Ontario’s new-home rebate landscape changed materially in 2026. A buyer may now need to consider the existing GST/HST new housing rebate, the federal first-time home buyers’ rebate, the existing Ontario new housing rebate and a temporary Ontario enhanced rebate. The correct result depends on the agreement date, purchase price or fair market value, construction timeline, occupancy and whether the property will be a primary residence or a rental.
Our CPAs review the legal agreement, statement of adjustments, HST clause, occupancy facts and filing deadlines before calculating a claim. That review is important because a rebate credited by the builder is not automatically final: the purchaser must still satisfy the statutory conditions.
Current as of August 2026: The rules and forms below reflect the latest CRA guidance available when this article was updated. Housing rebates are highly fact-specific. Confirm eligibility before signing, assigning a rebate or changing the property’s intended use.
The four Ontario rebate regimes buyers should distinguish
1. Existing GST/HST new housing rebate
The existing rebate allows an individual to recover some of the GST, or federal part of the HST, paid on a new or substantially renovated home used as the individual’s or a relation’s primary place of residence, provided all other conditions are met. It can apply to:
- a new or substantially renovated house or condominium purchased from a builder;
- a qualifying co-operative housing share;
- a mobile, modular or floating home;
- a home constructed by or for the owner; and
- a qualifying substantial renovation or conversion from non-residential use.
The federal rebate is income- and price-independent but is subject to value thresholds and phase-out calculations. It is not available to a corporation or partnership. The CRA’s GST/HST new housing rebate overview explains the qualifying situations.
2. Existing Ontario new housing rebate
Ontario provides a rebate for part of the 8% provincial component of the HST. For a qualifying home purchased from a builder, the maximum existing Ontario rebate is generally $24,000. It may remain available even where the federal portion is unavailable solely because the home’s value exceeds the federal threshold, provided the other conditions are met.
This Ontario relief is still relevant in 2026, but it must now be considered alongside the temporary enhanced Ontario measures described below.
3. Federal first-time home buyers’ GST/HST rebate
The federal first-time home buyers’ rebate is now available. It generally provides:
- 100% of the GST or federal part of the HST on an eligible new home valued at up to $1 million, to a maximum rebate of $50,000;
- a gradually reduced rebate for an eligible home valued between $1 million and $1.5 million; and
- no federal first-time-buyer rebate at $1.5 million or more.
For a home purchased from a builder, the current CRA criteria generally require an agreement of purchase and sale entered into on or after March 20, 2025 and before 2031, together with the first-time-buyer, construction, primary-residence and first-occupancy conditions. At least one eligible purchaser must satisfy the first-time home buyer test.
Review the CRA’s current first-time home buyers’ GST/HST rebate and eligibility criteria.
4. Ontario enhanced new housing rebate
Ontario introduced a temporary enhanced new housing rebate for a limited 2026–2027 window. Together with the existing Ontario new housing rebate, it can provide combined relief of up to $80,000 of the 8% provincial HST on an eligible new or substantially renovated home valued up to $1.85 million.
For a purchase from a builder, the agreement generally must be entered into between April 1, 2026 and March 31, 2027. For an owner-built home, construction generally must begin during that same period. The home must satisfy the underlying primary-residence and other eligibility conditions.
An eligible individual may also qualify for other Ontario first-time-buyer relief. However, the total rebates for the 8% provincial part cannot exceed the lesser of $80,000 and the provincial HST actually payable. See the CRA’s Ontario enhanced new housing rebate and Notice 346.
Primary-residence eligibility: intention must match the facts
The owner-occupied new housing rebates generally require the home to be acquired or built for use as the primary place of residence of the individual or a qualifying relation. The CRA may examine objective evidence, including:
- where the purchaser and family actually live;
- the timing and length of occupancy;
- mailing address, identification, utilities and insurance;
- financing and representations made to the lender or builder;
- whether the property was listed for sale or lease;
- the purchaser’s other residences; and
- the agreement and communications showing intention at the time of purchase.
A short period of occupancy does not automatically establish eligibility if the surrounding evidence indicates resale or rental was intended from the outset. Conversely, a genuine and documented change in circumstances after closing must be distinguished from the original intention.
Builder-credited rebate versus a direct CRA application
Many purchase agreements show a price that assumes the buyer will assign or transfer the rebate benefit to the builder. At closing, the builder may credit the eligible rebate against the amount payable and submit the jointly completed application.
Before signing an assignment or certification, purchasers should verify:
- which federal and Ontario rebates are included in the advertised price;
- whether the purchase price is “net of rebate” or HST-inclusive;
- the purchaser and relation who will occupy the home;
- whether every registered purchaser satisfies the required conditions;
- what happens if the CRA later denies or reduces the rebate; and
- whether the builder can charge the denied amount, interest or legal costs back to the purchaser.
If the builder does not credit the rebate, an eligible buyer can generally apply directly to the CRA. The fact that a builder declines to credit a claim does not by itself determine statutory eligibility.
Which forms may be required?
Home purchased from a builder
- Form GST190 — GST/HST New Housing Rebate Application for Houses Purchased from a Builder
- Form RC7190-ON — GST190 Ontario Rebate Schedule
Owner-built or substantially renovated home
- Form GST191 — GST/HST New Housing Rebate Application for Owner-Built Houses
- Form GST191-WS — Construction Summary Worksheet
- Form RC7191-ON — GST191 Ontario Rebate Schedule
The current GST190 page confirms that the form includes the Ontario enhanced rebate. The CRA indicated that applications including the Ontario enhanced rebate would begin processing in fall 2026 after system changes.
Do not miss the filing deadline
The deadline depends on the type of claim. For many builder-purchased and first-time-buyer claims, the application is generally due within two years after ownership transfers. Owner-built and substantial-renovation claims use a statutory base date tied to substantial completion and first occupancy, followed by a two-year filing period.
Because the calculation can depend on several dates, do not rely on the closing date alone. The CRA’s Guide RC4028 contains the detailed timing rules and examples.
Rental property? Use a different rebate analysis
A property acquired for long-term rental is generally not eligible for the owner-occupied new housing rebate. It may instead qualify for the GST/HST new residential rental property rebate. That regime uses different eligibility, valuation, occupancy and filing rules and generally requires Form GST524 and the applicable Ontario schedule.
Purpose-built rental housing may be eligible for enhanced relief where the construction and completion conditions are satisfied. A single condominium purchased as an investment should not be assumed to qualify for the purpose-built rental enhancement.
Common reasons a rebate is delayed, reduced or denied
- the purchaser was not an individual or did not meet the first-time-buyer test;
- a person on title did not satisfy the required occupancy or relationship condition;
- the agreement or construction date fell outside a qualifying window;
- the home was intended for resale, assignment or rental;
- occupancy evidence was inconsistent with the application;
- the wrong rebate form or calculation method was used;
- supporting invoices did not identify the claimant or GST/HST paid;
- the claim was filed after the applicable deadline; or
- the buyer claimed overlapping relief beyond the tax actually payable.
Documents to retain
- agreement of purchase and sale and all amendments or assignments;
- statement of adjustments and proof of HST paid;
- closing documents, title and mortgage records;
- builder rebate schedules and signed certifications;
- construction contracts, permits, invoices and proof of payment;
- occupancy records, utilities, insurance and address changes;
- lease or resale documents if circumstances changed; and
- copies of every form, worksheet and CRA submission.
Frequently asked questions
Can a builder credit the 2026 rebates at closing?
Yes, where the applicable rules and forms permit it and the builder is satisfied that the purchaser is eligible. The purchaser remains responsible for the truth and completeness of the application.
Can I claim the owner-occupied rebate if I rent the property?
Normally no, if rental was the intended use. A separate new residential rental property rebate may apply. The correct treatment depends on the intention and facts at the relevant time.
Does every first-time buyer receive $50,000?
No. The federal first-time-buyer rebate is limited to the GST or federal HST actually payable and is phased down for eligible homes between $1 million and $1.5 million. Other eligibility conditions must also be met.
Is the Ontario enhanced rebate permanent?
No. It is a temporary measure generally tied to builder agreements entered into, or owner-built construction beginning, from April 1, 2026 through March 31, 2027.
Can I apply after the builder refused the credit?
Potentially. Builder crediting and statutory eligibility are separate questions. A direct CRA application may be available, but the legal agreement, facts and deadline should be reviewed first.
How our CPAs can help
Our CPA team assists buyers, builders, investors and families with eligibility reviews, rebate calculations, supporting schedules, direct CRA applications, rental-property rebate analysis and responses to CRA review letters. For complex ownership, trust, corporate or non-resident situations, we coordinate with legal and other independent specialists where required.
Book an introductory call before closing, changing the property’s use or responding to a CRA rebate review.
This article provides general information as of August 2026. It is not legal or tax advice. Eligibility depends on the complete facts, transaction documents and law in force on the relevant dates.