There are now five overlapping rebate programs on new Ontario homes. Most buyers only know about one.
A first-time buyer of a new $1,000,000 condo in Ontario can now have the entire 13% HST relieved — $130,000. That is $50,000 federal plus $80,000 provincial.
There are five overlapping programs, not one. Between 1 April 2026 and 31 March 2027, one of them — the Ontario Enhanced New Housing Rebate plus the Ontario New Home Affordability Payment — is open to every buyer, not just first-timers.
The federal rebate became law on 12 March 2026. Agreements signed on or after 20 March 2025 can qualify — including ones already signed.
If you bought or are buying a new condo in Etobicoke or anywhere in Ontario, the tax picture changed dramatically in 2026 — and most buyers, and a surprising number of agents, are still working from the old numbers. There are now five separate rebate programs that can apply to the same purchase. Stacked correctly, a first-time buyer of a $1,000,000 new condo pays zero HST. Here is exactly how it works, with the real dates and the real thresholds.
The five programs, side by side
This is the table nobody publishes. Every one of these is currently in force.
| Programme | Who | Covers | Maximum |
|---|---|---|---|
| Federal FTHB GST/HST Rebate | First-time buyers | The 5% federal portion | $50,000 |
| Ontario FTHB HST Rebate | First-time buyers | The 8% provincial portion | $80,000 |
| Ontario Enhanced New Housing Rebate (ENHR) | Everyone — time-limited | The 8% provincial portion | $80,000 |
| Ontario New Home Affordability Payment (ONHAP) | Everyone — time-limited | Mirrors the 5% federal portion | $50,000 |
| Legacy Ontario New Housing Rebate | Everyone | 75% of the 8% on the first $400,000 | $24,000 |
| Legacy federal GST New Housing Rebate | Everyone | 36% of the GST, nil at $450,000 | ~$6,300 |
The last two are the old rules. In Toronto the legacy federal rebate is effectively dead — it phases out completely at $450,000, and almost no new condo here sells below that.
What a first-time buyer actually gets
The federal First-Time Home Buyers’ GST/HST Rebate became law on 12 March 2026 through Bill C-4. The Ontario equivalent mirrors it on the provincial 8%.
| Purchase price | Federal | Ontario | Total relief |
|---|---|---|---|
| $650,000 | $32,500 | $52,000 | $84,500 — all of it |
| $900,000 | $45,000 | $72,000 | $117,000 — all of it |
| $1,000,000 | $50,000 | $80,000 | $130,000 — all of it |
| $1,250,000 | $25,000 | $40,000 | $65,000 |
| $1,500,000+ | $0 | $24,000 floor | $24,000 |
Up to $1,000,000 you get 100% of the tax back. Between $1,000,000 and $1,500,000 it declines on a straight line. Above $1,500,000 the federal rebate is nil, though Ontario keeps a $24,000 floor so a first-time buyer is never worse off than under the old rules.
The intermediate figures above are calculated from the published straight-line formulas — they are not quoted from a government table. Confirm your specific number with your lawyer.
The date that trips everyone up
This matters: if you signed an agreement between those two dates and someone told you that you missed the window, you did not.
The full conditions for a builder purchase:
- Agreement of purchase and sale signed on or after 20 March 2025 and before 2031
- Construction begins before 2031
- Substantially completed before 2036
- Ownership transferred to you before 2036
Who counts as a first-time buyer
Stricter than most people assume. All of these must be true:
- You are at least 18, and a Canadian citizen or permanent resident
- You have not lived in a home you or your spouse owned — anywhere in the world — as your primary residence in the current calendar year or the previous four
- The home is your primary residence and you are the first person to occupy it
- Neither you nor your spouse has claimed this rebate before — once per couple, per lifetime
The four-year look-back is where people fail. The CRA’s own example: someone who sold a home in June 2022 and took ownership of a new one in August 2026 is not eligible, because 2022 falls inside the four preceding calendar years. Take ownership in February 2027 instead and they are eligible.
You have to meet the test on the date ownership transfers — not the date you signed. On a pre-construction condo those can be years apart, and that gap is occasionally worth planning around.
The window that is open to everyone right now
This is the part almost nobody has registered, and it closes soon.
For agreements signed between 1 April 2026 and 31 March 2027, Ontario has layered on two further programs that are not restricted to first-time buyers:
- Ontario Enhanced New Housing Rebate (ENHR) — up to $80,000 of the provincial 8%
- Ontario New Home Affordability Payment (ONHAP) — up to $50,000, mirroring the federal 5%
Which means a second-time buyer, a move-up buyer, or a downsizer buying a new $1,000,000 condo in this window can also get to $130,000. That has never been true before.
| Home value | ENHR (provincial) | ONHAP |
|---|---|---|
| Up to $1,000,000 | 100% of the 8%, max $80,000 | up to $50,000 |
| $1,000,001 – $1,500,000 | flat $80,000 | flat $50,000 |
| $1,500,001 – $1,850,000 | declines to $24,000 | declines to $0 |
| Over $1,850,000 | $24,000 | $0 |
Conditions: agreement signed in the window, construction begins on or before 31 December 2028, substantially completed on or before 31 December 2031, and tax payable no later than 31 December 2032.
The 31 March 2027 end date is written into legislation, not policy. It is not something a builder can extend for you.
Pre-construction: the traps that cost real money
Three things I check on every pre-construction file.
1. Whether the builder can credit you at closing
Normally the builder credits the rebate at closing so you never front the cash. But there are two hard cut-offs:
- If ownership transferred before 12 March 2026, the builder could only credit the legacy rebate. You must claim the FTHB and Ontario portions yourself — within two years of the ownership transfer date.
- Builders cannot credit the Ontario ENHR where HST became payable before 12 June 2026. Those buyers pay at closing and claim it back afterwards.
If you closed in 2025 or early 2026 and only got the old $24,000, you may be owed tens of thousands and not know it. The two-year clock is running.
2. Assignments are largely excluded
For the Ontario ENHR, both the original agreement and the assignment agreement must fall inside the 1 April 2026 – 31 March 2027 window. That disqualifies nearly all existing assignment inventory. Whether the federal FTHB rebate carries the same restriction is reported but not something I could confirm against CRA guidance — get legal advice on this specific point.
There is also an anti-avoidance rule: an agreement that is varied, altered, assigned or re-executed is deemed to be the original agreement. You cannot re-paper a 2024 deal into the 2026 window.
3. Buying to rent is a different calculation entirely
If you will not live in it, the FTHB rebate is unavailable — primary residence is mandatory. You fall to the New Residential Rental Property Rebate, which for this window is enhanced to as much as $80,000 provincial plus $50,000 ONHAP.
But here is the cash-flow problem: unlike the ENHR, the builder cannot credit the rental rebate at closing. You pay the full HST on closing day and claim it back from the CRA afterwards. On a $900,000 condo that is roughly $117,000 you need to have available and then wait to recover. I have watched this catch investors badly. Plan for it before you firm up.
What is still uncertain
Being straight with you about what is not settled:
- The legacy $24,000 Ontario rebate and the standard rental rebate are proposed to be eliminated after the enhancement period. Details are expected in the Ontario Economic Outlook and Fiscal Review in autumn 2026. This is proposed, not enacted — but it is the biggest live question here.
- The Ontario FTHB rebate and purpose-built rental relief are explicitly not affected by that proposed elimination.
- CRA forms have lagged the legislation all year. Owner-built ENHR guidance is still described as incomplete.
- Whether Ottawa extends ONHAP-style relief to other provinces is unresolved.
Find out exactly what you qualify for
Send me your details and I will map your specific purchase against all five programs — including whether you can still claim retroactively on a 2025 or early-2026 closing.
- Which of the five rebates apply to your agreement date
- The actual dollar figure for your purchase price
- Whether your builder can credit at closing, or you claim after
- Retroactive claims — the two-year window may still be open
- For investors: the real cash-flow requirement on closing day
Frequently asked questions
How much HST rebate can I get on a new condo in Ontario in 2026?
Up to $130,000 — $50,000 from the federal First-Time Home Buyers’ GST/HST Rebate plus $80,000 from Ontario. On a $1,000,000 new home that is the entire 13% HST. Above $1,000,000 the rebate declines on a straight line to nil at $1,500,000 federally, with a $24,000 Ontario floor.
When did the new GST rebate for first-time home buyers start?
It applies to agreements of purchase and sale signed on or after 20 March 2025. Note that many sources say 27 May 2025 — that was the date Bill C-4 was introduced, but the effective date was amended back to 20 March 2025 before the bill received Royal Assent on 12 March 2026.
Do I have to be a first-time buyer to get the HST rebate in Ontario?
Not between 1 April 2026 and 31 March 2027. During that window Ontario’s Enhanced New Housing Rebate (up to $80,000) and the Ontario New Home Affordability Payment (up to $50,000) are available to all buyers of new homes, not just first-time buyers. That window closes 31 March 2027 and the date is written into legislation.
Who qualifies as a first-time home buyer for the GST rebate?
You must be 18+, a Canadian citizen or permanent resident, and must not have lived in a home you or your spouse owned — anywhere in the world — as your primary residence in the current calendar year or the previous four. The home must be your primary residence and you must be its first occupant. The rebate can only be claimed once per couple, per lifetime.
Can I still claim the rebate if I already closed on my condo?
Possibly, and it is worth checking. The Ontario first-time buyer rebate is retroactive to 20 March 2025, and if ownership transferred before 12 March 2026 your builder could only have credited the legacy rebate. You generally have two years from the ownership transfer date to file. Buyers who closed in 2025 or early 2026 may be owed a substantial amount.
Does the HST rebate apply if I buy a condo to rent out?
Not the first-time buyer rebate — that requires the home to be your primary residence. Investors fall to the New Residential Rental Property Rebate, which is enhanced during the 2026–27 window. The critical difference is that the builder cannot credit it at closing, so you pay the full HST on closing day and claim it back afterwards. Budget for that cash-flow gap.
Do assignment sales qualify for the HST rebate?
For the Ontario Enhanced New Housing Rebate, both the original agreement of purchase and sale and the assignment agreement must fall within 1 April 2026 to 31 March 2027 — which excludes nearly all existing assignment inventory. An anti-avoidance rule also deems a varied or re-executed agreement to be the original one, so an older deal cannot be re-papered into the window.
What is the difference between the GST rebate and the Ontario HST rebate?
Ontario’s 13% HST is made of a 5% federal portion and an 8% provincial portion. The federal rebates address the 5%; the Ontario rebates address the 8%. They are separate programs with separate rules and separate maximums, and they stack — which is how a buyer reaches $130,000.
Is the $24,000 Ontario new housing rebate still available?
Yes, it remains in force and has no price phase-out. However it is proposed to be eliminated after the enhancement period ends, with details expected in Ontario’s autumn 2026 fiscal update. That is a proposal, not law, as at August 2026.
Who can help me work out which rebates apply to my purchase?
I’m Jatin Dua, a Realtor with RE/MAX Quantum Realty specialising in Etobicoke and Toronto pre-construction condos. I map every client’s purchase against all five programs before they firm up — and for anything contested, I’ll tell you to speak to a real estate lawyer, because I am not one. Call 437-987-1925 or email connect@jatindua.com.
As at August 2026, five GST/HST rebate programs apply to new homes in Ontario. A first-time buyer of a new home priced at or below $1,000,000 can receive up to $130,000 in total relief: $50,000 from the federal First-Time Home Buyers’ GST/HST Rebate (enacted by Bill C-4, Royal Assent 12 March 2026, applying to agreements signed on or after 20 March 2025) and $80,000 from the Ontario First-Time Home Buyers’ HST Rebate.
Between 1 April 2026 and 31 March 2027 only, the Ontario Enhanced New Housing Rebate (max $80,000) and the Ontario New Home Affordability Payment (max $50,000) extend equivalent relief to all buyers of new homes, not only first-time buyers. Relief is 100% up to $1,000,000, then declines on a straight line, reaching nil federally at $1,500,000. Ontario retains a $24,000 floor.
Rebates for investment properties fall under the New Residential Rental Property Rebate and cannot be credited by the builder at closing. Filing deadline is generally two years from transfer of ownership.
Sources
- Canada Revenue Agency — First-time home buyers’ GST/HST rebate: What is the rebate
- Canada Revenue Agency — First-time home buyers’ GST/HST rebate: Who can apply
- Parliament of Canada — Bill C-4, Making Life More Affordable for Canadians Act (Royal Assent)
- Government of Ontario — 2026 Budget: HST relief on new homes
- Canada Revenue Agency — GST/HST Notice 346, Ontario Enhanced New Housing Rebate
- Canada Revenue Agency — GST/HST new housing rebate
- Legislative Assembly of Ontario — Bill 114, HST Relief Implementation Act (Residential Property Rebates), 2026
About the author — Jatin Dua, Etobicoke real estate agent
I’m Jatin Dua, a Realtor with RE/MAX Quantum Realty working across Etobicoke, The Queensway, Mimico, Humber Bay Shores and the wider Toronto market, with a focus on condos and pre-construction. A large share of my business is pre-construction, which means I read these rebate rules the way other people read the sports pages — because getting the agreement date wrong by a week can cost a client $80,000.
Reach me at connect@jatindua.com or 437-987-1925, or book a free consultation.
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