By Jason Polonski, REALTOR® · Updated October 2026
The 2026 GST/HST New Home Rebate in Ontario (Ottawa Buyer’s Guide)
If you’re buying a new-build home in Ottawa, 2026 is the year the rebates got big. Under Ontario’s temporary enhanced program, buyers who sign a builder agreement between April 1, 2026 and March 31, 2027 can get back the full 13% HST on a new home priced up to $1 million — up to $130,000 — and you don’t have to be a first-time buyer.
That sits alongside the federal first-time home buyers’ GST rebate (up to $50,000) and the long-standing federal and Ontario new housing rebates. This guide explains which ones apply to you, how much each is worth at different prices, and how to make sure you actually receive the money.
New construction is taxed differently from resale. A resale home has no GST/HST added to the price; a new or substantially renovated home does. Getting the rebates right can change what a new build really costs you by six figures.
Quick answer: on an eligible new home priced at $900,000 before HST, with an agreement signed between April 1, 2026 and March 31, 2027, the rebate is about $117,000 — the full 13% HST.
$
The purchase price of a new-build or substantially renovated home.
Estimated total GST/HST rebate
$0
Estimates Ontario's enhanced rebate (ENHR + ONHAP) for agreements signed April 1, 2026 – March 31, 2027, or the standard Ontario and federal rebates otherwise. Assumes a new home bought from a builder. Amounts between $1.5M and $1.85M phase down and aren't calculated. This is not tax advice — confirm with the CRA and your accountant.
Ontario’s enhanced HST rebate: up to $130,000 for all buyers (2026–27)
This is the headline change for 2026. For a limited window, Ontario and the federal government together remove the entire 13% HST on eligible new homes up to $1 million. It has two parts:
- Ontario Enhanced New Housing Rebate (ENHR): 100% of the 8% provincial portion of the HST, up to $80,000.
- Ontario New Home Affordability Payment (ONHAP): up to 100% of the 5% federal portion, up to $50,000. It’s reduced by any federal rebate you’re already entitled to, such as the first-time buyers’ GST rebate — so first-time buyers get the federal 5% through that rebate first and the ONHAP tops up the rest. If you’re not a first-time buyer, the ONHAP is how you get the 5% back.
How much by price (before HST)
| Home price (before HST) | Provincial (ENHR) | Federal portion (ONHAP / FTHB) | Total |
|---|---|---|---|
| $700,000 | $56,000 | $35,000 | $91,000 |
| $900,000 | $72,000 | $45,000 | $117,000 |
| $1,000,000 | $80,000 | $50,000 | $130,000 |
| $1,000,000 – $1,500,000 | $80,000 | $50,000 | $130,000 (capped) |
| $1,500,000 – $1,850,000 | Reduced gradually | Reduced gradually | Declining |
| $1,850,000 and up | Up to $24,000 (standard rebate) | $0 | Up to $24,000 |
Who qualifies
- Agreement date: you enter into the agreement of purchase and sale with the builder between April 1, 2026 and March 31, 2027. For owner-built homes, construction or substantial renovation must begin in that window. Co-op share purchases in the window also qualify.
- Not limited to first-time buyers. Move-up buyers and downsizers qualify too.
- Primary residence. The home must be the primary place of residence for you or a relation.
- Signed before April 1, 2026? Amending an older agreement generally doesn’t bring it into the program — confirm with your lawyer before assuming otherwise.
The window is temporary. If you’re weighing a new build in Kanata, Stittsville or Barrhaven, the signing date matters more than the closing date. Confirm current eligibility on the CRA and Ontario pages linked above before relying on it.
The federal First-Time Home Buyers’ GST rebate
Announced in 2025, this federal rebate gives eligible first-time buyers relief on the 5% federal GST portion on a new home used as their primary residence.
How much you can get
- Full relief — up to 100% of the 5% federal GST — on qualifying homes priced up to $1,000,000 (a maximum of about $50,000).
- Partial relief on homes priced between $1,000,000 and $1,500,000, phasing out linearly.
- No rebate on homes priced at $1,500,000 or more.
Use the estimator above to see the approximate amount for a given price.
Who qualifies as a first-time buyer
Broadly, you must be buying your first home and using it as your primary place of residence, and meet the CRA’s definition of a first-time buyer (generally not having owned and lived in a home you or a spouse/common-law partner owned within a set look-back period). Exact conditions are set by the CRA — verify your situation before counting on the rebate.
Which homes qualify
The rebate applies to new or substantially renovated homes — from a builder, an owner-built home, or certain co-op and long-term-lease arrangements — used as your primary residence. Resale homes do not qualify.
Key dates and timing
Eligibility is tied to when the purchase agreement was entered into (after the program’s announcement date) and to construction-timing conditions (construction beginning and being substantially completed within defined windows). These dates matter and are easy to get wrong — confirm the current rules on the CRA page before you rely on the rebate.
If your agreement falls in the April 2026 – March 2027 window, the enhanced Ontario program above already covers the federal 5% for most buyers, so the first-time buyer rebate mainly changes which program pays it, not the total.
The existing federal GST/HST New Housing Rebate
Separate from the new first-time buyers’ rebate, the long-standing GST/HST New Housing Rebate returns 36% of the federal 5% GST on a new home, up to $6,300, phasing out for homes priced between $350,000 and $450,000. Because of those thresholds, it mainly helps lower-priced new homes, and it’s available more broadly than the first-time buyers’ rebate. Understand which one applies to your purchase — they don’t both stack without limits.
The standard Ontario New Housing Rebate (up to $24,000)
Outside the enhanced 2026–27 window, Ontario’s regular rebate returns 75% of the provincial 8% portion of HST on a new home, up to $24,000. Unlike the federal thresholds, it isn’t phased out at higher prices, so it still applies to agreements signed before April 1, 2026, to homes priced over $1.85 million, and to agreements signed after March 31, 2027 unless the program is extended. It often matters even when the federal new housing rebate is reduced or gone — and it’s one of the most overlooked pieces of a new build’s true cost.
How the rebates work together on an Ottawa new build
If your agreement is in the enhanced window (April 1, 2026 – March 31, 2027): the ENHR covers the 8% provincial portion and the ONHAP covers whatever part of the federal 5% isn’t already covered by another federal rebate. First-time buyer or not, the total is the same — up to $130,000.
If it isn’t: you’re looking at the standard Ontario rebate (up to $24,000), plus the federal first-time buyers’ rebate if you qualify, or the smaller federal new housing rebate on lower-priced homes.
Builder pricing is where money gets lost. Many Ottawa builders quote an “HST included” price that’s already net of rebates assigned to them at closing. Before signing — or before closing, if you’ve already signed — get written answers to three questions:
- Is any rebate netted out of the price and assigned to the builder? Which one, and how much?
- Will the enhanced rebate be credited to me on the statement of adjustments, or do I apply to the CRA myself after closing?
- What happens to the price if I turn out not to qualify?
On a $1 million home, the difference between “credited on closing,” “already built into the price” and “apply yourself” can be $100,000. Have your real estate lawyer check the HST schedule and the statement of adjustments.
Getting the rebate right changes the real price you pay, so weigh it against the full cost to buy a house in Ottawa. First-time buyers can also stretch their down payment with a First Home Savings Account and the RRSP Home Buyers’ Plan.
How to claim the rebate
There are two routes:
- Builder credit on closing. The builder credits the rebate and it shows up as a reduction on your statement of adjustments. The builder files the paperwork. For the enhanced program, builders can credit both the provincial ENHR and the ONHAP.
- Apply to the CRA yourself. If the builder doesn’t credit it, you pay the full HST at closing and apply afterwards using Form GST190 with Form RC7190-ON. Complete the “Consent to share information” section — that’s how Ontario pays the ONHAP without a separate application. You’ll generally receive two payments: the CRA pays the provincial portion, then Ontario pays the ONHAP once your application is assessed. See CRA Guide RC4028 for supporting documents.
A few practical tips: file soon after closing rather than waiting out the deadline; don’t count on the rebate for your down payment or closing funds, since it arrives months later; and keep copies of everything — the agreement, any amendments, the statement of adjustments and proof of occupancy. Check the CRA’s application page for the current filing deadline and whether online filing is open.
What this means for Ottawa new-construction buyers
Ottawa has active new-build markets in Kanata, Stittsville, Barrhaven, Riverside South and beyond. If you’re buying new — especially as a first-time buyer — these rebates can materially change your budget and your closing costs. The key is to confirm eligibility and the contract wording before you commit, not after.
Tax rules change and eligibility depends on your specific situation. This page is general information, not tax or legal advice. Confirm current thresholds, dates and eligibility with the Canada Revenue Agency and a qualified accountant before relying on any rebate.
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Jason Polonski is a full-time Ottawa REALTOR® with more than 15 years of local experience, including guiding buyers through new-construction purchases across Kanata, Stittsville and Barrhaven. His background in construction and the electrical trades helps him read a builder’s spec and a home’s real quality, and his Bachelor of Commerce from Concordia University (double major in Marketing and Finance) sharpens how he helps clients weigh the numbers on a new build — rebates included. Jason is a REALTOR®, not a tax advisor, and always recommends confirming rebate eligibility with your accountant. If you’re considering a new home in Ottawa, get in touch for straightforward guidance.
Related guides: new build financing, the Tarion warranty, do you need a REALTOR® for new construction and custom home vs new build.
GST HST New Home Rebate Ontario (FAQs)
It’s a new federal rebate that gives eligible first-time buyers up to 100% relief on the 5% federal GST on a new home used as their primary residence — up to about $50,000 on homes priced up to $1 million, phasing out between $1 million and $1.5 million.
If you sign a builder agreement between April 1, 2026 and March 31, 2027, you can get back the full 13% HST on a home up to $1 million — up to $130,000 — capped at $130,000 up to $1.5 million and reduced between $1.5 million and $1.85 million. Outside that window, it’s the standard Ontario rebate (up to $24,000) plus any federal rebate you qualify for.
No. Ontario’s enhanced 2026–27 rebate is open to all eligible buyers of a new home used as a primary residence, including move-up buyers and downsizers. Only the federal first-time home buyers’ GST rebate requires first-time buyer status.
Generally no. Eligibility is based on the date you entered into the agreement with the builder, and amending an older agreement usually doesn’t change that. You’d still be eligible for the standard Ontario rebate of up to $24,000 and any federal rebate you qualify for.
The Ontario New Home Affordability Payment covers up to 100% of the 5% federal portion of HST, up to $50,000, for buyers who qualify for Ontario’s enhanced rebate. It’s reduced by any federal rebate you’re entitled to, and there’s no separate application — it’s handled through your CRA rebate application or by your builder.
Generally, you must be buying your first home and using it as your primary residence, and meet the CRA’s first-time buyer definition. Confirm your specific eligibility with the CRA and your accountant.
No. The GST/HST new home rebates apply to new or substantially renovated homes. Resale homes don’t have GST/HST added to the price and don’t qualify.
They’re separate programs covering the federal and provincial portions of HST, and the new first-time buyers’ rebate is different again. They interact with limits — which apply to you depends on price and eligibility, so confirm the combination for your purchase.
Either the builder credits it on closing (you’ll see it on your statement of adjustments), or you pay the full HST and apply to the CRA after closing using Forms GST190 and RC7190-ON. Ask your builder in writing which applies before you close.
