Understanding Ontario’s New HST Rebates for New Homes (2026 Guide)

For many Ontarians, buying a home remains one of life’s biggest milestones, and one of its biggest financial commitments. As home affordability remains a challenge, both the federal and Ontario governments have introduced new HST rebate measures to help reduce the cost of purchasing a qualifying new home.

While the updated rebate rules may seem complicated at first, understanding how they work can lead to significant savings for eligible purchasers.

This guide explains the new HST rebate rules in straightforward terms, including who may qualify, how much could be available, and how the rebate is typically applied when buying a newly built home.

Please note: This article provides general information only. Eligibility depends on your individual circumstances, and purchasers should always confirm their eligibility with their lawyer, accountant or qualified tax professional before relying on any rebate amount.

What’s New With Ontario’s HST Rebates in 2026?

For years, purchasers of qualifying new homes have been able to claim GST/HST rebates that helped offset part of the tax paid on a new home. However, previous rebate programs often provided less relief than the enhanced measures introduced in 2026.

To help improve housing affordability, the federal and Ontario governments expanded HST relief for eligible purchasers in 2026.

Now, there are two primary rebate programs that can provide HST relief to eligible purchasers when buying a qualifying new home:

• First-Time Home Buyers’ GST/HST Rebate: Available to eligible first-time home buyers.
• Enhanced HST Rebate for New Primary Residences: Available to eligible repeat buyers purchasing a qualifying new home as their primary residence.

These updated programs increase the amount of HST relief available on many qualifying new homes, helping reduce the overall cost of homeownership for eligible purchasers.

*Subject to eligibility and current legislation.

Who May Qualify?

Eligibility depends on which rebate program applies, but both programs share many core requirements.

In general, eligible purchasers should also be aware that:

• The home must be intended as a primary residence for the purchaser or a qualifying relation.
• Eligibility depends on the agreement of purchase and sale, construction timelines and other program requirements.
• Different rules may apply to owner-built homes and substantially renovated homes.
• Changes to the purchasers named on the agreement or the intended use of the home may affect eligibility.

We recommend reviewing your specific circumstances with your lawyer before closing.

How Much Could You Save?

One of the biggest advantages of the updated rebate rules is the increased relief available to eligible purchasers.

For qualifying homes, potential HST relief may be substantial. The amount available depends on the home’s purchase price and the rebate program the purchaser qualifies for.

*Actual rebate amounts depend on the purchase price, tax payable and eligibility requirements.

Depending on the program, the available rebate combines relief for both the federal and Ontario portions of the HST. The amount available will vary based on the home’s purchase price and the applicable rebate program.

Which Types of Homes Are Eligible?

The rebate isn’t limited to one type of home.

Depending on the program requirements, eligible properties may include:

• New detached homes
• New semi-detached homes
• New townhomes
• New condominium units
• Pre-construction homes
• Homes built on land owned by the purchaser
• Certain substantially renovated homes

Whether you’re searching for your first home or looking for more space for a growing family, these programs may apply across many different housing options.

For example, buyers exploring Glenview’s thoughtfully designed communities in Orléans, Stittsville, Riverside South, and Ottawa East may find that an eligible new home purchase qualifies under the updated rebate rules.

How Do You Claim the HST Rebate?

For many purchasers buying directly from a builder, the rebate process is relatively straightforward.

In many cases, eligible purchasers assign the rebate to the builder. The builder is often the one applying for the rebate on the purchaser’s behalf through the existing CRA rebate process.

This means the purchaser receives the benefit as part of the purchase transaction. Reducing the amount due at closing and potentially lowers the amount that needs to be financed through a mortgage.

For a rebate application, purchasers should keep documents such as:

• The Agreement of Purchase and Sale
• Closing documents
• Proof that the home will be used as a primary residence
• Any rebate forms required for the transaction

Your lawyer plays an important role in reviewing the purchase agreement, confirming how the rebate is handled, and helping to ensure that the appropriate documentation is completed before closing.

Common Questions About the New HST Rules

• Does it apply if I’m not a first-time home buyer?

• • • Yes. While some rebate programs are specifically designed for first-time buyers, the Enhanced HST Rebate for New Primary Residences may also be available to eligible repeat buyers purchasing a qualifying new home as their primary residence.

• What if my partner has owned a home before?

• • • Eligibility for first-time buyer programs depends on the circumstances of both purchasers. If one purchaser has previously owned a home, it may affect eligibility for certain rebates. Your lawyer or tax professional can review your specific situation.

• Does the rebate apply to investment properties?

• • • No. The rebate is intended for qualifying homes that will be used as a primary residence.

• What happens if my closing date changes?

• • • Changes to construction timelines, agreements or occupancy dates could affect eligibility under certain programs. Speak with your builder and lawyer if your closing date changes.

• What if I’m building a custom home?

• • • Different rules may apply to owner-built homes. If you’re building on land you own, your lawyer or tax advisor can help determine which rebate program may apply.

• Can I combine the rebate with other home-buying incentives?

• • Potentially, yes. Many purchasers may also qualify for programs such as the First Home Savings Account or the Home Buyers’ Plan, depending on their circumstances.

Other Incentives Available to Ontario Home Buyers

The HST rebate is only one piece of the home-buying puzzle.

Depending on your circumstances, you may also be eligible for other programs designed to make homeownership more affordable, including:

• First Home Savings Account (FHSA)
• Home Buyers’ Plan (HBP)
• Land Transfer Tax Rebates for eligible first-time home buyers

Many purchasers can benefit from more than one program, making it worthwhile to understand all the options available before purchasing a home.

As you begin planning your purchase, Glenview’s resources on financing your new home, along with our Guide for First-time Home Buyers in Ottawa’s New Home Market, can help you prepare for each stage of the journey.

Buying a New Home in Ottawa?

Finding the right home is about more than floor plans and finishes; it’s about discovering a community where your family can feel at home for years to come.

Glenview Homes proudly builds thoughtfully designed new homes across some of Ottawa’s most desirable communities, with opportunities currently available in Orléans, Stittsville, Riverside South and Wateridge Village (coming soon). If you’re hoping to move sooner, our selection of move-in ready homes offers the convenience of an earlier closing without compromising on quality or craftsmanship.

As your new home comes to life, you’ll also have the opportunity to personalize your space through the Glenview Design Studio, where finishes, colours and details come together to reflect your personal style. And if you’re just beginning your search, our overview of the new-home buying process provides helpful insight into what to expect from your first visit through to move-in day.

Wherever you are on your home-buying journey, we’re here to help you feel confident every step of the way.

• Explore Glenview Homes’ Communities
• Take a virtual home tour
• Talk to a Sales Representative
• Join our community updates

Frequently Asked Questions

What is the new HST rebate for Ontario home buyers?

The new rebate rules expand HST relief for eligible purchasers of qualifying new homes through updated federal and Ontario rebate programs.

Who qualifies for the new HST rebate?

Eligibility depends on the program, but generally applies to eligible purchasers who buy a qualifying new home to be used as a primary residence.

Does the rebate apply to pre-construction homes?

Yes, qualifying pre-construction homes may be eligible when all program requirements are met.

How much can first-time home buyers save?

Eligible first-time home buyers may qualify for significant HST relief, depending on the home’s purchase price and the applicable rebate program.

Do I need to apply for the rebate?

In many builder transactions, the rebate is assigned to the builder and reflected in the purchase transaction. In other situations, purchasers may apply directly.

Can I combine the HST rebate with the FHSA?

Potentially. Many purchasers may qualify for both programs, provided they meet each program’s eligibility requirements.

Does the rebate apply to resale homes?

Generally, no. The rebate is intended for qualifying new or substantially renovated homes.

What happens if I no longer qualify before closing?

Changes to your circumstances or transaction could affect eligibility. Speak with your lawyer or builder as soon as possible if your situation changes.