Updated November 2026

Buying or building a new home in Ontario? You may qualify for rebates that reduce the Harmonized Sales Tax (HST) you pay. Your eligibility depends on the property, purchase price, agreement dates, and how the home will be used.

Newly built and substantially renovated homes are generally subject to HST. Most resale residential home purchases are exempt, although related services, such as legal services, may still attract HST.

Standard new housing rebates

The standard federal new housing rebate refunds 36% of the federal portion of HST, up to $6,300, for qualifying homes valued at $350,000 or less. It gradually decreases between $350,000 and $450,000, with no standard federal rebate available at $450,000 or more.

The standard Ontario new housing rebate refunds 75% of the provincial portion of HST, up to $24,000, subject to eligibility requirements.

These rebates generally apply to qualifying homes used as your or an eligible relative’s primary residence. Certain owner-built homes, substantial renovations, mobile homes, and homes rebuilt after a fire may also qualify.

See the CRA’s new housing rebate guide.

Additional rebates for first-time buyers

Eligible first-time buyers may qualify for combined federal and Ontario rebates covering:

• Up to $50,000 of the federal portion of HST.

• Up to $80,000 of the Ontario portion of HST.

Together, these can provide up to $130,000 in HST relief on qualifying homes valued at $1 million or less. The first-time buyer rebates gradually decrease between $1 million and $1.5 million and are unavailable at $1.5 million or more.

These amounts include applicable standard new housing rebates; they are not added on top of them.

For purchases from a builder, qualifying agreements generally must be entered into on or after March 20, 2025, and before January 1, 2031. Construction, completion, occupancy, and buyer eligibility conditions also apply.

Review the CRA’s first-time buyer rebate requirements.

Temporary Ontario relief for other eligible buyers

You do not necessarily have to be a first-time buyer to receive enhanced relief.

Ontario’s temporary Enhanced New Housing Rebate and New Home Affordability Payment can together provide up to $130,000 in relief for eligible new or substantially renovated homes.

For purchases from a builder, the qualifying agreement period generally runs from April 1, 2026, through March 31, 2027. Different timing requirements apply to owner-built homes.

The amount depends on the home’s value, and construction and completion deadlines apply. Payments are coordinated with other rebates to prevent duplicate relief.

See Ontario’s temporary new home relief details.

Before you buy

Ask your builder and real estate lawyer whether the advertised price already includes any rebate and whether the rebate will be credited at closing or claimed afterward.

Confirm which program applies to your purchase before budgeting for the savings. Application deadlines and eligibility rules differ between programs.

Considering a new home in Oakville, Burlington, or Milton? Contact the Vieira Team to explore your options.