Ontario has made one of the biggest changes to new-home taxes in years, and it's the question we're asked most often right now. Below are the answers we give buyers, in the order people usually ask them. Everything here is based on what the CRA and the Government of Ontario have published.
How much can I actually save?
On an eligible new home, the relief can cover the full 13% HST, up to $130,000. It comes in two parts:
- The Ontario Enhanced New Housing Rebate (ENHR) covers the 8% provincial portion, up to $80,000. The CRA runs it.
- The Ontario New Home Affordability Payment (ONHAP) gives relief equal to the 5% federal portion, up to $50,000. The Province runs it, with federal funding confirmed when Bill C-26 received Royal Assent in June 2026.
How much you get depends on the price of the home (or its fair market value, for rentals):
| Home price | Relief available |
|---|---|
| Up to $1 million | The full 13% HST, to a maximum of $130,000 |
| $1 million to $1.5 million | A flat $80,000 + $50,000 = $130,000 |
| $1.5 million to $1.85 million | Both amounts gradually reduced |
| $1.85 million and above | No enhanced relief; only the existing Ontario rebate of up to $24,000 |
Is it only for first-time buyers?
No, and this surprises a lot of people. There are two streams:
If you'll live in the home. Individuals buying a new home from a builder as their own primary residence, or that of a relation, may qualify for both the ENHR and the ONHAP. You or your relation must be the first to occupy it.
If you'll rent it out long-term. Landlords may qualify for the Ontario Enhanced New Residential Rental Property (ENRRP) rebate, and Ontario confirms they may also be eligible for the ONHAP. Short-term rentals are excluded, according to Ontario's 2026 Budget.
First-time buyers still claim the federal first-time home buyers' GST/HST rebate first. The CRA says the ONHAP is reduced by any federal rebate you receive, so the programs don't stack beyond the limits.
What are the deadlines?
This is where the two streams really differ.
| Home you'll live in | Long-term rental | |
|---|---|---|
| Key window | Agreement signed April 1, 2026 to March 31, 2027 | Construction begins April 1, 2026 to March 31, 2027* |
| Construction start | On or before December 31, 2028 | Within the window above |
| Completion | On or before December 31, 2031 | By December 31, 2029 |
*According to the CRA, the rental rebate also covers certain housing purchased during that period if construction began earlier.
If you're investing, the rental window is tighter and tied to when construction starts, not when you sign. Ask about the build schedule before you commit.
How do I get the money?
If you're buying a home to live in, the CRA allows the builder to credit the provincial rebate to you at closing, so it shows up on your statement of adjustments and simply reduces what you pay. If that doesn't happen, you can apply to the CRA after closing. Ontario says the ONHAP doesn't need a separate application; it's claimed through the same CRA forms, and a builder that credits the relief can apply on your behalf.
One thing to plan for: in July 2026, the Ontario Home Builders' Association told its members that ONHAP payments were expected to begin in early 2027, with CRA processing taking about 120 days.
If you're buying to rent, you'll generally pay the HST at closing and then apply to the CRA using Form GST524. And a caution from the CRA: if you sell within a year of the home first being occupied, the buyer generally has to be buying it as their primary residence, or the rebate may have to be repaid.
Is this actually law now?
Yes. When Ontario announced the program in March 2026, the federal half still needed Ottawa to act. It has: federal regulations for Ontario's enhanced rebates were made on June 12, 2026 (P.C. 2026-610), deemed in force April 1, 2026, and Bill C-26 received Royal Assent on June 18, 2026. The CRA has said more detail on the rental rebate is expected by October 2026, so some fine print for investors may still change.
Does it apply to your homes?
All of our semi-detached bungalows, single-family homes and legal duplexes in Cornwall and Long Sault are new construction, so they may fall within these programs. Whether a specific home qualifies depends on when you sign, when it's built, how you'll use it and what it costs.
Legal duplexes are a special case worth raising with an HST professional. Because there are two self-contained units, how the rebates apply can depend on how each unit is used: living in one and renting the other is treated differently from renting both.
The agreement window closes on March 31, 2027. If you'd like to talk through timing on one of our available homes, get in touch and we'll get back to you within one business day.
Please note: This article is general information only, current as of September 27, 2026. It is not legal, tax or financial advice, and program rules can change. Details for the rental stream in particular may be updated by the CRA. Not every buyer or home will qualify. Please speak with a qualified lawyer, accountant or tax adviser about your own situation.