What the $130,000 headline actually means
Reviewed November 6, 2026. CRA’s August 2026 version of Notice 346 describes the Ontario enhanced new housing rebate (ENHR) and the Ontario New Home Affordability Payment (ONHAP). The headline is a potential combined ceiling, not a cheque promised to every new-home buyer and not proof that an advertised price will fall by that amount.
The ENHR and ordinary Ontario new housing rebate together can provide up to $80,000 of relief for the 8% provincial part of HST. ONHAP, administered by the Province of Ontario, provides up to $50,000 relating to the 5% federal part, reduced by federal housing rebates to which the buyer is entitled. An eligible federal first-time-buyer rebate must be claimed first. You cannot collect the same tax relief twice.
This revision removes unverified legislative milestone claims, separates rental and primary-residence eligibility, and corrects the prior description of the $24,000 ordinary rebate. The CRA administration guidance—not an unsupported “both halves are law” timeline—is the source for the process below.
How the rebate works: provincial tiers and federal-part relief
| Home value / consideration | Combined Ontario relief for the 8% part |
|---|---|
| Up to $1 million | 100% of the 8% provincial part paid, up to $80,000 |
| Above $1 million, up to $1.5 million | Flat $80,000, subject to eligibility |
| Above $1.5 million, below $1.85 million | Partial provincial relief; use the applicable CRA calculation |
| $1.85 million and above | No ENHR; ordinary Ontario new housing rebate of up to $24,000 may remain available |
The $24,000 is provincial, not federal. ONHAP requires ENHR eligibility and has its own interaction with federal rebates. Do not read this provincial table as a promise of $130,000 at every price. Leased-land and co-operative arrangements have different value tests; owner-built cases use fair market value at substantial completion. Ask your lawyer or tax adviser to apply the correct calculation.
Eligibility decision sheet: start with how the home will be used
Builder purchase for a primary residence
The individual’s or a qualifying relation’s primary residence; new or substantially renovated housing; agreement and construction conditions must be met. First-time-buyer status is not required for ENHR.
Owner-built primary residence
Construction or substantial renovation must begin within the eligible window. Completion, fair-market-value and documentation rules differ from a builder purchase.
Rental investment
Do not use the primary-residence ENHR checklist to claim a rental rebate. Rental-property programs are separate, with their own use, timing and eligibility rules. This article does not establish rental entitlement.
An ordinary residential resale is generally HST-exempt and does not generate this rebate. A substantial renovation has a specific CRA definition; a new kitchen or cosmetic renovation alone is not enough. Eligibility for a rebate is also separate from permission to purchase under foreign-buyer rules.
Key dates: builder purchases are not owner-built projects
- Ordinary builder purchase: agreement entered into April 1, 2026–March 31, 2027; construction starts by December 31, 2028; substantially complete by December 31, 2031; HST becomes payable by December 31, 2032.
- Owner-built home: construction or substantial renovation starts April 1, 2026–March 31, 2027; substantially complete before 2030; fair market value at that point is below $1.85 million.
- Assignments: Notice 346 requires both the original purchase agreement and assignment agreement to fall within the qualifying window, as well as the other conditions.
- Changed or re-signed contracts: changing an earlier agreement or cancelling and re-signing to obtain the rebate can engage anti-avoidance rules. Do not assume a new signature date fixes eligibility.
These transaction conditions do not replace the filing deadlines in the current application instructions. Leased-land and co-op cases have additional rules in Notice 346.
Worked example: a $750,000 pre-tax builder purchase
Illustration only: assume the buyer and transaction qualify for full relief at this price, and the quoted price has not already deducted rebates. A tax-inclusive or net-of-rebate advertisement needs a different reconciliation.
- Pre-tax consideration
- $750,000
- 8% provincial HST
- $60,000
- 5% federal HST
- $37,500
- Total HST
- $97,500
- Potential combined relief if fully eligible
- $97,500
Federal rebates and ONHAP divide the federal-part relief; they are not each added at their maximum. The result is not necessarily extra cash at closing: a builder may already have credited or assumed the rebate in the advertised price. Compare the contract’s gross tax, each rebate, who receives it, and the cash required if a claim is refused or delayed.
Other buyer programs: do not add withdrawals to “savings”
An FHSA contains your savings and investments; eligible contributions may create a deduction and qualifying withdrawals may be tax-free. The account balance is not a government grant. Under CRA guidance, FHSA contributions made in the first 60 days of a year cannot be deducted for the previous tax year.
The Home Buyers’ Plan permits eligible access to RRSP savings and generally requires repayments; amounts not repaid as required can be included in income. Land-transfer-tax refunds and home-buyer tax credits have separate tests and limits. A tax deduction, a tax credit, a rebate and access to your own capital are different benefits.
The previous combined “savings and incentives” total has been withdrawn. Budget each program separately with your adviser, and do not use all headline maximums as money available for a deposit.
How to claim—and who actually pays
- Review before signing. Confirm intended occupancy, purchaser eligibility, dates, assignments and the builder’s rebate clauses.
- Reconcile the statement of adjustments. A builder may pay or credit eligible relief, but do not assume every builder credits every amount or that no HST cash is needed.
- Use the current CRA forms. Notice 346 identifies GST190 + RC7190-ON for builder purchases, and GST191 + RC7191-ON for owner-built cases. Follow current filing instructions and keep supporting records.
- Handle ONHAP separately. The CRA form’s information-sharing consent lets CRA send relevant information to Ontario after assessment. Ontario issues ONHAP separately. Without this consent, the claimant or builder must provide the required information directly to Ontario. No separate rebate application does not mean automatic payment without required information.
This is an explanation of government forms only; submitting a HouseIndex enquiry does not apply for a rebate or provide consent to share tax records. Do not send identity, banking or tax documents through the website enquiry form.
A practical purchase checklist
- Get the pre-tax price, HST, assumed rebates and final price in writing.
- Ask who bears the shortfall if eligibility, timing or occupancy changes.
- Check completion and outside dates against your housing and financing needs.
- Compare the full new-build cost with a suitable resale—not just the rebate headline.
- Keep a funding buffer if payment arrives after closing.
Use our curated GTA pre-construction hub to research projects, not as proof of rebate entitlement or current availability. The affordability tool supports budget planning; it does not calculate a government entitlement.
Discuss your new-home search
Vick can help with property research and next steps. Have your lawyer or tax adviser confirm rebate eligibility and the contract’s tax treatment before you commit.
Frequently asked questions
How much is the Ontario HST rebate on new homes in 2026?
Eligible purchases can receive up to $80,000 of combined Ontario relief for the 8% provincial part of HST, plus up to $50,000 of federal-part relief through applicable federal rebates and the Ontario-administered ONHAP. The combined ceiling can reach $130,000, but entitlement depends on price, use, timing and program conditions. Amounts already credited cannot be claimed twice.
What happens at $1.85 million and above?
CRA Notice 346 says no Ontario enhanced new housing rebate is available at $1.85 million and above. The ordinary Ontario new housing rebate of up to $24,000 may remain available subject to its conditions. This is provincial relief, not a $24,000 federal rebate.
Do first-time and repeat buyers qualify?
First-time-buyer status is not required for the Ontario enhanced new housing rebate. The home must be acquired for the individual’s or their relation’s primary place of residence, and all other conditions must be met. Rental investments are assessed under separate rental-property rebate rules.
Which dates apply to builder purchases and owner-built homes?
For ordinary builder purchases, the agreement window is April 1, 2026 to March 31, 2027; construction must start by December 31, 2028, be substantially complete by December 31, 2031, and HST must become payable by December 31, 2032. Owner-built construction must start within the April 2026–March 2027 window and be substantially complete before 2030. Leased-land, co-op and assignment cases have additional conditions.
Who pays the Ontario New Home Affordability Payment?
The Province of Ontario administers ONHAP. It is reduced by federal housing rebates to which the buyer is entitled; an eligible first-time buyer must claim the federal first-time rebate first. The CRA application’s information-sharing consent can facilitate a separate Ontario payment. Without that consent, required information must be supplied directly to Ontario. A builder may pay or credit the payment, but this is not guaranteed.
Can FHSA and HBP amounts be added to the rebate as savings?
No. An FHSA holds the buyer’s own savings and investments; its deduction benefit depends on the taxpayer. HBP gives access to eligible RRSP savings and normally carries repayment obligations. Neither withdrawal is a government grant. Check each program separately rather than advertising one combined savings total.
Which forms apply?
CRA Notice 346 identifies GST190 with RC7190-ON for builder purchases, and GST191 with RC7191-ON for owner-built homes. Use the current CRA form and filing instructions for your circumstances, whether or not the builder credits an amount. Keep the agreement, amendments, invoices and closing statement.
Does an ordinary resale qualify?
An ordinary previously occupied residential resale is generally exempt from HST and does not generate this new-housing rebate. Substantially renovated housing has a specific CRA definition and should not be treated as an ordinary cosmetic renovation.
Official sources and review limits
CRA Notice 346 (August 2026 version), CRA ENHR and ONHAP overview, and CRA FHSA deduction guidance, reviewed November 6, 2026. This is general information, not a legal opinion, tax ruling or guarantee of approval. Follow the current official instructions for your transaction.
Share the eligibility decision sheet with its date, limitations and this article’s URL. Do not turn “up to” into a promised refund, or reuse the former combined-benefits graphic as a savings calculation.