000 provincial rebate.

The separate first-time homebuyer provisions must also be considered. Eligible first-time buyers may qualify for different relief after the enhanced program ends.

Who Qualifies for the Enhanced New Housing Rebate?

The Ontario Enhanced New Housing Rebate is not limited to first-time homebuyers.

Eligible individuals may qualify when purchasing a new or substantially renovated home for use as their own primary residence or the primary residence of a qualifying relation.

Eligible property types can include:

• Newly constructed detached homes.
• Semi-detached homes.
• Freehold townhomes.
• Newly constructed condominium units.
• Eligible cooperative housing units.

The program also covers certain owner-built homes and substantial renovations.

For purchases from a builder, the main conditions generally include:

• The purchase agreement must be signed between April 1, 2026, and March 31, 2027.
• The home must be acquired for use as the purchaser’s or a qualifying relation’s primary residence.
• The total purchase consideration must be below $1.85 million.
• Construction must begin on or before December 31, 2028.
• Construction must be substantially completed on or before December 31, 2031.
• The applicable HST must become payable on or before December 31, 2032.

Meeting the purchase-date requirement alone does not guarantee eligibility. All other conditions must also be satisfied.

What About First-Time Homebuyers?

First-time homebuyers may have access to additional HST relief.

Ontario has separate first-time homebuyer provisions. The federal government also has a first-time homebuyer GST/HST rebate.

These programs have their own eligibility requirements.

An important distinction is that the temporary Ontario Enhanced New Housing Rebate is available to qualifying purchasers who are not necessarily first-time buyers.

Eligible first-time buyers may also qualify for additional relief, subject to the applicable rules.

The Ontario New Home Affordability Payment is reduced by the federal portion of any GST/HST new housing rebate or first-time homebuyer rebate to which the purchaser is entitled.

As a result, buyers should not assume that every rebate can simply be added together without adjustment.

What About Assignment Sales?

Assignment sales require special attention.

Under the CRA rules, an assignee may qualify for the Ontario Enhanced New Housing Rebate only when both the original agreement of purchase and sale and the assignment agreement were entered into between April 1, 2026, and March 31, 2027.

All other eligibility requirements must also be met.

There are additional restrictions for agreements signed before April 1, 2026, that are later changed, assigned, or terminated and replaced with new agreements.

In some situations, a new agreement may be treated as having been signed before April 1, 2026, which can prevent the purchaser from qualifying for the enhanced rebate.

Anyone considering an assignment purchase should review the original agreement, assignment agreement, and applicable tax conditions before proceeding.

Should You Buy Before April 1, 2027?

For buyers already considering a new construction property, the deadline deserves serious attention.

The potential difference in HST relief can be significant.

For example, a qualifying buyer purchasing a $1 million new home during the enhanced rebate period may receive up to $130,000 in combined provincial relief.

A buyer entering into a new agreement after March 31, 2027, will generally not have access to the same temporary relief.

However, a tax incentive should not be the only reason to purchase a property.

Buyers should also consider:

• The purchase price and current market value.
• The builder’s financial position and project status.
• The deposit structure and payment schedule.
• Expected occupancy and closing dates.
• Mortgage qualification and carrying costs.
• The property’s location and long-term suitability.
• The exact HST treatment in the agreement of purchase and sale.

A rebate can reduce the effective purchase cost, but it does not automatically make an overpriced or unsuitable property a good investment.

The agreement should also clearly explain how the builder applies the applicable rebates and what happens if the purchaser is not eligible.

What Should Buyers Do Before the Deadline?

Buyers who plan to purchase a new home in Ontario should take the following steps:

1. Review new-home opportunities early.

Compare available condominiums, townhomes, and detached homes. Do not wait until the final weeks of March 2027 to start the process.

2. Confirm the purchase price and rebate eligibility.

The purchase price affects the amount of available relief. Verify the property’s value and the applicable rebate calculations.

3. Review the purchase agreement.

The agreement date is important. A reservation, expression of interest, or initial deposit should not be assumed to satisfy the CRA’s purchase-agreement requirements.

4. Confirm how the builder applies the rebate.

Some builders may pay or credit eligible rebates directly against the purchase price. Others may require the purchaser to apply through the CRA.

5. Get professional advice.

A real estate lawyer and qualified tax professional should review the transaction, particularly where assignment sales, multiple purchasers, or first-time buyer provisions are involved.

The Bottom Line: The March 31, 2027 Deadline Matters

Ontario’s changes to its new-home HST rebate programs create an important opportunity for eligible buyers.

The temporary Enhanced New Housing Rebate and Ontario New Home Affordability Payment can provide up to $130,000 in combined HST relief on qualifying new homes.

However, the enhanced program generally requires a qualifying agreement of purchase and sale to be signed no later than March 31, 2027.

After that date, the existing provincial New Housing Rebate of up to $24,000 is also generally scheduled to disappear for new transactions, subject to separate first-time homebuyer provisions and applicable transitional rules.

For anyone considering a new condominium, townhouse, or detached home in Ontario, understanding the deadline and the eligibility requirements could make a substantial difference to the total cost of purchasing a property.

Looking for a New Home in Ontario?

Home Leader Realty can help buyers explore available pre-construction and newly built properties across the Greater Toronto Area.

Visit HomeLeaderRealty.com or call 416-599-9599 to explore available opportunities.

Important Disclaimer

This article provides general information about Ontario’s HST rebate programs as of November 2026. Rebate amounts, eligibility, and transitional provisions depend on the specific transaction and applicable federal and provincial rules. This content is not tax or legal advice. Buyers should consult the Canada Revenue Agency, a qualified tax professional, and their real estate lawyer before making a purchase decision.