The short version
Ontario is temporarily removing the full 13% HST, up to $130,000, on new homes priced up to $1 million. The $130,000 maximum holds all the way to $1.5 million, with a reduced amount up to $1.85 million. Unlike earlier rebates, you don’t need to be a first-time buyer, and homes bought as a residential rental property qualify too.
The catch is the deadline: the agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027, construction must start by December 31, 2028, and the home must be substantially complete by December 31, 2031.
How the relief is paid
The relief comes in two pieces that together equal the full 13% HST:
- Ontario Enhanced New Housing Rebate (ENHR): the 8% provincial portion, up to $80,000, administered by the CRA. Rental buyers use the parallel Enhanced New Residential Rental Property Rebate.
- Ontario New Home Affordability Payment (ONHAP): the equivalent of the 5% federal portion, up to $50,000, paid by Ontario. It is reduced by any federal First-Time Home Buyers’ GST rebate you also claim, so you can’t collect the federal 5% twice.
Most Ontario builders quote prices with HST included and take your existing new-housing rebates as a credit at closing. How the enhanced relief flows through depends on your agreement: some builders will credit it, and in other cases you apply yourself. Have your real estate lawyer review the HST and rebate clauses before your cooling-off or conditional period ends.
What it’s worth at Erin price points
| Purchase price (before HST) | 13% HST | Maximum relief |
|---|---|---|
| $599,000 | $77,870 | $77,870 |
| $749,000 | $97,370 | $97,370 |
| $899,000 | $116,870 | $116,870 |
| $1,000,000 | $130,000 | $130,000 |
| $1,250,000 | $162,500 | $130,000 |
Illustrative. Actual relief depends on how the price is stated in your agreement, eligibility and final CRA/Ontario rules.
Investors: rental properties qualify
Earlier HST rebates required you to live in the home. The 2026 relief explicitly covers homes bought “as a residential rental property,” which changes the maths on a new Erin townhome or detached home bought to rent. On a $750,000 townhome the relief could approach $97,500, which can mean meaningfully lower carrying costs or a much shorter break-even.
Two cautions. The CRA was still finalising the rental-property rebate rules in October 2026, so confirm the current notice before you rely on it. And rebate programs usually require that the home actually be rented for a minimum period, so flipping the contract on assignment may disqualify you. See our assignment and anti-flipping guide.
First-time buyers: you have until 2030
First-time buyers already have two permanent-for-now rebates that run past March 2027:
- Federal First-Time Home Buyers’ GST rebate: up to $50,000 on new homes up to $1M, phasing out to $1.5M, on agreements signed from March 20, 2025 to the end of 2030.
- Ontario first-time buyer HST rebate: up to $80,000 (the full 8% provincial portion) on new homes up to $1M, phasing out to $1.5M, on agreements to December 31, 2030.
- Ontario land transfer tax refund: up to $4,000.
Combined with 30-year insured amortizations on new builds, these make Erin’s entry-level townhomes among the most accessible new freehold homes within commuting distance of the GTA. More on our first-time buyer page.
How to make the deadline work for you
- Register early. Builders give VIP registrants first access to price lists and lots, which matters when everyone is racing the same deadline. Join the Erin VIP list.
- Get pre-approved so you can sign quickly and meet the deposit schedule.
- Confirm the construction start. The home must start construction by December 31, 2028; ask the builder how firm their schedule is.
- Read the HST clause with a lawyer who does new-build closings.
- Keep your paperwork (agreement date, occupancy and rental records) for the rebate application.
Frequently asked questions
Do investors qualify for Ontario’s 2026 HST relief on new homes?
Yes. Ontario’s temporary relief applies to new homes bought as a primary residence or as a residential rental property, on agreements signed April 1, 2026 to March 31, 2027. Final rental rebate rules come from the CRA, so confirm current requirements before signing.
Can I combine the federal first-time buyer GST rebate with Ontario’s HST relief?
Partly. The Ontario New Home Affordability Payment covers the federal 5% portion and is reduced by any federal First-Time Home Buyers’ GST rebate claimed, so the combined relief tops out at the full 13% HST (up to $130,000).
What is the deadline for Ontario’s $130,000 HST relief?
The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. Construction must begin by December 31, 2028 and the home must be substantially complete by December 31, 2031.
This guide is general information, current to October 5, 2026, and is not legal, tax or financial advice. Programs and rules change; confirm with your lawyer, accountant, lender or the CRA before acting.
