Decoded — the rebate everyone’s talking about
The new-home GST/HST rebate, in plain English
This is the reason pre-construction is suddenly worth a second look. As of 2026 there are two government rebates that only exist on new homes — and for a qualifying first-time buyer they can stack to as much as $130,000 on a new home up to $1 million. Above $1 million the rebate doesn’t vanish — it steps down through tiers (federal to $1.5M, Ontario all the way to $1.85M). Here’s exactly how it works, straight from the CRA, without the hype.
The two rebates that stack
New homes in Ontario carry 13% HST (5% federal + 8% provincial). These two programs give most of it back on a qualifying purchase:
1 · Federal — First-Time Home Buyers’ GST Rebate
Up to $50,000
Recovers up to 100% of the 5% federal GST. You must be a genuine first-time buyer using the home as your primary residence. By price:
- Up to $1M Full — up to $50,000 (100%)
- $1M–$1.5M Phases down linearly (e.g. $1.25M ≈ $25,000)
- $1.5M+ No federal first-time rebate
2 · Ontario — Enhanced New Housing Rebate
Up to $80,000
Recovers the 8% provincial part of the HST — and Ontario adds a separate top-up covering the 5% federal part where the first-time-buyer rebate doesn’t apply. Not limited to first-time buyers — it follows the standard Ontario new housing rebate rules. By price:
- Up to $1M Full — up to $80,000 (100%)
- $1M–$1.5M Flat $80,000
- $1.5M–$1.85M Partial (steps down)
- $1.85M+ $24,000 (standard Ontario rebate)
The deadline that creates the urgency
The Ontario Enhanced rebate applies where your agreement of purchase and sale is signed on or after April 1, 2026 and on or before March 31, 2027. That’s a real, legislated window — not a marketing countdown. The federal first-time buyer rebate runs for agreements signed on or after March 20, 2025 and before 2031. Good news on cash flow: builders can credit these rebates at closing, so in many cases you don’t have to front the money and wait.
Are you a “first-time buyer”? (it’s specific)
The big $50,000 federal piece has firm conditions. Per the CRA, you generally qualify if:
| Age & status | At least 18, and a Canadian citizen or permanent resident. |
| First-time test | Neither you nor your spouse/common-law partner has lived in a home you owned — in Canada or abroad — in this calendar year or the previous four. |
| The home | Newly built or substantially renovated, bought from a builder, and used as your primary residence. |
| Not used before | Neither you nor your spouse has claimed this first-time rebate before. |
| Timing | Apply within about two years of taking ownership or completing construction. |
Not a first-time buyer? You may still qualify for the standard GST/HST new housing rebate — and the Ontario Enhanced rebate isn’t limited to first-timers.
Buying it as an investment?
The first-time buyer rebate is for homes you live in — so it doesn’t apply to a rental. But investors aren’t left out: the New Residential Rental Property Rebate can recover a similar amount. The mechanics differ — you typically pay the HST up front and claim it back after closing with a signed one-year lease in hand. Different paperwork, different timing, same idea. We flag which path fits you before you sign.
Your real cost, before the rebate
The rebate comes off the tax; this shows the underlying numbers it applies to. Run your purchase and we’ll factor the rebate in together when we talk.
Run the real numbers
What will this actually cost?
A quick, honest estimate — not a mortgage approval. We’ll run your exact situation together before you commit to anything.
Total deposit
$135,000
staged over the deposit schedule
Mortgage at closing
$3,985/mo
on $786,420
Carrying cost
$4,885/mo
mortgage + taxes/fees
Estimates only, for illustration — not a mortgage approval, financial advice, or a guarantee. CMHC premiums use standard rate bands; minimum down-payment rules also apply on the portion of price above $500,000. Actual deposit schedules, rates, taxes, fees and rents vary. This tool does not factor the HST/GST new-home rebate, which depends on your eligibility. Confirm every figure with your mortgage broker and accountant.
The honest caveat
These figures are current as of July 2026 and taken directly from the CRA, but rebate rules and thresholds do change, and the exact amount you qualify for depends on the price, whether you’ll live there, your buyer status and the province. This is a plain-English overview, not tax advice — confirm your eligibility with an accountant and the CRA (canada.ca) before you count on a dollar of it. What we do is make sure it’s factored into your real numbers early, not discovered after you’ve signed.
Want your actual number?
Tell us the project and whether it’s a home or an investment, and we’ll walk through what the rebate realistically means for your purchase — alongside the deposit schedule and carrying costs.
Source: Canada Revenue Agency — First-time home buyers’ (FTHB) GST/HST rebate and GST/HST Notice 346, Ontario Enhanced New Housing Rebate (canada.ca), as published June 2026.