Ontario’s HST on most new condo purchases is 13%: a 5% federal part and an 8% provincial part. Eligible buyers may receive one or more rebates, but the programs have different uses, price limits and dates. A resale home is generally exempt from HST. The agreement of purchase and sale (APS), occupancy plan, price before HST, construction dates and who is applying all matter.
Quick Summary
- Standard new-housing rebates may provide up to $6,300 of federal relief and up to $24,000 of Ontario relief for eligible transactions.
- The federal First-Time Home Buyers’ GST/HST Rebate is a separate program: up to $50,000 on qualifying homes up to $1 million, reduced between $1 million and $1.5 million, with no rebate at $1.5 million or more.
- Ontario’s first-time buyer rebate is separate from the temporary Ontario Enhanced New Housing Rebate (ENHR).
- Temporary ENHR is not limited to first-time buyers. With the Ontario New Home Affordability Payment (ONHAP), total relief may reach $130,000 in some eligible cases, subject to offsets and conditions.
- Rental claims follow separate CRA rules. Do not use an owner-occupier rebate or deadline for a rental purchase.
1. Standard GST/HST new-housing rebates
For eligible new or substantially renovated housing, the standard federal new-housing rebate can provide up to $6,300 of the 5% federal component for homes valued up to $350,000, phasing out to zero at $450,000. The standard Ontario new-housing rebate can provide up to $24,000 of the 8% provincial component, generally based on the first $400,000 of value. These rebates have occupancy and other requirements. The Ontario amount may remain available above that value limit when other enhanced programs do not apply.
2. Federal First-Time Home Buyers’ GST/HST Rebate
This federal rebate covers the 5% federal part of HST for eligible first-time home buyers purchasing or building a qualifying new home for use as a primary residence. It can provide up to $50,000 on a home valued at $1 million or less. It is reduced for values between $1 million and $1.5 million and is unavailable at $1.5 million or more.
- For a builder purchase, the APS must be dated March 20, 2025 through December 31, 2030.
- Construction must begin before 2031; the home must be substantially completed and ownership transferred before 2036.
- The applicant generally must be at least 18, a Canadian citizen or permanent resident, and meet the first-time ownership-history test for the calendar year of transfer and four preceding calendar years. Spouse or common-law partner ownership history and prior claims can affect eligibility.
- The applicant must meet the primary-residence and first-occupancy rules. A qualifying individual may apply when other co-buyers, such as parents, are not first-time buyers; spouse and all other statutory tests still matter. Only one buyer applies for a group purchase.
Ontario also has a separate first-time home buyer rebate for the provincial 8% component. It follows federal first-time eligibility and has its own calculation: full provincial relief may apply up to $1 million, then it reduces; the Ontario first-time amount reaches the $24,000 standard Ontario maximum in the $1.35 million to below $1.5 million range. Do not confuse this program with the temporary ENHR plateau.
3. Temporary Ontario Enhanced New Housing Rebate (ENHR)
The ENHR is a temporary top-up to Ontario’s standard new-housing rebate for qualifying primary residences. It is not restricted to first-time buyers. For an individual condo bought from a builder, the main conditions include:
- The APS is entered into from April 1, 2026 through March 31, 2027.
- Construction begins by December 31, 2028, and is substantially completed by December 31, 2031.
- HST becomes payable by December 31, 2032.
- The buyer acquires the home for use as their own or a relation’s primary residence and meets the other Ontario new-housing rebate conditions.
- For an assignment, both the original builder APS and the assignment agreement must fall within April 1, 2026 through March 31, 2027, and all other criteria must be met.
The ENHR and standard Ontario rebate together can provide up to $80,000 of provincial relief for eligible homes up to $1 million. The provincial amount remains at $80,000 from above $1 million through $1.5 million, then phases down for homes below $1.85 million. At $1.85 million or more, the enhanced rebate is unavailable, although the standard Ontario rebate may still apply. Owner-built homes have different timing requirements.
4. Ontario New Home Affordability Payment (ONHAP)
ONHAP is a separate payment administered by Ontario for individuals also entitled to the Ontario ENHR or enhanced rental rebate. It can add up to $50,000, but is reduced by the federal part of any GST/HST new-housing or first-time-buyer rebate to which the individual is entitled. That offset means the possible $130,000 combined figure is conditional; it cannot be added on top of a full federal rebate without adjustment.
After CRA assesses an application, it shares information with Ontario if the buyer gave consent on the rebate application. Ontario then issues any ONHAP payment separately; CRA says no separate Ontario form is required when consent is provided. If consent is not given, the buyer must provide required information to Ontario directly.
5. Rental properties: NRRP and Ontario ENRRP
A condo acquired for long-term rental use follows the GST/HST New Residential Rental Property (NRRP) rebate rules, not the owner-occupier rules above. An individual landlord may qualify when the property meets the residential-rental and other CRA requirements. Form GST524 is used for the applicable rental rebate claims. HST treatment and any rebate credit at closing depend on the APS and transaction structure; a buyer should not assume every condo requires an extra 13% cash payment or that a later refund is guaranteed.
Ontario’s temporary Enhanced New Residential Rental Property (ENRRP) rebate is a separate provincial program. For qualifying individual-condo rental cases, housing generally must be substantially completed by December 31, 2029, HST must become payable by December 31, 2032, and fair market value must be below $1.85 million. For a purchaser/landlord, qualifying construction may have begun between April 1, 2026 and March 31, 2027, or it may have begun earlier if the APS for the condo was entered into during that same window. For an assignment, both the original APS and assignment agreement must be inside the window. Other cases have separate branches. The whole-building purpose-built rental program has different rules.
For illustration only, if the before-tax purchase price is $700,000, 13% HST equals $91,000 before any rebate. The amount of cash due at closing depends on the APS, tax treatment and any rebate assigned or credited. Ask a tax professional and real-estate lawyer to review the actual documents.
How to apply and when payments arrive
The applicable application depends on the program and transaction type. Builder purchases commonly use Form GST190, with the builder able to credit an eligible rebate if the buyer agrees and the requirements are satisfied. Direct claims have their own filing and documentation rules. Rental rebate claims use Form GST524. Most claims have a two-year filing deadline calculated from a program-specific event, so check the CRA rule for your property type rather than assuming every deadline runs from the same closing date.
As of October 2026, CRA says it will begin processing Ontario ENHR applications once fall 2026 system changes are implemented. CRA anticipates 120 days to process claims, with delays expected for the initial backlog and possible audit delays of up to six additional months. ONHAP is paid separately by Ontario after CRA assessment.
Frequently Asked Questions
Can I receive both federal and Ontario rebates?
Potentially, if you qualify for each program. The programs cover different HST components and have separate conditions. The ONHAP amount is reduced by federal rebate entitlement, so do not add every stated maximum together.
Does every co-buyer need to be a first-time buyer?
For the federal first-time rebate, one eligible individual may apply for a jointly purchased home even if other co-buyers are not first-time buyers. The applicant must meet every other test; a spouse’s ownership history and earlier rebate claims can matter. Only one person applies for a group purchase.
Can an assignment qualify for Ontario’s temporary rebate?
For ENHR and ENRRP assignment sales, both the original builder agreement and the assignment agreement must be entered into between April 1, 2026 and March 31, 2027, as well as meeting all other criteria. Federal rules are separate.
Does the rental rebate use the December 2031 deadline?
No. The individual-condo Ontario ENRRP branch has its own December 31, 2029 substantial-completion deadline and a December 31, 2032 HST-payable deadline. Eligibility also depends on when construction began and, in some cases, the APS date.
What should I check before claiming?
Have a qualified tax professional or real-estate lawyer review your APS, assignment documents, intended use, before-tax price, construction and payment dates, builder credits, rebate forms and application deadline.
Official references: CRA Guide RC4028: new-housing rebates; CRA Memorandum 19-3-10: first-time buyer rebate and joint applicants; Canada Gazette: Ontario first-time buyer regulations; CRA Notice 346: Ontario ENHR; Ontario: ONHAP; CRA: processing and payment information; CRA Guide RC4231: rental property rebates; CRA: Ontario ENRRP eligibility.
