Understanding the Ontario HST Relief for New Homes: What Buyers and Builders Need to Know

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Ontario's temporary HST relief for new homes is made up of two separate measures, worth up to $130,000 on an eligible home. Here is how each works, when payments are expected, and what buyers and builders need to do to stay compliant. This information was last updated July 28, 2026.

Two Components, Up to $130,000 in Relief

The Ontario Enhanced New Housing Rebate (ENHR) provides relief of up to $80,000 on the eight per cent provincial portion of the HST. The Canada Revenue Agency (CRA) assesses and administers this rebate.

The Ontario New Home Affordability Payment (ONHAP) is a separate provincial payment of up to $50,000, equivalent to the five per cent federal portion of the HST. Ontario administers and pays this amount after the CRA has assessed the underlying rebate application.

The ONHAP does not change the federal GST payable. It is a separate Ontario payment designed to provide equivalent relief. The CRA's main information page has more detail.

Processing and Payment Timing

The CRA will begin processing applications once its system changes are implemented this fall. Applications received before the system is ready will be processed in the order they are submitted.

According to the CRA's public guidance, applicants can expect processing to take approximately 120 days. Audits or requests for additional information may extend that by up to six months, depending on the complexity of the claim.

The CRA will issue the rebates it administers. Ontario will issue the ONHAP separately after the CRA has assessed the application and shared the necessary information. Current implementation planning anticipates ONHAP payments beginning in early 2027.

Keep your records. Applicants and builders should retain completed applications, calculation worksheets, agreements, supporting documents, and proof of occupancy for six years.

First-Time Home Buyers

An eligible first-time buyer must claim the federal First-Time Home Buyers' GST/HST Rebate first. The ONHAP may then cover an otherwise eligible amount of the five per cent federal HST that was not recovered through the federal rebate.

If a purchaser qualifies for both the Ontario ENHR and Ontario's first-time home buyers' rebate for the eight per cent provincial portion, they may claim either or both. However, the combined provincial rebates cannot exceed the lesser of $80,000 and the provincial HST actually payable.

An Important Compliance Point

The purchaser is responsible for ensuring they qualify. If a rebate is credited to an ineligible purchaser, it may have to be repaid, and a builder who knew or ought to have known may be jointly liable. We encourage members to confirm eligibility with their accountant, lawyer, or the CRA before crediting any rebate. This is general information, not legal or tax advice.

This applies only to owner-occupied homes. Rental projects are subject to separate rules and should not use the GST190 and RC7190-ON forms based on the details above.