Updated Checked by the Tax-Services.ca editorial team How we check
Checked 10 November 2026 against the CRA pages. The CRA describes the Ontario enhanced new housing rebate (ENHR) as a temporary top-up to the Ontario new housing rebate. It applies to homes bought from a builder under an agreement signed between April 1, 2026 and March 31, 2027, and to owner-built homes where construction starts in the same period.
This is not a Budget 2026 measure. The federal budget only refers in general terms to a partnership with Ontario that cuts taxes on housing. The rules below come from the CRA.
Who qualifies for the Ontario enhanced rebate?
For a home bought from a builder, the agreement of purchase and sale must be entered into on or after April 1, 2026 and on or before March 31, 2027. The same window applies to a share in a co-op. For an owner-built home, construction or substantial renovation must begin in that period.
The home must be your primary place of residence or that of a relation. It cannot be used as a rental property, and you or your relation must be the first individual to occupy it after it is substantially complete. The CRA says that if an agreement signed before April 1, 2026 is changed so that it counts as entered into on or after that date, you are not entitled to the rebate. For assignment sales, both the original agreement with the builder and the assignment agreement must fall within the window.
How much is the rebate?
The rebate covers the Ontario part of the HST, which is 8%, and is combined with the existing Ontario new housing rebate. It depends on the value of the new home.
| Value of the new home | Provincial relief |
|---|---|
| Up to $1 million | Full rebate of the 8% provincial part, up to $80,000 |
| Over $1 million, up to $1.5 million | Flat $80,000 |
| Over $1.5 million and under $1.85 million | Partial rebate of the provincial part (the CRA gives no formula on the page) |
| $1.85 million and over | Only the Ontario new housing rebate of up to $24,000 |
Our own arithmetic for a quick check: on a $900,000 new home the 8% provincial part is $72,000, which is under the $80,000 limit, so the full amount is covered. Your builder's price, the exact value used and any other rebates change the real figure.
What about the 5% federal part of the HST?
Ontario also runs the Ontario new home affordability payment (ONHAP). The CRA says it provides up to $50,000, equal to up to 100% of the 5% federal part of the HST. It is reduced by any federal GST/HST new housing rebate or first-time home buyers' GST/HST rebate. If you qualify for the federal first-time buyer rebate, you claim that first to work out your ONHAP. You do not file a separate ONHAP application. You consent on the rebate form.
To see the federal rebate side, use the GST New Housing Rebate Calculator.
What construction and completion deadlines apply?
For a house and land bought from a builder, the CRA lists these conditions. The total consideration, excluding HST, must be less than $1,850,000.
| Type | Start | Completion or transfer | Value limit |
|---|---|---|---|
| House and land from a builder | Construction began on or before December 31, 2028 | Substantially complete on or before December 31, 2031 | Under $1,850,000 |
| Owner-built home | Began April 1, 2026 to March 31, 2027 | Complete on or before December 31, 2029 | Under $1,850,000 at completion |
| Lease-land from a builder or co-op share | Same dates as the builder case for the lease-land home | Possession or ownership transferred on or before December 31, 2032 | Under $2,090,500 |
Law firm summaries online give other dates for these deadlines. We use the CRA pages only.
How is the rebate claimed?
For a home bought from a builder, the buyer and the builder fill out Form GST190 and the Ontario schedule RC7190-ON. If the builder pays or credits the rebate, the builder submits the forms and takes the deduction on its GST/HST return. If it does not, you file the forms yourself by mail, generally within 2 years of the date ownership or possession was transferred to you. For an owner-built home the forms are GST191, GST191-WS and RC7191-ON, also filed by mail, within 2 years of your base date.
The CRA says electronic filing is not currently available and updates are expected in fall 2026. It will start processing applications once the system changes are in place. It expects processing to take about 120 days, and an audit can add up to 6 months. Keep your records for 6 years.
What should you check before signing?
Ask the builder in writing how the rebate will be applied and who files the forms. The CRA also warns that if the builder knew or ought to have known that a buyer was not entitled, the builder and the buyer can be jointly liable. A replacement agreement must have genuine reasons other than getting the rebate. For the wider cost of buying, see home buying costs and taxes and the first-time buyer benefits calculator.
How is this page kept current?
The CRA pages are dated July to September 2026, and the CRA says guide RC4028 will be updated with details. We re-read them when that happens and change figures only if the official text changes. Related new-home items from Budget 2026 are on Mortgage Insurance Changes in 2027.
This is an independent information site. It provides no services, does not represent the CRA, the Government of Ontario or any organization, and collects information from open sources. It does not guarantee that anything here is accurate or current, and it accepts no liability for how you use it. Check the CRA pages and talk to your builder or a tax professional before you rely on a figure.
Frequently asked questions
What is the Ontario enhanced new housing rebate?
The CRA calls it a temporary top-up to the Ontario new housing rebate for new homes bought from a builder or built by the owner in a set window.
What is the deadline to sign the agreement?
The agreement of purchase and sale must be entered into on or after April 1, 2026 and on or before March 31, 2027.
What is the most the Ontario part can cover?
Up to $80,000 of the 8% provincial part of the HST, on homes valued up to $1.85 million. Above $1.5 million the rebate is partial.
Can I claim it online?
Not yet. The CRA says electronic filing is not currently available, and updates are expected in fall 2026. Forms are filed by mail.
Does it apply to a rental property?
No. The home must be your primary residence or that of a relation and cannot be used as a rental property.