Ontario’s Enhanced New Housing Rebate: Savings of up to $130,000

Ontario’s Enhanced New Housing Rebate: Savings of up to $130,000

 In New Housing Rebate, Real Estate, Tax

A new opportunity has emerged for buyers looking to purchase a newly built home in Ontario. With the introduction of the Ontario Enhanced New Housing Rebate (ENHR), eligible buyers may benefit from a rebate of up to $130,000 on qualifying home purchases.

Unlike the legacy HST rebate program, this enhancement is open to all eligible buyers, not just first-time homeowners. However, this enhancement is meant to be temporary and is scheduled to phase out for agreements entered after March 31, 2027.

For anyone considering a new home in Ontario, keep reading to learn how you can seize this important  savings opportunity.

How Much of a Rebate Can I Receive?

The enhanced framework targets both the 5% federal GST and 8% provincial HST portions of a new build:
Purchase Price Range
Rebate Treatment
Maximum Combined Savings
Up to $1 Million
100% of the 13% HST is fully rebated
Up to $130,000 ($80,000 provincial + $50,000 federal)
$1 Million to $1.5 Million
Federal portion gradually phases out
$80,000+ (Provincial portion stays locked at $80,000)
$1.5 Million to $1.85 Million
Total provincial rebate reduces linearly
Scales down from $80,000 to $24,000
Over $1.85 Million
Original legacy limits apply
$24,000 maximum provincial rebate

How Do I Qualify?

To qualify for the fully enhanced amounts, transactions must follow this timeline:

  • Contract Execution: The Agreement of Purchase and Sale (APS) must be signed between April 1, 2026, and March 31, 2027.
  • Construction Start: The project must commence by December 31, 2028.
  • Construction Completion: The project must be completed by December 31, 2031.

How do I Apply for a Rebate?

How you apply for Ontario’s Enhanced New Housing Rebate depends on your intended use for the property.

  • Primary Residences: Builders can credit the full 13% rebate directly to the purchaser at closing.
  • Self-Filing for Primary Residences: Buyers applying manually after closing have two years to submit a rebate applicable.
  • Real Estate Investors: Individuals buying a property to lease out cannot receive the credit at closing. They must pay the full HST upfront and file for the Enhanced New Residential Rental Property Rebate (ENRRPR) post-closing.
Tip: Even for primary residences, some builders may only credit the purchaser for a portion of the 13% rebate requiring the purchaser to manually apply for the remainder after closing. It is important to read your purchase agreement carefully.

 

How We Can Help

Our firm can help you filing for the Enhanced New Housing Rebate, manage the entire application process from end to end. Ensure applicable forms are prepared seamlessly to comply with the filing criteria and avoid costly delays.

Contact us to learn more!


The content of this blog is intended to provide a general guide to the subject matter. Professional advice should be sought about your specific circumstances.

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