Eligibility & Timeline

• Temporary enhanced rebate generally applies to qualifying agreements of purchase and sale entered into with a builder from April 1, 2026 through March 31, 2027.
• Maximum combined HST relief can reach $130,000 on an eligible new home valued at $1,000,000.
• For eligible homes up to $1,000,000, the combined relief can equal the full 13% HST.
• For homes above $1,000,000, relief is reduced as the price increases; the enhanced provincial relief is fully phased out by $1,850,000, while the existing Ontario rebate may still provide up to $24,000 where otherwise eligible.
• The enhanced Ontario rebate itself can recover up to $80,000 of the 8% provincial portion of HST.
• The measure is not limited to first-time buyers. It can apply to qualifying repeat buyers and qualifying residential rental-property purchasers, subject to the applicable rebate rules.

Construction & Completion Deadlines

• For a qualifying home purchased from a builder for use as a primary residence, construction or substantial renovation must begin on or before December 31, 2028.
• The home must be substantially completed on or before December 31, 2031.
• For assignment sales, both the original agreement with the builder and the assignment agreement must generally be entered into between April 1, 2026 and March 31, 2027.
• Different completion rules can apply to rental-property and owner-built claims, so the specific transaction should be reviewed before relying on a deadline.​

• The federal first-time home buyers’ GST/HST rebate can provide relief of the 5% federal GST portion on qualifying new homes.
• For eligible first-time buyers, full federal relief is available on qualifying homes up to $1,000,000, with the rebate phased out between $1,000,000 and $1,500,000.
• First-time-buyer eligibility includes a prior-home-ownership test; the purchaser generally must not have lived in a home they owned, or that their spouse/common-law partner owned, during the relevant prior period.
• Ontario first-time buyers may potentially combine applicable federal and Ontario relief, subject to the rules and maximums for each program.
• Agreements signed before April 1, 2026 can fall under different federal/ provincial rebate rules than agreements signed during the enhanced Ontario window.

• A builder may structure the purchase price on the assumption that the buyer qualifies for and assigns or transfers the applicable rebate to the builder at closing.
• Example: A $700,000 pre-rebate value can generate up to $91,000 of 13% HST relief under the enhanced measures, depending on eligibility and how the agreement states the price.
• The agreement and the builder’s worksheet should clearly show the base price, HST, rebates/credits and the final amount payable.
• HST schedules in builder agreements can be complex. Buyers should obtain the builder’s written calculation and have the agreement reviewed by a real-estate lawyer.
• Land Transfer Tax treatment depends on the legal ‘value of the consideration’ under Ontario law; buyers should rely on their lawyer’s closing calculation rather than assuming that a rebate amount automatically changes the LTT base.

• The buyer may have to pay the full amount required by the builder at closing and apply to the CRA for the rebate afterward.
• This can create a significant temporary cash requirement, potentially tens of thousands of dollars.
• Example from the source material: a buyer may pay the builder’s full stated contract amount at closing and later apply to recover the eligible HST rebate.
• For a rental-property purchase, the purchaser normally needs to satisfy the applicable new residential rental property rebate requirements, including the intended rental use and supporting documentation.
• The builder should provide a worksheet explaining the HST and rebate treatment even where the rebate is not credited at closing.

• The buyer is responsible for ensuring that the eligibility requirements are met.
• If a builder credits a rebate and the buyer is later found ineligible, the CRA can require repayment. In some circumstances, the builder and buyer may be jointly and severally liable.
• If timing requirements are missed — for example, construction begins or completion occurs outside the permitted window — enhanced-rebate eligibility may be lost.
• For new-construction purchases, consider having the lawyer review whether the agreement protects the buyer if a builder-caused delay results in the loss of an expected rebate.
• Any proposed clause giving the buyer a credit, cancellation right or deposit refund must actually be negotiated into the agreement; it is not an automatic statutory entitlement merely because the rebate is lost.

• Use the CRA form applicable to the particular type of claim, such as a builder-purchased home, owner-built home or residential rental property.
• Keep the signed Agreement of Purchase and Sale, statements of adjustments, builder rebate/HST worksheets, proof of occupancy or rental use, leases where applicable, and other supporting documents.
• Incomplete or inconsistent paperwork can delay processing or lead to additional CRA questions.
• For complicated transactions, assignments, investment properties or unusual occupancy arrangements, professional tax or legal advice is recommended before closing.
• CRA processing of enhanced Ontario rebate applications began only after required system changes; processing times can vary and the CRA may request additional information.

• Confirm whether the home and the purchaser qualify for the specific rebate being relied upon.
• Confirm the agreement-signing date and applicable construction/completion deadlines.
• Ask the builder for a written HST/rebate worksheet before committing to the purchase.
• Determine whether the rebate is being credited by the builder at closing or claimed by the buyer afterward.
• Confirm the cash required on closing if the rebate is not credited.
• Have a real-estate lawyer review the Agreement of Purchase and Sale, HST schedules, assignment provisions and any rebate-protection clauses.
• For an investment property, confirm the rental-rebate rules and documentation requirements before closing.
• Do not rely solely on marketing material or an estimated online calculator for the final rebate or Land Transfer Tax calculation.

Important Note

HST rebate rules are technical and depend on the wording of the purchase agreement, dates, purchase price, occupancy/rental use and other facts. A real-estate lawyer or tax professional should confirm eligibility and closing calculations for a specific transaction.

Expert guidance for first-time buyers, growing families, and homeowners ready to simplify.