Status as of May 2026: Only the federal portion of the new rebate (the First-Time Home Buyers’ GST Rebate) has received Royal Assent and is currently claimable. Ontario’s matching provincial rebate and the broader Temporary Universal HST Relief have been announced and proposed in legislation, but have not yet been enacted. Figures in this article reflect the maximum potential rebates if all proposed measures pass into law. We’ll update this post as legislation moves forward.
Buying a new build in Ontario comes with a hidden cost: 13% HST.
On a $1 million home, that is $130,000 in tax. Under current and proposed Ontario rebate programs, qualifying buyers may eventually claim back a substantial portion, or potentially all of that tax.
This guide covers the HST rebate for a new home in Ontario, the new First-Time Home Buyers’ GST Rebate, and how both apply to buyers working with a Paul Rushforth real estate agent.
With CMHC estimating that Canada needs between 430,000 and 480,000 housing units per year through 2035 to restore affordability, more buyers will face HST, and more will qualify for rebates.
Table of Contents
What Is the HST Rebate on a New Home?
In Ontario, new construction is subject to 13% HST, which combines 5% federal GST and 8% provincial HST. The First-time home buyers’ GST/HST rebate exists to offset part of that tax for buyers who intend to use the home as their primary residence.
Two components can apply at once:
- Legacy Federal GST/HST New Housing Rebate
- Legacy Ontario New Housing Rebate
- Federal First-Time Home Buyers’ GST Rebate (in force as of March 12, 2026)
- Ontario First-Time Home Buyers’ Provincial Match (proposed, not yet enacted)
- Temporary Universal HST Relief (proposed, not yet enacted)
Neither is automatic. Both are claimed through the builder at closing or directly with the Canada Revenue Agency (CRA).
How Much Can You Get Back?
Currently, Ontario buyers are working within three overlapping tax rebate programs.
Which tier applies to you depends on who you are and when you sign your Agreement of Purchase and Sale (APS).
| Tier | Timeline | Combined Max | Federal Max | Provincial Max |
|---|---|---|---|---|
| Legacy | Active since before March 20, 2025 | $30,300 | $6,300 | $24,000 |
| First-Time Home Buyer | Active since March 12, 2026, but applies retroactively from March 20, 2025 | $130,000 | $50,000 | $80,000 |
| Temporary Universal HST Relief | Active since April 1, 2026 | $130,000 | $50,000 | $80,000 |
Note: Amounts listed above are the maximum rebates. The total rebate you qualify for depends on your situation and home purchase.
The Legacy Rebate
This pre-existing program is still the default when neither of the newer tiers applies. For example, an APS signed before March 20, 2025, or a non-first-time buyer who signed before April 1, 2026.
The federal portion returns 36% of the GST, capped at $6,300 on a $350,000 home and dropping to zero above $450,000. Meanwhile, the Ontario portion returns 75% of the provincial HST and is capped at $24,000 (reached at $400,000).
One critical point many buyers and even some agents get wrong: the Ontario $24,000 rebate has no upper price cap. It applies even on a $1 million or $2 million home, regardless of what tier you fall into.
Federal First-Time Home Buyers’ GST Rebate
Active since Royal Assent of Bill C-4 on March 12, 2026. This rebate returns all of the 5% federal GST (up to $50,000) on homes priced up to $1 million; reducing proportionately as the price exceeds $1 million before becoming zero at $1.5 million.
It applies to first-time buyer agreements signed on or after March 20, 2025. This is the main new rebate that’s actually claimable today. The recent update of Ontario’s $80,000 rebate adds on top, for a combined maximum of $130,000.
A few caveats. Assignment purchases where the original agreement was signed before March 20, 2025, do not qualify. Buyers who closed between March 20, 2025, and March 12, 2026, must apply directly to CRA because builders couldn’t credit the rebate before Royal Assent.
Temporary Universal HST Relief
This is the program that matters most for anyone signing an APS today.
Active since April 1, 2026, it can remove the full 13% HST (up to $130,000) on new homes priced to $1 million. It maintains that maximum through $1.5 million, then reduces to the legacy $24,000 above $1.85 million.
However, this tier applies to all buyers: repeat buyers, downsizers, and investors of long-term rental properties qualify if they meet the criteria. Eligibility requires the APS to be signed between April 1, 2026, and March 31, 2027.
CMHC’s Housing Market Outlook projects that Ontario home prices will continue to fall in 2026, especially in the most expensive urban centres, before recovering in 2027, making this a strong window for first-time buyers to act.
Do You Qualify? Key Eligibility Rules
Primary Residence Requirement
The home must be your (or a qualifying relation’s) primary place of residence. CRA looks at mailing address, tax returns, driver’s licence, and utility bills. Your intent at the time of signing is what matters.
Who Counts as a “Qualifying Relation”?
Spouses, common-law partners, former spouses, parents, grandparents, children, grandchildren, and siblings qualify. However, aunts, uncles, cousins, nieces, nephews, and fiancé(e)s do not.
This distinction has triggered clawbacks exceeding tens of thousands when a non-qualifying co-signer held even a 1% interest.
First-Time Buyer Definition (for the new FTHB Rebate)
You must be at least 18, a Canadian citizen or permanent resident, and you (or your spouse or common-law partner) must not have occupied an owned home as a primary residence in the current year or the preceding four calendar years, anywhere in the world. It is a once-per-lifetime benefit, claimed once per couple.
Investors / Rental Properties
Investors do not qualify for this rebate.
However, an available alternative is the New Residential Rental Property Rebate (NRRP), with the same dollar amounts, but it requires a lease of at least one year and is filed directly with CRA.
How the Rebate Works at Closing
For most new builds, the builder credits the rebate against the purchase price at closing, so you do not receive a cheque. You sign Form GST190 and RC7190-ON for the Ontario portion, and the builder remits them to CRA on your behalf.
If the builder does not credit the rebate, you have up to two years from the date of ownership transfer to file directly with CRA.
Common Mistakes That Cost Buyers Their Rebate
- Listing a co-signer who does not qualify as a “relation” (e.g., an uncle or cousin) can deny the entire rebate
- Treating the Ontario rebate as if it has an upper price cap (it does not)
- Assuming investors qualify (the NRRP is the alternative)
- Renting to a tenant before occupying the home permanently voids the New Housing Rebate
- Missing the two-year CRA filing deadline
- Not knowing the FTHB rebate exists or applies retroactively to March 2025
- Assuming the full $130,000 rebate is currently available (the provincial portion has not yet been enacted)
New Build Homes Available in Ottawa
Paul Rushforth currently represents three new-build communities east of Ottawa, each at a price point where the federal GST rebate is available now, and where additional provincial rebates would stack on top if and when the proposed legislation passes.
Domaine du Golf in Rockland
Luxury new build condos set directly on the Rockland Golf Course, featuring stunning fairway views, modern open-concept interiors, and large windows that frame the lush green surroundings, starting at $439,900.
Available now: Eligible first-time buyers can claim the full 5% federal GST back (approximately $21,995) plus a portion of the legacy Ontario rebate.
If proposed measures pass: Eligible buyers may qualify for the full 13% HST back, saving up to $57,187.
Golf Ridge in Rockland
Three-bedroom, two-bathroom townhomes in the sought-after Rockland Golf Course community, featuring open-concept layouts, hardwood flooring, granite kitchen counters, and durable concrete construction, starting at $499,900.
Available now: Eligible first-time buyers can claim the full 5% federal GST back (approximately $24,995) plus the legacy Ontario rebate of up to $24,000.
If proposed measures pass: At this price, eligible buyers can claim the full HST, up to approximately $64,987 in savings.
Southwest Park in Russell
Three-bedroom open-concept townhomes by Clement Homes in the village of Russell, with hardwood floors, granite counters, concrete construction, and private backyards, starting at $504,900.
Available now: Eligible first-time buyers can claim the full 5% federal GST back (approximately $25,245) plus the legacy Ontario rebate of up to $24,000.
If proposed measures pass: This translates to roughly $65,637 in money saved for eligible buyers who qualify for the full 13% HST relief.
Work With a Paul Rushforth Agent on Your New Build Purchase
Many buyers assume they don’t need an agent when purchasing from a builder. That’s a mistake.
The builder’s representative works for the builder, not for you.
A Paul Rushforth buyer’s agent:
- Ensures your purchase structure protects rebate eligibility
- Flags co-signer risks and timing issues
- Helps you maximize available rebates as new programs come into force
- Keeps you informed as the proposed provincial and universal rebates move through the legislative process
Before you sign a new build agreement, make sure your rebate eligibility is protected. A quick review before you sign can mean the difference between a standard rebate and maximizing your full eligibility.