How to Claim the New GST/HST Rebate on New Homes in Ontario (2026 Guide)

Updated: April 2026 Location: Ontario, Canada

Key Points — Ontario GST/HST Rebate 2026

• Ontario new homes are subject to 13% HST (5% federal GST + 8% provincial portion)
• Eligible buyers may qualify for both federal GST and Ontario new housing rebates
• Federal GST rebate can provide up to $6,300 for qualifying new homes
• Ontario new housing rebate can provide up to $24,000 on the provincial portion of HST
• First-time home buyers may qualify for additional federal housing incentives introduced in recent housing affordability programs
• Rebates typically apply to newly built homes, substantially renovated homes, and some owner-built homes
• The home must generally be used as a primary residence
• Most rebate applications must be submitted within 2 years of the closing or possession date
• Some builders credit rebates directly at closing, while others require buyers to apply separately
• Eligibility rules, rebate amounts, and thresholds depend on purchase price and CRA requirements
• Condos, newly built homes, and substantially renovated properties may qualify
• Proper documentation is required, including purchase agreements and HST/GST details

What Is the GST/HST New Housing Rebate in Ontario?

Buying a new home in Ontario? You could save thousands with the GST rebate new home Ontario program. The government just made these rebates even better in 2025, especially for first-time buyers who can now save up to $50,000.

Understanding HST in Ontario vs Other Provinces

Ontario HST Breakdown:

• 13% overall (Federal GST at 5% plus provincial GST at 8%).
• GST refund: calculated using the federal component of 5%
• Provincial HST refund: Predicated on the province's 8% share
• What does this signify in Ontario?
• GST portion: Refund of up to $6,300 (based on a federal rate of 5%).
• Refund of up to $24,000 for the provincial HST part (based on an Ontario rate of 8%).
• Up to $50,000 in enhanced first-time buyer rebates (federal program; applies to GST part)

Federal GST Rebate

The federal portion of the rebate is based on the 5% GST charged on qualifying new homes.

• Maximum federal rebate: $6,300
• Full rebate generally applies to homes priced up to $350,000
• Partial rebate may apply for homes priced between $350,000 and $450,000
• Homes priced above $450,000 are generally not eligible for the federal GST rebate

Ontario New Housing Rebate

Ontario also offers a rebate on the provincial portion of HST.

Key points:

• Maximum Ontario rebate: $24,000
• Available even for homes priced above federal rebate thresholds
• Applies to the provincial 8% portion of HST
• Because Ontario housing prices are higher in many cities, the provincial rebate remains important for buyers purchasing homes in areas such as Toronto, Ottawa, Mississauga, Hamilton, and surrounding regions.

Here's what you can save:

• First-time buyers: Up to $50,000 on new homes valued up to $1.5 million ( in 2025)
• All buyers: Up to $6,300 GST rebate + $24,000 HST rebate = $30,300 total savings
• Partial rebates: Available for homes between price thresholds

Before making any big purchase decisions, get a free home equity report through Nuborrow to understand your property's true value and borrowing power.

First-Time Home Buyer HST Rebate Ontario

Federal housing affordability programs and proposed GST relief measures for first-time buyers have continued evolving in recent years.

However, eligibility criteria, rebate structures, and implementation timelines can change based on federal legislation and CRA administration.

Before relying on enhanced first-time buyer rebate amounts, buyers should:

• Verify current CRA rules
• Confirm eligibility with a mortgage professional or tax advisor
• Review builder agreements carefully

This is especially important because some proposed housing rebate expansions may not apply to every transaction type or province in the same way.

Who qualifies:

• Canadian residents
• Never owned a home anywhere in the world
• Buying a new or substantially renovated home
• Using the home as your primary residence
• The transaction meets CRA eligibility requirements

This initiative represents the government's commitment to making homeownership more affordable, which is expected to result in $3.9 billion in tax savings over a five-year.

How to Apply for the HST Rebate in Ontario (Step-by-Step)

Step 1: Check Your Eligibility

• Verify whether you are a first-time buyer to receive additional incentives
• Check if your house qualifies (new or significant renovation)
• Make sure the purchase price is within the rebate's limits

Step 2: Collect Your Documents

• Purchase agreement with the sale price at the end
• Developer's invoice including a breakdown of GST and HST
• Evidence of residency in Canada
• Details of the bank account used for direct deposit

Step 3: Choose the Right Forms

Improved rebate: Forms for new, first-time buyers Conventional rebate: GST part on Form GST190 plus provincial HST forms

Step 4: Submit Within Two Years

You can apply within two years of the date of possession. Don't hesitate; send as soon as possible to prevent processing delays. Missing deadlines may result in losing rebate eligibility.

GST New Housing Rebate 2025: What You Need to Know

The GST New Housing Rebate 2025 now offers two distinct programs:

Enhanced Program (First-Time Buyers Only):

• Up to $50,000 savings
• Homes valued up to $1.5 million
• Newly constructed homes only
• 6-10 week processing time

Traditional Program (All Buyers):

• Up to $6,300 GST rebate (homes under $450,000)
• Up to $24,000 HST rebate (homes under $400,000)
• 4-6 week processing time
• Resale homes don't qualify

Verify that the value of your house falls under these rebate criteria. You can use Nuborrow's free home equity evaluation and explore your financing options.

How Much Can You Actually Save?

Real Examples:

• $400,000 new home (first-time buyer):

Up to $50,000 enhanced rebate

• $350,000 new home (any buyer):

$30,300 in combined rebates

• $800,000 new home (first-time buyer):

$50,000 enhanced rebate

• $600,000 new home (any buyer):

No traditional rebates, but first-time buyers get $50,000

Common Mistakes to Avoid

• Missing the deadline – The two-year limit is firm
• Using the wrong forms – traditional and improved rebate applications differ
• Incomplete documentation – Missing papers delay the process
• Not coordinating – Some may offer incentives upon closing.
• Assuming you don't qualify – even qualified buyers don't apply

Frequently Asked Questions

Can I get both regular and enhanced rebates?

No, you get whichever offers the biggest savings. More is usually offered to qualified first-time buyers through enhanced incentives.

What if I've owned property outside Canada?

You are not eligible for enhanced rebates if you have previously owned anything, although you may still be eligible for standard rebates.

Do condos qualify?

Yes, both programs apply to freshly built ones.

Can I apply online?

Yes, the CRA website offers digital applications, which frequently process more quickly.

Final Thoughts

Ontario housing costs remain high, and every rebate opportunity matters. The GST/HST New Housing Rebate can help reduce upfront costs when purchasing a qualifying newly built home, condo, or substantially renovated property. Because eligibility rules and rebate structures can change, buyers should confirm current CRA requirements before applying. Planning ahead, understanding available rebates, and organizing documents early can make the process smoother and help avoid delays.

Talk to a Mortgage Expert Buying a new home in Ontario? Nuborrow helps first-time buyers and homeowners explore mortgage solutions, affordability options, and financing strategies in Ontario’s housing market. Speak with a Nuborrow mortgage expert today to explore your next steps.

About the Author

The Nuborrow content team specializes in Canadian mortgages, housing affordability, and first-time buyer education. Their content focuses on helping Canadians understand mortgage options, housing incentives, interest rate changes, and home financing strategies through clear, practical guidance aligned with current Canadian market conditions.

Disclaimer: Information based on current programs as of June 2025. Consult qualified professionals for advice specific to your situation.