Ontario HST Rebate Explained | Eligibility, Savings & Key Dates

Buying a new home is a big step. The Ontario HST Rebate helps make homeownership more attainable by offering eligible buyers up to $130,000 in tax savings on qualifying new homes.

Introduced to help improve housing affordability, this temporary program gives buyers a limited window to take advantage of significant savings.

Here's what you need to know.

What is the Ontario HST Rebate?

The Ontario HST Rebate is a temporary government program that provides a rebate on the 13% Harmonized Sales Tax (HST) paid on qualifying new homes. The rebate includes both the federal and provincial portions of the HST.

If you qualify, the rebate you receive depends on your home's purchase price:

Up to $1 million: Full rebate of the 13% HST, up to $130,000
$1 million to $1.5 million: Flat rebate of $130,000
$1.5 million to $1.85 million: Rebate gradually decreases from $130,000 to $24,000 as the purchase price increases
Above $1.85 million: The enhanced rebate no longer applies, but buyers may still qualify for the standard Ontario New Housing Rebate of up to $24,000

Who is eligible for the Ontario HST Rebate?

Generally, to qualify, you must:

Be purchasing a qualifying new home
Use the home as your primary residence
Sign your Agreement of Purchase and Sale between April 1, 2026 and March 31, 2027

Final eligibility is determined by the Canada Revenue Agency (CRA).

It's important to remember that eligibility is based on when your Agreement of Purchase and Sale is signed, not your closing date.

Important dates to know

To qualify for the enhanced Ontario HST Rebate:

Your Agreement of Purchase and Sale must be signed between April 1, 2026 and March 31, 2027
Construction must begin by December 31, 2028
Your home must be completed by December 31, 2031

The program is only available for a limited time, so if you're planning to purchase a new construction home, it's worth understanding how the rebate works before you buy. Now is a good time to learn how the rebate could help reduce the cost of your new home.

How does the Ontario HST Rebate work?

Many buyers wonder whether they need to apply for the rebate themselves.

In most cases, they don't.

When you purchase a new home from a builder, you'll typically assign the rebate to the builder as part of your Agreement of Purchase and Sale. You'll sign the required rebate forms, and the builder will submit the rebate application on your behalf.

Because the rebate is assigned to the builder, eligible buyers receive the benefit as part of their purchase rather than waiting to apply for it themselves.

The Canada Revenue Agency reviews the application after closing, and Ontario's Ministry of Finance issues the federal portion of the rebate to the builder. Processing typically takes about 30 days and does not affect your closing date.

Why your Agreement of Purchase and Sale matters

Your Agreement of Purchase and Sale includes details about how the rebate is assigned and administered. Your lawyer will review these details with you during the purchase process and answer any questions before closing.

Looking for a new home in Ottawa?

Cardel Homes offers thoughtfully designed new homes in some of Ottawa's most popular communities. If you have questions about the Ontario HST Rebate or how it applies to your purchase, our team is here to help.