Ontario's HST Rebate on New Homes: What Buyers Need to Know in 2026

Bayview Wasaga | Wasaga Beach, Ontario

Buying a brand-new home in Ontario usually means paying 13% HST on top of the purchase price: 5% federal and 8% provincial. On a pre-construction townhome, that adds up quickly. In 2026, Ontario temporarily expanded its relief so that many buyers can recover most or all of that tax. This guide explains how the current rebate works, who qualifies, how much it could be worth and the timing rules that matter most before you sign. It reflects the rules as of October 2026.

What Changed in 2026

On March 25, 2026, the Ontario government announced a temporary enhancement to its HST relief for new homes, with the federal government agreeing to partner on the federal portion. The result is a combination of two measures:

• The Ontario enhanced new housing rebate (ENHR): Relief of the 8% provincial portion of the HST, worth up to $80,000.

• The Ontario new home affordability payment (ONHAP): A payment of up to $50,000, equal to up to 100% of the 5% federal portion of the HST, administered by the Province of Ontario.

Together, they can total up to $130,000 for eligible buyers. Unlike the federal first-time home buyers' rebate, the Ontario enhanced rebate is open to all eligible purchasers, not only first-time buyers.

How Much Could You Save?

The provincial relief depends on the value of the home:

• Up to $1 million: A full rebate of the 8% provincial portion of the HST, up to a maximum of $80,000.

• Above $1 million and up to $1.5 million: A flat $80,000 rebate.

• Above $1.5 million and below $1.85 million: A partial rebate that declines as the price rises.

• $1.85 million and above: No enhanced rebate. Only the existing Ontario new housing rebate of up to $24,000 is available.

A Simple Illustration

Say a buyer signs an agreement for a new home priced at $700,000. The full 13% HST would be $91,000. For an eligible buyer, the enhanced Ontario rebate can cover the 8% provincial portion ($56,000), and the ONHAP can cover the 5% federal portion ($35,000), which together offset the full amount. This is a simplified example for illustration only. Your actual entitlement depends on your price, your eligibility and any federal rebates you also qualify for, so confirm the numbers with your lawyer or tax advisor.

Who Qualifies?

The Ontario enhanced rebate generally follows the same eligibility conditions as the existing Ontario new housing rebate, plus some additional rules. For a home bought from a builder, the main requirements are:

• Primary residence: The home must be for use as your primary place of residence or that of a relation, such as a parent, child or sibling. A seasonal home or an investment property would not generally qualify.

• Home type: It applies to a single unit residential complex or a residential condominium unit bought from a builder. Townhomes count as single unit residential complexes in many cases, but the details matter, so check with your lawyer.

• Timing of the agreement: The agreement of purchase and sale must be entered into on or after April 1, 2026, and on or before March 31, 2027.

• Price: The total consideration must be less than $1.85 million.

• Construction timelines: Construction must begin on or before December 31, 2028, and be substantially completed on or before December 31, 2031.

Interaction With the Federal First-Time Home Buyers' Rebate

If you are a first-time buyer, the federal first-time home buyers' GST/HST rebate also applies to the 5% federal portion on eligible homes. In that case, you claim the federal rebate first, and the ONHAP can cover any part of the federal HST the federal rebate doesn't. The total of all rebates for the 8% provincial portion cannot exceed the lesser of $80,000 and the provincial HST actually payable. Because these programs overlap, it's worth asking your lawyer to confirm which combination applies to you.

How the Rebate Is Claimed

For a home bought from a builder, the builder can pay or credit the rebate to you, much like other new housing rebates, often as a credit on closing. Both the buyer and the builder must confirm that the buyer is eligible, because both can be responsible for repaying the rebate if it was claimed in error.

The rebate is applied for with Form GST190 and the Ontario rebate schedule, Form RC7190-ON. For the ONHAP, you don't file a separate application. Instead, you complete the consent-to-share-information section of the GST190 so the Canada Revenue Agency can pass the relevant information to the Province, which issues the payment separately.

Timing Rules That Catch Buyers Out

• The signing window matters. The rebate is tied to when the agreement of purchase and sale was signed, not when you close.

• Older agreements don't qualify. If you signed an agreement before April 1, 2026, and it is later amended or assigned, it is still treated as signed before that date, so the enhanced rebate wouldn't apply.

• Assignments need both dates in the window. For an assignment sale, both the original agreement and the assignment agreement must be entered into within the April 1, 2026 to March 31, 2027 period.

• Cancelling and re-signing may not work. If you terminate an earlier agreement and sign a new one for the same or another home, the new agreement can be treated as signed before April 2026 in some situations.

What This Means for Pre-Construction Buyers in Wasaga Beach

Wasaga Beach attracts both full-time residents and second-home buyers, and the primary-residence requirement is the single most important point for the second group. If you plan to live in the home full time, or a close relation will, the rebate could make a significant difference to your costs. If you're buying a seasonal or investment property, assume it won't qualify unless your lawyer or tax advisor confirms otherwise.

If you're considering The Residences at Bayview, ask the sales team how the rebate is handled in the agreement of purchase and sale, and confirm your eligibility with your lawyer or tax advisor before you sign.

Questions to Ask Before You Sign

• Will the builder credit the rebate to me on closing, or will I need to claim it myself?

• Does the home's price and type fit within the rebate's limits?

• Will the home be my primary residence, or that of a close relation?

• Does my agreement of purchase and sale fall within the April 1, 2026 to March 31, 2027 window?

• How do the federal first-time home buyers' rebate and the ONHAP apply to me?

Ready to Learn More?

Explore The Residences at Bayview floor plans and location, or register to receive updates on pricing and availability. Register your interest or schedule a viewing to learn more.

This article is general information only and is not tax, legal or financial advice. Rebate rules can change, so confirm current details and your eligibility with a qualified lawyer or tax professional.

Sources: Canada Revenue Agency, GST/HST Notice 346, Ontario Enhanced New Housing Rebate (August 2026); Government of Ontario, 2026 Ontario Budget; Government of Ontario news release, March 25, 2026.

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