Buying a newly built home in Ontario can involve a significant amount of HST.
In 2026, Ontario introduced the Ontario Enhanced New Housing Rebate (ENHR), a temporary program designed to provide additional relief from the 8% provincial portion of HST on qualifying new or substantially renovated homes.
For eligible buyers, the Ontario ENHR, together with the existing Ontario New Housing Rebate, can provide up to $80,000 of relief from the provincial portion of HST.
And importantly, you do not necessarily have to be a first-time home buyer to qualify for the Ontario ENHR.
The program is particularly important for buyers purchasing:
New detached homes
New townhouses
New semi-detached homes
New condominiums
Pre-construction homes
Qualifying substantially renovated homes
However, the program is temporary, and strict agreement-date, construction, price and occupancy requirements apply.
What Is the Ontario Enhanced New Housing Rebate?
The Ontario Enhanced New Housing Rebate (ENHR) is a temporary enhancement to Ontario's existing New Housing Rebate.
The purpose is to provide relief from the 8% provincial portion of HST on qualifying new homes and substantially renovated homes in Ontario.
The ENHR works together with the existing Ontario New Housing Rebate to provide eligible individuals with combined provincial HST relief of up to $80,000.
This is an important distinction:
The $80,000 is the maximum combined Ontario provincial rebate — it is not an additional $80,000 on top of every existing Ontario rebate.
For example, the traditional Ontario New Housing Rebate can provide up to $24,000. The enhanced program increases the potential combined provincial relief to as much as $80,000 for qualifying homes.
Is the Ontario ENHR Only for First-Time Home Buyers?
No.
This is one of the most important differences between the Ontario ENHR and the federal First-Time Home Buyers' GST/HST Rebate.
The Ontario ENHR can be available to an individual who purchases or builds a qualifying new or substantially renovated home for use as their own or their relation's primary place of residence.
You do not necessarily have to be a first-time buyer to qualify.
The CRA states that the ENHR generally follows the eligibility requirements of the existing Ontario New Housing Rebate.
So a buyer who has previously owned a home may potentially qualify for the Ontario ENHR, provided all other requirements are satisfied.
How Much Is the Ontario Enhanced New Housing Rebate?
The maximum combined Ontario provincial rebate is:
Up to $80,000
The amount depends primarily on the value of the qualifying home.
The current CRA framework is:
New Home Value | Potential Ontario ENHR |
|---|---|
Up to $1,000,000 | Up to $80,000 |
More than $1,000,000 to $1,500,000 | Up to $80,000 |
More than $1,500,000 but less than $1,850,000 | Partial rebate |
$1,850,000 or more | No ENHR; regular Ontario rebate may still apply |
For homes valued at $1 million or less, the eligible buyer can recover 100% of the provincial 8% HST, up to the $80,000 maximum.
For homes above $1 million and up to $1.5 million, the ENHR provides a flat maximum of $80,000.
For homes above $1.5 million but below $1.85 million, the rebate is gradually reduced.
At $1.85 million or more, the ENHR is no longer available, although the existing Ontario New Housing Rebate of up to $24,000 may still be available where the buyer qualifies.
Example: A $1 Million New Home
Let's look at a simple Ontario example.
Suppose you purchase a qualifying new home for:
Purchase price: $1,000,000
Ontario HST is 13%.
The provincial portion is:
8% × $1,000,000 = $80,000
Under the Ontario ENHR framework, an eligible purchaser could potentially recover the entire $80,000 provincial portion, subject to the program requirements.
That means the potential Ontario provincial HST relief could be:
$80,000
This does not mean the buyer receives $80,000 on top of every other HST rebate.
The total Ontario rebates relating to the 8% provincial portion cannot exceed the lesser of:
$80,000, or
the actual 8% provincial HST payable.
What Happens to the Existing $24,000 Ontario Rebate?
This is where many buyers get confused.
The existing Ontario New Housing Rebate can provide up to $24,000.
The new ENHR increases the potential combined Ontario relief to $80,000.
Therefore, it is incorrect to say:
$24,000 existing rebate + $80,000 ENHR = $104,000 Ontario rebate.
That is not how the program works.
Instead, the total provincial relief is capped at:
$80,000
subject to the actual provincial HST payable.
Think of the ENHR as an enhancement/top-up to the Ontario new housing rebate, rather than another independent $80,000 cheque.
What If I Am a First-Time Home Buyer?
This is where things become even more interesting.
An eligible first-time buyer may also qualify for the Ontario First-Time Home Buyers' Rebate.
CRA states that where an individual is eligible for both the Ontario ENHR and the Ontario FTHB rebate, they can claim either or both.
However:
The total of all Ontario rebates for the 8% provincial portion cannot exceed the lesser of $80,000 and the provincial HST payable.
Therefore, the buyer does not receive $80,000 ENHR plus another $80,000 Ontario first-time-buyer rebate.
The programs are subject to the same overall provincial cap.
What Is the Ontario New Home Affordability Payment?
There is another important 2026 program that buyers should understand.
An individual who qualifies for the Ontario ENHR may also qualify for the:
Ontario New Home Affordability Payment (ONHAP)
The ONHAP is administered by the Province of Ontario, rather than being another CRA rebate.
It can provide up to:
$50,000
This amount is designed to be equivalent to up to 100% of the 5% federal portion of HST on a qualifying new or substantially renovated home.
However, there is a very important interaction with the federal First-Time Home Buyers' GST/HST Rebate.
The ONHAP is reduced by the federal portion of any GST/HST New Housing Rebate or First-Time Home Buyers' GST/HST Rebate to which the buyer is entitled.
If the buyer qualifies for the federal FTHB GST/HST rebate, that federal rebate is considered first when determining the ONHAP.
So again, buyers should not simply add:
$80,000 Ontario ENHR + $50,000 ONHAP + $50,000 federal FTHB
and assume they will receive $180,000.
The programs interact with one another.
Is the Ontario ENHR Available for Pre-Construction?
Yes, potentially.
This is particularly important for GTA buyers.
For a home purchased from a builder, the Ontario ENHR generally applies where the Agreement of Purchase and Sale was entered into on or after April 1, 2026 and on or before March 31, 2027.
Additional requirements must also be met.
For example:
Construction must begin on or before December 31, 2028.
Construction must be substantially completed on or before December 31, 2031.
The applicable consideration must be less than $1.85 million.
HST on the supply must become payable on or before December 31, 2032.
The property must be acquired for use as the purchaser's or their relation's primary residence.
This makes the program particularly relevant to buyers signing new pre-construction agreements in 2026 and early 2027.
What About a $1.2 Million Pre-Construction Home?
This is an interesting example.
Suppose you purchase a qualifying new home for:
$1,200,000
The provincial portion of HST is approximately:
8% × $1,200,000 = $96,000
The ENHR provides a maximum combined provincial rebate of:
$80,000
Therefore, assuming all eligibility requirements are satisfied, the provincial rebate is capped at:
$80,000
The buyer does not receive 8% of the entire purchase price as an unrestricted rebate because the program has an $80,000 maximum.
What About a $1.6 Million Home?
The rules change once the home exceeds $1.5 million.
For qualifying homes:
More than $1.5 million but less than $1.85 million
the ENHR becomes a partial rebate.
At:
$1.85 million or more
there is no Ontario ENHR.
However, the buyer may still qualify for the regular Ontario New Housing Rebate, which can provide up to $24,000 in appropriate circumstances.
Therefore, buyers purchasing higher-priced new homes should have the rebate calculated specifically for their transaction rather than assuming the $80,000 maximum.
Who Can Qualify?
The Ontario ENHR may be available to individuals who:
Purchase a new home from a builder.
Purchase a substantially renovated home.
Purchase a qualifying residential condominium unit.
Purchase a qualifying share in a cooperative housing corporation.
Build their own qualifying home.
Substantially renovate their own home.
The home must generally be acquired for use as the individual's or their relation's primary place of residence.
This means the ENHR is not simply a rebate for purchasing an investment property.
Can I Buy a Condo and Qualify?
Yes, potentially.
The CRA specifically states that the Ontario ENHR can apply to the purchase of a residential condominium unit from a builder, provided the applicable requirements are met.
This is particularly relevant to:
Toronto pre-construction condos
Brampton condos
Mississauga condos
Milton condos
Vaughan condos
Oakville condos
Other GTA new-build condominium projects
But the condo must satisfy the applicable residential and primary-residence requirements.
What About Assignment Sales?
Buyers involved in an assignment transaction should be especially careful.
For an assignment sale to qualify for the Ontario ENHR:
Both the original Agreement of Purchase and Sale and the assignment agreement must generally be entered into between April 1, 2026 and March 31, 2027.
All other eligibility requirements must also be met.
This is an area where buyers should obtain professional advice before assuming that an assignment automatically qualifies.
What If I Signed Before April 1, 2026?
This is extremely important.
If you entered into your Agreement of Purchase and Sale with a builder before April 1, 2026, subsequently changing, varying or assigning the agreement does not necessarily make you eligible for the ENHR.
CRA specifically states that certain agreements originally entered into before April 1, 2026 can remain treated as pre-April 1 agreements for ENHR purposes.
In that situation, you may still qualify for the existing Ontario New Housing Rebate or potentially the Ontario First-Time Home Buyers' Rebate, depending on your circumstances.
So:
Changing an old agreement after April 1, 2026 does not automatically make it an ENHR-qualified agreement.
What If I Cancel My Old Agreement and Sign a New One?
Be careful.
CRA has specific anti-avoidance rules for agreements terminated and replaced after April 1, 2026.
In certain circumstances, a new agreement may still be treated as having been entered into before April 2026.
The purpose is to prevent buyers from simply cancelling an old contract and entering a new contract primarily to obtain the ENHR.
This is particularly important in the pre-construction market.
Can the Builder Credit the Rebate?
Yes.
For qualifying purchases from a builder, the builder may pay or credit the Ontario ENHR to the buyer.
The builder can potentially credit the applicable rebate against the amount payable on closing.
The purchaser and builder must complete the applicable rebate documentation.
The CRA currently identifies:
Form GST190
and
Form RC7190-ON
for the relevant new housing rebate applications.
If the builder pays or credits the rebate, the builder generally submits the required documentation to CRA.
What If the Builder Does Not Credit the Rebate?
If the builder does not pay or credit the ENHR, the eligible buyer can generally apply directly to CRA.
CRA states that buyers generally have up to two years from the date ownership or possession was transferred to claim the applicable rebate.
Currently, applications involving the Ontario ENHR are filed by mail while CRA completes its system implementation. CRA says online filing is expected to become available in fall 2026.
Important: Check Your Statement of Adjustments
Before assuming you are entitled to a rebate, review your:
Agreement of Purchase and Sale
Statement of Adjustments
Builder's HST calculations
Rebate credits
Closing statement
GST/HST rebate forms
A builder may already have incorporated a rebate into the purchase price or closing adjustments.
CRA specifically warns buyers to confirm that they have not already received the rebate before submitting another claim.
What Happens If I Receive a Rebate I Wasn't Entitled To?
This is very important.
The buyer is responsible for ensuring that they qualify.
If a builder pays or credits an ENHR amount to a buyer who is not actually entitled to it, the buyer can be required to repay the amount to CRA.
CRA also states that where a builder knew or ought to have known that the buyer was not entitled to the rebate, or that the amount credited exceeded the buyer's entitlement, the builder and buyer can be jointly and severally liable for repayment.
Therefore:
Do not assume that a rebate shown on a builder's closing statement is automatically guaranteed.
Confirm your eligibility.
Ontario ENHR vs. Ontario First-Time Buyer Rebate
These two programs are easy to confuse.
Feature | Ontario ENHR | Ontario FTHB Rebate |
|---|---|---|
First-time buyer required? | No | Yes |
Maximum provincial relief | Up to $80,000 | Up to $80,000 |
Applies to new homes? | Yes | Yes |
Applies to qualifying substantial renovations? | Yes | Yes, subject to rules |
Primary residence required? | Generally yes | Yes |
Temporary 2026 program? | Yes | Separate program |
Can both apply? | Potentially | Potentially |
Combined Ontario provincial maximum | $80,000 | $80,000 |
The critical point is that an eligible person who qualifies for both does not get $80,000 + $80,000.
The combined Ontario provincial rebate cannot exceed the applicable $80,000 maximum and the actual 8% provincial HST payable.
Ontario ENHR vs. Federal First-Time Buyer Rebate
The federal program is different again.
The federal First-Time Home Buyers' GST/HST Rebate relates to the 5% federal portion of HST and is specifically targeted at eligible first-time buyers.
The Ontario ENHR relates to the 8% provincial portion.
For an eligible buyer, these programs can potentially work together, but the interaction with the Ontario New Home Affordability Payment (ONHAP) must also be considered.
This is why the total benefit should be calculated based on the buyer's individual circumstances rather than simply adding all maximum advertised amounts.
A Simple Ontario HST Example
Imagine a qualifying:
$1,000,000 new home
HST at 13%:
$130,000
Breakdown:
5% federal portion = $50,000
8% Ontario portion = $80,000
Potential Ontario ENHR:
Up to $80,000
Potential ONHAP:
Up to $50,000
But if the buyer also qualifies for the federal FTHB GST/HST rebate, the federal rebate affects the amount of ONHAP available.
Therefore, you should not simply calculate:
$80,000 + $50,000 + $50,000 = $180,000
The programs have specific interaction rules.
What Does This Mean for GTA Buyers?
For someone looking at a new home in:
Brampton • Mississauga • Milton • Caledon • Georgetown • Oakville • Burlington • Vaughan • Toronto
the Ontario ENHR could significantly change the economics of buying new construction.
For example, a buyer comparing:
$1,000,000 resale home
against
$1,000,000 new construction home
should not simply compare the two purchase prices.
The HST and applicable rebates can materially change the effective cost of the new property.
This is especially important when comparing pre-construction condos and townhomes with resale properties.
10 Questions to Ask Before Buying a New Home in Ontario
Before signing a new-home or pre-construction Agreement of Purchase and Sale, ask:
1. Does my agreement qualify for the Ontario ENHR?
2. What is the property's value for rebate purposes?
3. How much provincial HST will I actually pay?
4. Is the existing $24,000 Ontario New Housing Rebate already included?
5. Will the builder credit the ENHR at closing?
6. Am I eligible for the federal First-Time Home Buyers' GST/HST Rebate?
7. Am I eligible for the Ontario First-Time Home Buyers' Rebate?
8. Am I eligible for the Ontario New Home Affordability Payment?
9. What happens if CRA later determines that I was not eligible?
10. How much cash will I actually need on closing day?
These questions can potentially save a buyer tens of thousands of dollars in unexpected closing costs.
The Biggest Takeaway
The Ontario Enhanced New Housing Rebate is not just another first-time home buyer rebate.
It is a broader temporary program that can provide eligible purchasers of qualifying new or substantially renovated Ontario homes with up to $80,000 of combined relief on the provincial 8% portion of HST.
The program generally applies to qualifying builder agreements entered into between:
April 1, 2026 and March 31, 2027
subject to additional construction, price, occupancy and other requirements.
For homes purchased from a builder, the ENHR can apply to qualifying new houses and residential condominium units.
And because the program can potentially work alongside federal first-time-buyer relief and the Ontario New Home Affordability Payment, understanding the entire HST calculation is more important than simply looking at one rebate number.
Thinking About Buying a New Home or Pre-Construction in Ontario?
Before you sign, ask for a complete calculation showing:
Purchase Price
+ HST
− Ontario New Housing Rebate
− Ontario Enhanced New Housing Rebate
− Federal FTHB GST/HST Rebate, if applicable
− Ontario New Home Affordability Payment, if applicable
= Your potential net HST/closing cost
The exact calculation depends on your circumstances and the applicable programs.
If you're buying a pre-construction condo, townhouse or new detached home in Brampton, Mississauga, Milton, Caledon or the GTA, understanding these rebates before signing your Agreement of Purchase and Sale could make a major difference to your closing budget.
Frequently Asked Questions
Is the Ontario Enhanced New Housing Rebate only for first-time buyers?
No. The ENHR is not restricted to first-time buyers. It generally follows the Ontario New Housing Rebate eligibility rules and can be available to qualifying purchasers using the home as their or their relation's primary residence.
How much is the Ontario ENHR?
The ENHR, together with the existing Ontario New Housing Rebate, can provide up to $80,000 of relief from the 8% provincial portion of HST on a qualifying home.
Is the $80,000 in addition to the existing $24,000 Ontario rebate?
No. The total Ontario rebates for the 8% provincial portion cannot exceed the lesser of $80,000 or the provincial HST payable.
Does it apply to pre-construction?
Potentially, yes. For builder purchases, the Agreement of Purchase and Sale generally must be entered into between April 1, 2026 and March 31, 2027, with additional construction and other requirements.
Does it apply to condos?
Yes. Qualifying residential condominium units purchased from a builder can qualify, subject to the applicable requirements.
Can I get the Ontario ENHR and the first-time buyer rebate?
Potentially. However, the total Ontario provincial rebate for the 8% portion cannot exceed $80,000 or the applicable provincial HST payable, whichever is less.
Is there another $50,000 benefit?
Potentially. An eligible ENHR claimant may also qualify for the Ontario New Home Affordability Payment (ONHAP) of up to $50,000. However, ONHAP is reduced by applicable federal GST/HST rebates, including the federal first-time home buyers' GST/HST rebate.
Can the builder give me the rebate at closing?
Yes. A builder may pay or credit eligible rebates, including the ENHR and ONHAP where applicable, subject to the program requirements and documentation.
Final Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, accounting, financial or real estate advice. The Ontario Enhanced New Housing Rebate, Ontario New Housing Rebate, Ontario First-Time Home Buyers' Rebate, federal GST/HST rebates and Ontario New Home Affordability Payment each have specific eligibility requirements and may interact with one another. Buyers should confirm their eligibility with the Canada Revenue Agency and/or the Province of Ontario and obtain professional advice based on their individual circumstances.
Official source: Canada Revenue Agency — Ontario Enhanced New Housing Rebate
CRA Notice 346 — detailed 2026 rules: CRA Notice 346: Ontario Enhanced New Housing Rebate