Ontario HST Relief on New Homes: The March 31, 2027 Deadline Explained

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Ontario’s up-to-$130,000 HST relief needs a builder agreement signed by March 31, 2027, and the older $24,000 rebate ends the same day.

This guide is for anyone in Toronto or the GTA thinking about buying a new home from a builder, especially move-up buyers who are not first-time buyers. You will see what Ontario’s temporary HST relief is worth, what “signed by March 31, 2027” really means, what disappears on April 1, 2027, and how to decide whether to act before the date.

What is the March 31, 2027 HST deadline in Ontario?

It is the last day to sign an agreement with a builder and still qualify for Ontario’s temporary HST relief on a new home. The relief has two parts:

• The Ontario Enhanced New Housing Rebate (ENHR). Combined with Ontario’s existing rebate, it returns up to $80,000 of the 8% provincial part of the HST.
• The Ontario New Home Affordability Payment (ONHAP). A top-up of up to $50,000, equal to as much as the full 5% federal part.

Together that is up to $130,000. CRA Notice 346 says the ENHR applies to agreements of purchase and sale signed on or after April 1, 2026 and on or before March 31, 2027. The home must be the primary residence of the buyer or a relation, and you do not need to be a first-time buyer. Ontario’s October 2026 fiscal update confirmed the program and the window.

How much HST relief can you get on a new home before the deadline?

The amount depends on the price before HST. Ontario’s fall update sets four bands.

Source: Ontario 2026 Economic Outlook and Fiscal Review, Annex (29 October 2026); CRA Notice 346 (August 2026). Totals are my arithmetic and assume every condition is met.

If you are also a first-time buyer, the federal first-time buyer rebate is claimed first and the ONHAP is reduced by that amount, so the total stays the same. The difference is which government pays which piece.

What happens to the HST rebate after March 31, 2027?

Two things end at once, and the second one gets less attention.

First, the enhanced relief stops for new agreements. Second, Ontario’s fall update says it is proceeding with eliminating the older Ontario New Housing Rebate, the one that has returned 75% of the provincial HST on the first $400,000, up to $24,000. It will generally not be available for purchases where the agreement is signed after March 31, 2027.

The federal GST new housing rebate does not fill the gap in the GTA. The CRA’s guide shows it drops to zero for homes valued at $450,000 or more. So a repeat buyer who signs on April 1, 2027 could pay the full 13% HST.

Source: Ontario 2026 Fall Economic Statement annex; CRA Notice 346; CRA Guide RC4028 (Oct 2026); CRA first-time home buyers’ rebate rules. My arithmetic; the April 2027 column assumes the older rebate ends as Ontario has announced.

First-time buyers keep a separate federal and Ontario rebate that runs for agreements signed before 2031, which is why their numbers barely move under $1 million. I explain that in detail in my post on the first-time home buyers’ GST rebate.

What counts as signing before March 31, 2027?

The test is the date the agreement of purchase and sale with the builder was “entered into.” Notice 346 adds several rules people miss:

• Old agreements stay old. If you signed before April 1, 2026 and the agreement is later changed or assigned, it is treated as signed on the original date. You do not get the enhanced rebate, though you may still get the older rebate or a first-time buyer rebate.
• Cancel-and-re-sign does not work. A new agreement with the same builder, a related party or another builder of the project can be treated as signed on the earlier date unless it was made mainly for a real reason other than getting the rebate.
• Assignments need two dates. Both the original agreement and the assignment must fall between April 1, 2026 and March 31, 2027. Ontario uses the same two-date test for keeping the older $24,000 rebate.
• Owner-built homes use the date construction or substantial renovation starts, between April 1, 2026 and March 31, 2027.
• Co-op shares use the date of the share purchase agreement.

If your deal has conditions, or you are counting on a signature in the last days of March 2027, ask a real estate lawyer how the date will be read for your agreement. Do not rely on a sales office.

What are the construction and closing deadlines for the HST relief?

Signing in time is not enough. For a home bought from a builder, Notice 346 also requires that:

• Construction starts on or before December 31, 2028.
• The home is substantially completed on or before December 31, 2031.
• HST becomes payable on or before December 31, 2032.

The price limits are measured on the total price, which Notice 346 says includes any other taxable purchase of an interest in the same home. Ask your lawyer whether extras sold under a separate agreement, such as parking or a locker, count, because they can push you over $1 million, $1.5 million or $1.85 million.

How is the Ontario HST relief paid on closing?

The two parts are paid differently:

• The ENHR is usually credited by the builder against your price on closing. The builder files Form GST190 and the Ontario schedule RC7190-ON with its HST return. If the builder does not credit it, you file the same forms yourself, within two years of the date ownership transfers to you.
• The ONHAP is paid by the Province, not the builder, and does not appear on the builder’s HST return. No separate application is needed if you consent on the rebate form to the CRA sharing your contact, banking and rebate details with Ontario. Ontario expects to start issuing payments in early 2027.

Read your statement of adjustments line by line, and ask your builder and lawyer who will receive the ONHAP in your deal, since it is not part of the builder’s HST credit.

Should you rush to buy a new home before March 31, 2027?

Only if the home makes sense without the deadline. The market gives buyers time to be careful. TRREB reported 5,603 GTA sales in October 2026, down 7.9% from a year earlier, with the average price down 2.7% and the benchmark price down 4.3%. TRREB’s CEO pointed to HST rebates as one of the policies that should help bring more ownership supply over the medium term.

Also know what protection you have once you sign. A new condo buyer has a 10-day right to rescind under section 73 of the Condominium Act, counted from the latest of receiving the disclosure statement, the condo guide and the signed agreement; my post on the 10-day rescission right walks through it. Freehold buyers have no cooling-off period yet: Tarion says the Province moved the start of the freehold cooling-off rule to January 1, 2028.

Who benefits most from the March 31, 2027 deadline?

• Move-up and downsizing buyers who already own or recently owned a home. They have the most to lose after the deadline.
• Buyers between $1 million and $1.5 million, where the relief is a flat $130,000.
• Parents buying for an adult child. The home can be the primary residence of the buyer or a relation.
• Landlords buying a new unit to rent have a parallel enhanced rental rebate with the same signing window. It has its own rules and CRA notice, so check it separately.

What to do next

1. Decide whether you are a first-time buyer under the CRA’s four-year test; that changes how much the deadline matters to you.
2. Get the builder’s price in writing before HST, and list every extra (parking, locker, upgrades) sold with it.
3. Ask the builder for the construction start date and status of permits, and prefer homes already under construction.
4. Have a real estate lawyer review the agreement and the HST schedule before you sign, ideally well before late March 2027.
5. Run your mortgage and closing costs on the after-rebate price so the rebate does not hide a payment you cannot carry.

Frequently asked questions

Sources

• CRA Notice 346, Ontario Enhanced New Housing Rebate (August 2026)
• Ontario 2026 Economic Outlook and Fiscal Review, Annex: tax measures
• CRA Guide RC4028, GST/HST New Housing Rebate (Rev. 10/2026)
• CRA: First-time home buyers’ GST/HST rebate, who can apply
• Tarion: update on cooling-off period and new information sheets
• Condominium Act, 1998, s. 73 (e-Laws)
• TRREB Market Watch, October 2026

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?