Up to $80,000
Relief for the 8% Ontario portion, including the existing Ontario new housing rebate.
ONTARIO NEW HOME HST RELIEF
A new home.
A lighter tax bill.
Planning a custom home or buying a newly built home? Eligible Ontario projects may qualify for significant HST relief.
See how it appliesUP TO$130,000
in combined relief under Ontario’s temporary program
For eligible first-time and repeat buyers. Value, timing, occupancy and tax-paid conditions apply. This is total relief, including applicable existing rebates.THE OPPORTUNITY
Understand the
potential savings.
The temporary program combines the Ontario Enhanced New Housing Rebate with the Ontario New Home Affordability Payment. Ontario program details
Up to $50,000
Relief equivalent to the 5% federal portion, reduced by applicable federal housing rebates.
| Home value* | Potential combined relief |
|---|---|
| Up to $1 million | Up to the full eligible HST paid, capped at $130,000 |
| Over $1 million to $1.5 million | $130,000 maximum, subject to eligible HST paid |
| Over $1.5 million and below $1.85 million | Reduced relief as home value increases |
| $1.85 million or more | No temporary enhanced relief; the existing Ontario rebate of up to $24,000 may still apply |
*For a builder sale, the value test generally uses the house-and-land price before HST. For an owner-built home, it uses the completed home-and-land fair market value. Relief depends on eligible HST actually paid; it is not automatically 13% of an owner-built home’s appraised value. Special property types have different rules. CRA’s detailed rules
BUYING OR BUILDING
Two paths.
Different dates to watch.
The home must be an eligible primary residence for you or a qualifying relation, with the required first occupancy. The temporary program does not require first-time-buyer status.
Building on your land
Hiring Allstead to build on land you own generally follows the owner-built route.
- Construction begins April 1, 2026–March 31, 2027.
- Substantial completion is required by December 31, 2029.
- The completed home-and-land value must be below $1.85 million.
Signing a construction contract alone does not establish the construction start date.
Buying a home and land
A qualifying purchase from a builder follows the builder-sale route.
- Purchase agreement entered April 1, 2026–March 31, 2027.
- Construction starts by December 31, 2028 and is substantially complete by December 31, 2031.
- HST becomes payable by December 31, 2032; price before HST must be below $1.85 million.
Other conditions and restrictions apply, including rules for assignments and changes to earlier agreements. Check CRA eligibility and application guidance.
BEFORE YOU BUDGET
A few useful details.
What about the first-time home buyer rebate?
Separate federal and Ontario first-time-buyer rebates may apply outside the temporary program’s window. The federal portion offers up to $50,000, with full relief up to $1 million and a phase-out below $1.5 million. First-time-buyer, occupancy and date requirements apply. Overlapping rebates are coordinated, so the same tax is not refunded twice. Read the first-time-buyer rules.
When would I receive the money?
The CRA administers the Ontario enhanced rebate. Ontario issues the affordability top-up separately, with payments expected to start in early 2027. Application processing and any builder-credit arrangement affect timing; it is not an automatic cash discount when you sign. Ontario’s payment update.
Does a coach house or rental property qualify?
That requires a separate review of the property, ownership and intended use. The primary-residence rules above do not establish rental-property eligibility. Do not deduct a rebate from a coach-house budget without confirming which rules apply.
How should I include this in my Allstead budget?
We can help identify the project details to review with your accountant or lawyer: ownership, intended use, home-and-land value, tax paid and timing. Your written proposal should confirm HST and any rebate-credit arrangements. Final entitlement is determined under the government program rules.
Let’s talk about your new home.
Bring your lot, ideas and target start date. We’ll help put the building plan together.
Program information checked November 5, 2026. This overview is general information; confirm your eligibility and current rules before relying on a rebate in your budget.