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Talking Points
The Ontario government has clarified details regarding the Enhanced New Housing Rebate, which allows individuals to recover HST on new home purchases. This rebate applies to homes purchased from builders or those built by the owner, with specific eligibility criteria and timelines.
- The enhanced rebate permits recovery of up to $80,000 of the provincial HST for new or substantially renovated homes.
- Eligibility includes homes purchased from builders or owner-built homes, with construction starting between April 1, 2026, and March 31, 2027.
- Homes must serve as the primary residence for the individual or their relation to qualify for the rebate.
This update is significant for homebuyers and builders in Ontario, as it provides financial relief and encourages new housing development in the province.
The Ontario government has issued clarification on several aspects of the Enhanced New Housing Rebate that returns the HST on new home purchases. Here are key updates of interest to renovators and custom builders.
Unless noted otherwise, the new HST rebates follow the same eligibility and process as the old HST rebates
“The enhanced Ontario New Housing Rebate or New Residential Rental Property Rebate would generally apply to the same types of housing and follow the same eligibility conditions as the existing GST/HST New Housing Rebate and GST/HST New Residential Rental Property Rebate, subject to some additional conditions described in this backgrounder to reflect the temporary nature of the enhancements.
“As is the case with Ontario’s existing NHR, situations in which an individual may be eligible for the enhanced Ontario NHR include:
“Eligible home types generally include a detached or semi-detached single unit house, a duplex, a residential condominium unit, a townhouse, a rowhouse, a unit in a cooperative housing corporation, a mobile home(including a modular home), and a floating home.
“As is the case with Ontario’s existing NHR, the enhanced Ontario NHR is only applicable to homes for use as the individual’s primary place of residence or the primary place of residence of a “relation” of the individual.”
New homes purchased from builders qualify for the rebate
“The enhanced Ontario NHR would allow an individual to recover up to $80,000 of the provincial portion of the HST paid in respect of a new or substantially renovated home purchased from a builder.
“If an individual would otherwise qualify for Ontario’s existing NHR in respect of a home purchased from a builder, the enhanced Ontario NHR would generally be available if:
- the agreement of purchase and sale for the home was entered into between the individual and the builder on or after April 1, 2026, and on or before March 31, 2027; and
- the construction or substantial renovation of the home
Owner-built homes qualify
The enhanced Ontario NHR would allow an individual to recover up to $80,000 of the provincial portion of the HST they paid to build a home on land they own or lease or to substantially renovate their home.
If an individual would otherwise qualify for Ontario’s existing NHR in respect of an owner-built home, the enhanced Ontario NHR would generally be available if the construction or substantial renovation of the home:
- begins on or after April 1, 2026, and on or before March 31, 2027; and
- is substantially completed on or before December 31, 2029.