HST Rebates on a New Home in Ontario: Federal and Ontario Rebates at Closing

Buying a new home from a builder usually means HST on the price. That tax can be large, which is why the rebates matter. Two rebates may help: a federal rebate for first-time buyers of new homes and an Ontario rebate on the 8% provincial part of HST.

This article explains who qualifies, how the price of the home changes the amount, and what else shows up in the builder's closing paperwork. It does not repeat general advice on budgeting for closing costs on a new build.

The federal First-time Home Buyers' GST/HST rebate

This rebate can return up to 100% of the GST, or the federal part of the HST, on a new home, to a maximum of $50,000. It applies to agreements signed on or after March 20, 2025 and before 2031.

The amount depends on the price. The rebate is full for homes up to $1 million, reduced between $1 million and $1.5 million, and nil at $1.5 million or more.

Who qualifies for the federal rebate

The buyer must be 18 or older, a citizen or permanent resident, and the first occupant of the home, using it as a primary residence.

• Check your age and status on the date the rules apply to you.
• Plan to be the first person to live in the home, not a tenant or later owner.
• Plan to use it as your primary residence, not as an investment or vacation property.
• If you are buying with someone else, ask a lawyer how the rules apply to the two of you.

The Ontario Enhanced New Housing Rebate

For new homes bought from a builder, with the agreement signed between April 1, 2026 and March 31, 2027, the Ontario Enhanced New Housing Rebate (ENHR) applies. Together with the Ontario new housing rebate, it refunds up to $80,000 of the 8% provincial part of HST.

The rebate is time-limited. An agreement signed outside that window does not get the enhanced rebate, so the signing date matters.

How the rebates fit into closing

HST paid on the purchase price is not part of the value of the consideration used to calculate land transfer tax. How the rebates are credited to you at closing depends on your situation and your builder's paperwork, so it is worth confirming with a lawyer.

Builders often pass the Tarion enrolment fee to buyers in the statement of adjustments. From September 1, 2025 the fee schedule includes a $55-per-home adjustment, the average fee is $1,790, and there is no change for homes priced at $550,000 or below.

Whether the builder may charge you this fee, or other adjustments such as development charges or utility hook-ups, depends on your agreement of purchase and sale and the Tarion Addendum. Read those documents closely before closing.

What to do before you close

The Ontario rebate is time-limited, so the signing date of your agreement matters. Check the current CRA guidance on the rebates before closing, and ask the builder how they will be credited to you.

• Find the date you signed the agreement and confirm which rebates that date allows.
• Confirm the price used for the rebate thresholds.
• Ask the builder in writing whether the price includes the rebates or whether they will be credited on closing.
• Review the statement of adjustments for the Tarion enrolment fee and any other charges.
• Have a lawyer review the agreement and the Tarion Addendum before you sign anything further.
• Confirm with a lawyer or accountant that you meet the occupancy and residency conditions.

Frequently asked questions