If you buy a new or pre-construction home in Ontario, you’ll probably see thousands of dollars added to your closing costs in GST/HST. Eligible buyers may be able to recover some of this cost through the GST New Housing Rebate. Find out what rebate you may be entitled to, and how much you can save, before you sign a pre-construction contract.
For builder purchases, the qualifying agreement must generally be signed between April 1, 2026 and March 31, 2027.
The amount of your GST refund depends on the purchase price, your eligibility, the tax you owe, the agreement date, and the specific programs that apply to your purchase. See the CRA's GST/HST New Housing Rebate guidance for the latest eligibility requirements and rebate rules. When considering a property, use the Mortgage Calculator to estimate your monthly payments and evaluate the total cost of your new home.
What is the GST New Housing Rebate?
The rebate available to eligible buyers of new or substantially renovated homes enables them to get back part of the GST/HST that they have paid, on the condition that the property is to be their main residence. This covers both the federal component of the GST rebate on new homes and Ontario's provincial share.The federal rebate is currently up to $6,300, and the existing Ontario new housing tax rebate is up to $24,000. The federal rebate is phased out for homes valued between $350,000 and $450,000. The 2026 programs discussed below are in addition to the existing rebates and do not replace them.First-Time Home Buyers: What’s New in 2026?
One of Ontario’s 2026 changes is the First-Time Home Buyers’ GST/HST Rebate (FTHB), worth up to $50,000 in federal relief. Homes valued at $1 million or less may qualify for up to 100 per cent of the eligible GST on new homes, up to $50,000. The FTHB GST rebate gradually phases out for homes costing between $1 million and $1.5 million, and homes over $ 1.5 million are not eligible.This first-time home buyer GST rebate applies to qualified new or substantially renovated homes that are used as a principal residence. It adds to the existing federal rebate. Applications are now open so it’s worth seeing if you’re eligibleOntario's Enhanced New Housing Rebate in 2026
Together, the Ontario Enhanced New Housing Rebate (ENHR) and the existing Ontario rebate on the 8% provincial portion of HST can provide up to $80,000 in relief. But this is not a single $80,000 rebate; it's the combined maximum of the two programs.| Home Value | Ontario ENHR Treatment |
| Up to $1M | Full 8% provincial HST relief, up to $80,000 |
| Over $1M–$1.5M | Up to $80,000 |
| Over $1.5M–below $1.85M | Partial rebate |
| $1.85M+ | ENHR unavailable; existing Ontario rebate may still apply |
Ontario's New Home Affordability Payment (ONHAP)
The Ontario New Home Affordability Payment (ONHAP) is a distinct payment amounting to up to $50,000, which is equivalent to up to 100% of the 5% federal HST component. It can be obtained together with ENHR eligibility, and builders have the option of paying it or crediting it at closing.Importantly, ONHAP is reduced by any federal GST rebate for first-time home buyers or standard GST/HST rebate you receive. Don't assume you'll stack $50,000 + $80,000 + $50,000 actual relief depending on your specific eligibility.How much GST/HST relief could you obtain?
| Home Value | Potential Federal Relief | Potential Ontario Relief |
| Up to $1M | FTHB rebate up to $50K | Provincial relief up to $80K |
| $1M–$1.5M | Federal FTHB rebate reduced | Up to $80K provincial relief |
| $1.5M–$1.85M | No FTHB federal rebate | ENHR may be partially available |
| $1.85M+ | No FTHB rebate | ENHR unavailable; existing rebate may remain |
Does the GST New Housing Rebate extend to pre-construction condos?
Yes. Qualifying residential condominium units can receive the condo HST rebate when they meet applicable requirements. If you're considering a pre-construction condo, you can explore new pre-construction condos in the GTA and compare projects before making a purchase. Builders often assign or credit the rebate at closing, so always review the rebate provisions in your purchase agreement. CRA's Form GST190 specifically covers houses purchased from builders, including condo units.Who qualifies for the GST new housing rebate?
- You're an individual purchaser.
- The house is either new or has been greatly renovated.
- This will be the house where you live mainly.
- You satisfy the conditions for first-time buyer status if you are claiming FTHB rebates.
- Your purchase and build dates are important.
- The home is within the relevant parameters.
- You satisfy the occupancy guidelines.
- That doesn’t mean every buyer is eligible for every rebate scheme.
What About Investors Buying New Homes to Rent?
The standard new housing rebate is generally meant for primary residences, not rental investments. Investors buying new units to rent should look into the separate new residential rental property rebate rules instead of assuming the homeowner rebate applies.What is the procedure for claiming the rebate?
There are two primary options. With a builder's credit, the builder can pay or have the rebate credited to them at closing after the forms and assignments have been completed. Alternatively, the buyers may submit a direct CRA claim by using Form GST190. In the case of 2026 ENHR claims, CRA guidance states that processing will start in the fall of 2026, with mail filings taking place during the transition period.What GTA Pre-Construction Buyers Should Check Before Closing
- Has the advertised price already included HST?
- Has the builder put an estimate for your rebate?
- What rebate program is the builder allocated?
- Does your agreement date count?
- Will you use this property as your main home?
- Can you qualify as a first-time buyer?
- What will occur if the rebate is rejected?
Final Thoughts: Calculate Your Real New-Home Cost
Include GST/HST in your home's cost, instead of dealing with it later. Before signing any documents, find out what rebates you could be eligible for and check for other potential savings such as up to 1.5% cashback on the purchase. Before deciding, consider GTA pre-construction projects and contact our experts at Serik Realty to better understand your GST/HST rebate options, project costs, and the best purchase strategy.