The price of a newly built (or substantially renovated) home in Ontario includes 13% HST — 5% federal and 8% provincial. Several rebates can return part or all of it, depending on how you use the home, when you signed the agreement and whether you are a first-time buyer.
1. Homes you will live in (primary residence)
- GST/HST New Housing Rebate — available to any buyer who, or whose close relative, will live in the home as a primary residence. It returns up to $6,300 of the federal portion (full amount for homes up to $350,000, phasing out at $450,000) and up to $24,000 of Ontario's portion, regardless of price.
- First-Time Home Buyers' (FTHB) GST Rebate — law since March 2026. First-time buyers can recover the full 5% GST (up to $50,000) on new homes up to $1 million, with a reduced rebate up to $1.5 million. The agreement must be signed on or after March 20, 2025 and before 2031. You must be 18 or older and a Canadian citizen or permanent resident, and neither you nor your spouse can have lived in a home you owned in the current year or the previous four years.
- Ontario's temporary enhanced rebate — for agreements signed between April 1, 2026 and March 31, 2027, Ontario (with a federal top-up) provides up to $130,000 of HST relief on new homes: the full HST on homes up to $1 million, the $130,000 maximum up to $1.5 million, reducing to $24,000 at $1.85 million and above. It is not limited to first-time buyers.
In most cases the builder credits these rebates at closing; otherwise you apply to the CRA.
2. New homes you rent out (investment property)
- New Residential Rental Property Rebate (NRRPR) — if you buy a new home and rent it to a tenant as their primary residence for at least one year, you can claim similar amounts to the standard rebate (up to $6,300 federal and $24,000 Ontario). You pay the full HST at closing and apply to the CRA yourself, with supporting documents such as the lease.
- Ontario's temporary enhanced rebate also covers qualifying new rental properties for agreements signed between April 1, 2026 and March 31, 2027.
- The First-Time Home Buyers' GST Rebate does not apply to rental properties.
Things to watch
- Eligibility depends on the agreement date, the price, who lives in the home and who is on title — adding a parent to title, for example, can affect the rebate.
- Rebates have filing deadlines, generally two years after closing or after the tax was paid.
- Keep the agreement of purchase and sale, the statement of adjustments and proof of occupancy or the lease.
If you're unsure which rebate applies to your situation, we're here to help.