Ontario’s Enhanced New Housing Rebate: What Home Buyers Need to Know

If you’re thinking about buying a brand-new home in Ontario, there is a new rebate that could make a significant difference in the amount of HST you pay.

The Ontario Enhanced New Housing Rebate (ENHR) was introduced to provide additional relief on the provincial portion of HST for eligible new homes and substantially renovated homes.

The rebate can provide up to $80,000 in relief, depending on the value of the home and whether you meet the eligibility requirements.

Here’s what you need to know in simple terms.

What Is the Ontario Enhanced New Housing Rebate?

When you purchase a new home in Ontario, HST applies to the purchase.

The Ontario Enhanced New Housing Rebate is designed to return some or all of the 8% provincial portion of the HST on an eligible new home.

When combined with the existing Ontario New Housing Rebate, eligible buyers may receive up to $80,000 in relief on the provincial portion of the HST.

There is also a separate Ontario New Home Affordability Payment (ONHAP) that may provide eligible buyers with up to $50,000 toward the federal portion of the HST.

That means there may be substantial assistance available to qualified buyers of eligible new homes.

How Much Could You Receive?

The amount of the Ontario Enhanced New Housing Rebate depends on the price of the home.

Here’s the basic breakdown:

Home valued up to $1 million

You may receive the full provincial rebate, up to a maximum of $80,000.

Home valued above $1 million and up to $1.5 million

The rebate is a flat $80,000.

Home valued above $1.5 million and below $1.85 million

The rebate is reduced and is based on the provincial portion of the HST paid.

Home valued at $1.85 million or more

The enhanced rebate is not available. The existing Ontario New Housing Rebate of up to $24,000 may still be available if you qualify.

Who Can Qualify?

The rebate is generally intended for people purchasing or building a home to use as their primary place of residence.

For example, the rebate may be available if you:

• Buy a new home from a builder

• Buy a new residential condominium

• Build your own new home

• Substantially renovate a home

• Purchase certain eligible co-op housing

The home must generally be used as your primary residence or the primary residence of a qualifying relation.

This is important because the enhanced rebate is not simply a rebate that applies to every new home purchase. There are specific eligibility requirements.

What Are the Important Dates?

Timing matters.

For a home purchased from a builder, the agreement of purchase and sale generally needs to be entered into on or after April 1, 2026, and on or before March 31, 2027.

There are also requirements regarding when construction begins, when the home is substantially completed and when the HST becomes payable.

For example, for homes purchased from a builder, construction or substantial renovation must begin on or before December 31, 2028, and the home must generally be substantially completed on or before December 31, 2031.

Because the rules can depend on the details of the purchase, it is important to look at the specific agreement and timeline.

What About the $50,000 Ontario New Home Affordability Payment?

The Ontario Enhanced New Housing Rebate is not the only program that may be available.

The Ontario New Home Affordability Payment (ONHAP) may provide eligible buyers with up to $50,000 toward the federal portion of HST.

The amount is based on up to 100% of the 5% federal portion of the HST, but there are rules that can reduce the amount depending on other federal GST/HST rebates the buyer qualifies for.

The ONHAP is administered by the Province of Ontario separately from the enhanced housing rebate.

Do You Have to Apply Yourself?

Not necessarily.

For a home purchased from a builder, the builder may pay or credit the applicable rebate to the purchaser.

If the builder does not pay or credit the rebate, the purchaser can apply for the applicable rebate using the required CRA forms.

For people building or substantially renovating their own home, there are separate application forms and requirements.

One Important Thing to Remember

The Ontario Enhanced New Housing Rebate has several conditions, and the rules can be different depending on whether you are buying from a builder, building your own home, purchasing a condo or dealing with another type of transaction.

There are also special rules for situations such as assignment sales, changes to an existing agreement and entering into a new agreement after an earlier agreement was terminated.

So, if you're considering a new construction purchase, don't assume that you automatically qualify based on the purchase price alone.

Thinking About Buying a New Home?

For buyers considering a new build in Ontario, these rebates could make a meaningful difference to the overall cost of the purchase.

The important part is understanding whether you qualify, how much you may be entitled to and how the rebate will be handled in your purchase agreement.

The CRA's August 2026 notice provides the current information about the Ontario Enhanced New Housing Rebate, but it also notes that the publication does not replace the legislation and may not reflect later legislative changes.

If you're considering buying a new home and want to understand how the numbers may affect your purchase, we're happy to help you navigate the real estate side of the process and point you toward the appropriate resources for the tax questions.

Thinking about buying new? Let's talk about what options might make sense for you.

Government of Canada Ontario Enhanced New Housing Rebate