As housing affordability continues to reshape the Ontario housing market, more people are rethinking If you’ve been thinking about buying a new home in Ontario, there is a significant incentive available to eligible purchasers: the enhanced Ontario HST rebate.

The program can provide eligible buyers with up to $130,000 in combined HST relief on qualifying new homes priced up to $1.5 million or less. But there is an important catch. The enhanced program is temporary.

For buyers who have already been considering a new home, understanding how the rebate works and when you need to purchase could make a meaningful difference in the overall cost of your home.

What Is the Ontario HST Rebate for New Homes?

The Ontario enhanced new housing rebate was introduced to provide additional relief on the HST paid on qualifying new homes.

For eligible homes priced up to $1.5 million or less, the maximum combined benefit can be up to $130,000.

This includes up to $80,000 in relief on the 8% provincial portion of HST and up to $50,000 through Ontario's new home affordability payment, representing relief on the 5% federal portion.

Together, eligible purchasers can receive up to $130,000 in combined HST relief.

That is a substantial reduction in the overall cost of purchasing a new home.

How Much Can You Save With the Ontario HST Rebate?

The amount you save depends on the purchase price and your eligibility.

For example, on a qualifying new home priced at $800,000:

Purchase Price: $800,000
HST at 13%: $92,035
Potential HST Relief: $92,035
Net Purchase Price: $707,965

On a qualifying home priced at $1,000,000, the maximum combined benefit can reach $130,000.

The exact rebate available depends on the property, purchase agreement and purchaser's circumstances. Buyers should confirm their eligibility with their legal or tax professional.

At Reid’s Heritage Homes, we have homes available across a range of communities and price points, giving buyers the opportunity to take advantage of the current program while finding a home that fits their lifestyle and budget.

When does the Ontario HST Rebate End?

One of the most important things for buyers to understand is that the enhanced Ontario HST rebate is currently a temporary program.

For a home purchased from a builder, the agreement of purchase and sale generally must be entered into on or after April 1, 2026, and on or before March 31, 2027.

There are also construction deadlines. For qualifying builder purchases, construction must generally begin on or before December 31, 2028, and the home must be substantially completed on or before December 31, 2031.

Why Does March 31, 2027, Matter?

March 31, 2027, is currently the key agreement deadline for eligible purchases from builders.

There is currently no guarantee that the enhanced program will be extended beyond its existing eligibility period.

That means buyers who are already planning to purchase a new home should not assume the same level of HST relief will still be available if they wait.

Who Qualifies for the Ontario HST Rebate?

Eligibility depends on how you plan to use the home and whether you meet the program's requirements.

Buying a Home to Live In

If you are purchasing a new home to use as your primary residence, you may be eligible for the enhanced rebate if you meet the applicable requirements.

For eligible purchases from a builder, the home must generally be acquired for use as the purchaser's or their relation's primary place of residence.

When the builder pays or credits the applicable rebate at closing, the benefit can reduce the amount the purchaser needs to pay at closing, subject to eligibility.

Can Investors Get the Ontario HST Rebate?

Yes, eligible investors may also qualify for HST relief when purchasing a new home for long term rental purposes.

Different rules apply to new residential rental properties. Generally, the purchaser must meet the requirements for the rental property rebate, including leasing the property as a place of residence.

For investors, it is important to understand that the process and eligibility requirements differ from those for an owner-occupied home. A qualified tax or legal professional can help determine whether a specific purchase qualifies. They must secure a 12-month lease and submit it to CRA along with the appropriate documents. Investors must pay the HST on closing and submit for the rebate themselves.

Why Is the Ontario HST Rebate Important for Homebuyers?

The most important impact of the rebate is simple. It can significantly reduce the effective cost of buying a new home.

For buyers who have already been considering a new home, that can change the affordability equation. Because the enhanced program is temporary, timing matters.

If the home, community and price are right for you, there is a strong reason to explore the opportunity while the current program is available.

Are Ontario Homebuyers Taking Advantage of the HST Rebate?

The latest Ontario new home sales data suggests that buyers are responding.

According to an August 11, 2026, release from the Ontario Home Builders’ Association and Building Industry and Land Development Association, Ontario recorded 8,410 new home sales in Q2 2026, compared with 3,645 in Q2 2025. That represents an approximately 130% year over year increase in sales.

The same analysis found that 4,765 of those sales were incremental and attributable to the HST rebate program.

The takeaway for buyers is straightforward. The HST rebate is already influencing purchasing decisions.

For someone who has been waiting for the right opportunity to buy a new home, the current incentive provides another reason to take a closer look.

Is Now a Good Time to Buy a New Home in Ontario?

There is no single right time for everyone to buy a home. Your finances, lifestyle, employment, location and long-term plans should all factor into the decision.

But if you are already financially prepared to purchase a new home, the current HST rebate creates a time sensitive opportunity that is worth exploring.

The enhanced program currently applies to eligible agreements entered by March 31, 2027. Waiting could mean missing the current incentive if the program is not extended.

In other words, the question may not simply be:

“Should I buy a new home?”

For buyers who have already decided they want to purchase, it may be:

“If I qualify, why wait to explore the savings while this program is available?”

Find Your New Home with Reid’s Heritage Homes

At Reid’s Heritage Homes, we have a range of new homes, move in ready homes and preconstruction opportunities available across Southwestern Ontario.

Whether you're looking for a townhome, condominium or family sized home, our communities offer options for different lifestyles, locations and budgets.

The current HST rebate can make purchasing a new home more attainable, but the enhanced program is temporary.

If you've been thinking about buying, now is the time to explore your options, understand your potential savings and find out whether you qualify.

Explore Reid’s Heritage Homes communities and connect with our Sales Team to learn more about available homes and the current HST incentive.

Ontario HST Rebate FAQ

How much is the HST rebate on a new home in Ontario?

Eligible purchasers of qualifying homes priced up to $1.5 million or less may receive up to $130,000 in combined HST relief, consisting of up to $80,000 in provincial HST relief and up to $50,000 through Ontario's new home affordability payment.

When does the Ontario HST rebate expire?

For eligible purchases from a builder, the agreement of purchase and sale generally must be entered into between April 1, 2026, and March 31, 2027. Additional construction deadlines apply.

Does the Ontario HST rebate apply to new condos?

Yes. The Ontario enhanced new housing rebate can apply to eligible new residential condominium units purchased from a builder, provided the applicable requirements are met.

Does the Ontario HST rebate apply to investors?

Eligible purchaser landlords may qualify for the applicable enhanced rental property rebate when purchasing a qualifying new residential property for long term rental use. The requirements differ from those for owner occupied homes. This rebate refers to the New Residential Rental Property Rebate (NRRPR).

Do I get the HST rebate at closing?

For eligible purchases from Reid’s Heritage Homes, the builder may pay or credit the applicable rebate at closing if the purchaser meets the requirements and provides the required documentation.

Is the Ontario HST rebate guaranteed to continue after March 2027?

The current enhanced program has a defined eligibility period for agreements of purchase and sale entered by March 31, 2027. Buyers should not assume the program will be extended beyond the current eligibility period.

Where can I find an HST eligible new home in Ontario?

Reid’s Heritage Homes offers new homes and communities across Southwestern Ontario. Buyers can explore available inventory and speak with the Sales Team about current communities, pricing and potential HST rebate eligibility. For more information, head over to our communities’ page to discover which Community is the perfect match for you!

The information in this article is for general informational purposes only and is not tax, legal or financial advice. HST rebate eligibility, amounts and program requirements are subject to applicable legislation and individual circumstances. Purchasers should consult their legal, tax or financial advisor and review the latest CRA guidance before making a purchase.