Ontario Just Made Buying a New Home Much More Affordable

If you’ve been following Ontario’s housing market, you’ve probably heard about the province’s new Enhanced New Housing Rebate.

At first glance, it may sound like a brand-new program.

It isn’t.

Ontario has always offered an HST rebate on newly built homes. What’s new is that the government has temporarily expanded the rebate—working alongside the federal government—to increase the maximum combined HST relief from $24,000 to as much as $130,000 for eligible buyers.  

Here’s exactly what’s changed.

Before: Maximum Rebate Was $24,000

Under the previous rules, buyers could recover up to $24,000 of the provincial portion of HST.

While the rebate remained available regardless of the home’s value (provided other eligibility requirements were met), the maximum provincial benefit never exceeded $24,000.  

Now: Up to $130,000 in Combined HST Relief

For a limited time, Ontario has significantly expanded the rebate.

Eligible buyers can now receive:

• Up to $80,000 through the enhanced Ontario rebate (covering the provincial 8% portion of HST), plus
• Up to $50,000 through Ontario’s additional relief equivalent to the federal 5% portion.

Together, that’s a maximum rebate of $130,000.  

This is one of the largest temporary housing tax incentives Ontario has ever introduced.

How Much Can You Receive?

Homes priced up to

$1 million

Eligible buyers can recover the full 13% HST, up to a maximum of $130,000.  

Homes between

$1 million and $1.5 million

The maximum rebate remains $130,000.

Although the full HST is no longer completely eliminated on these higher-priced homes, buyers can still receive the full maximum rebate.  

Homes between

$1.5 million and $1.85 million

The rebate begins to phase down gradually.

As the purchase price increases, the rebate decreases until it reaches the existing rebate amount.  

Homes above

$1.85 million

These homes do not qualify for the enhanced rebate.

Instead, buyers continue under the previous Ontario rebate rules, with a maximum provincial rebate of $24,000.  

Who Qualifies?

The enhanced rebate generally applies if:

• You purchase a newly built or substantially renovated home.
• The Agreement of Purchase and Sale is signed between April 1, 2026 and March 31, 2027.
• The home will be your primary residence.
• You satisfy the existing eligibility requirements under Ontario’s New Housing Rebate program.  

One important point: this rebate is not limited to first-time home buyers. Unlike some federal programs, eligible repeat buyers can also qualify.  

Why This Matters

For years, the Ontario rebate was effectively capped at $24,000, even as new home prices continued to rise.

This temporary enhancement dramatically changes the equation.

For buyers considering a newly built home or pre-construction property, the savings could reduce:

• Closing costs
• Mortgage financing
• Overall purchase cost

In some cases, the tax savings alone could equal a substantial portion of a buyer’s down payment.  

Final Thoughts

The biggest takeaway isn’t that Ontario created a new rebate.

It’s that the province expanded an existing program, increasing the potential combined HST relief from $24,000 to as much as $130,000 for eligible purchases during a limited one-year window.  

If you’re planning to buy a newly built home, understanding when you sign your purchase agreement and whether your property qualifies could make a six-figure difference in your total cost.