Ottawa's new GST/HST rebates for new-build homes change the math for buyers — and for how we underwrite. Here is the clean before-and-after comparison, plus what it means at the $1.5M insured-mortgage cliff.
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August 13, 2026|NP Mortgages
New GST/HST rebates on new builds: what changed, and the $1.5M mortgage cliff
NP Mortgages · HST rebate guide
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Ontario first-time home buyers’ HST rebate
Who qualifies?
To qualify, at least one purchaser must meet the following requirements:
- 1
At least one purchaser must be a first-time home buyer.
- 2
The qualifying purchaser must be at least 18 years of age.
- 3
They must be a Canadian citizen or permanent resident.
- 4
The property must be their principal place of residence.
- 5
During the current calendar year or the previous four calendar years, they must not have lived in a home, anywhere in the world, owned by them or their spouse or common-law partner.
- 6
Neither the qualifying purchaser nor their spouse or common-law partner may have claimed a First-Time Home Buyers' rebate previously.
- 7
The qualifying purchaser must be the first person to occupy the new home.
Timeline
Important dates you need to know to qualify for the Ontario First-Time Home Buyers’ rebate.
March 20, 2025
Earliest qualifying Agreement of Purchase and Sale
March 31, 2031
Last qualifying Agreement of Purchase and Sale
December 31, 2035
Substantial completion deadline
Please note: To qualify for the rebate, your Agreement of Purchase and Sale must be within the dates above and the home must be substantially completed by December 31, 2035.
Maximum combined provincial rebate
Existing Ontario NHR + Ontario FTHB
For homes $1,000,000 or less, up to $80,000 in combined provincial rebates.
Rebate phases out between $1,000,000 and $1,500,000.
At $1,500,000 or more, the additional FTHB rebate is not available.
The Existing Ontario New Housing Rebate of $24,000 always remains available.
| Purchase price | Existing Ontario NHR (max) | Additional Ontario FTHB (phases out) | Total provincial rebate (max) |
|---|---|---|---|
| $500,000 | $24,000 | $16,000 | $40,000 |
| $750,000 | $24,000 | $36,000 | $60,000 |
| $1,000,000 | $24,000 | $56,000 | $80,000 |
| $1,100,000 | $24,000 | $44,800 | $68,800 |
| $1,250,000 | $24,000 | $28,000 | $52,000 |
| $1,400,000 | $24,000 | $11,200 | $35,200 |
| $1,499,900 | $24,000 | $11.20 | $24,011.20 |
| $1,500,000 or more | $24,000 | Not available | $24,000 |
Important: The Existing Ontario New Housing Rebate (up to $24,000) does not phase out based on purchase price. Only the Additional Ontario First-Time Home Buyers’ rebate is reduced as the purchase price increases.
Ontario enhanced new housing HST rebate
Who qualifies?
For a home and land purchased from the same builder, the purchaser must meet these requirements:
- 1
The purchaser must be an individual.
- 2
The home must be a new or substantially renovated single-unit home or residential condominium in Ontario.
- 3
The purchaser must otherwise qualify for the Existing Ontario New Housing Rebate.
- 4
The home must be for use as the primary place of residence of the purchaser or their relation — not as a rental property.
- 5
The purchaser or their relation must be the first individual to occupy the home after substantial completion.
- 6
The Agreement of Purchase and Sale and construction deadlines must fall within the qualifying periods.
- 7
The purchase price, excluding HST, must be less than $1,850,000.
Important: First-time home buyer status is not required for the enhanced rebate.
Enhanced rebate timeline
Important dates for a new or substantially renovated home purchased from a builder.
April 1, 2026
Earliest qualifying Agreement of Purchase and Sale
March 31, 2027
Last qualifying Agreement of Purchase and Sale
December 31, 2028
Construction or substantial renovation must begin by this date
December 31, 2031
Substantial completion deadline
December 31, 2032
HST must become payable by this date
Please note: The Agreement of Purchase and Sale must be entered into with the builder during the qualifying period. Assignment sales require both the original agreement and the assignment agreement to fall within that period.
Maximum combined HST relief
Ontario ENHR + ONHAP
For homes $1,000,000 or less, up to 100% of the 13% HST may be relieved.
From above $1,000,000 to $1,500,000, maximum combined relief is $130,000.
Between $1,500,000 and $1,850,000, both enhanced amounts phase down.
At $1,850,000 or more, only the Existing Ontario New Housing Rebate of up to $24,000 remains.
| Home price | Ontario ENHR (8%) | ONHAP (5%) | Total HST relief |
|---|---|---|---|
| $500,000 | $40,000 | $25,000 | $65,000 |
| $750,000 | $60,000 | $37,500 | $97,500 |
| $1,000,000 | $80,000 | $50,000 | $130,000 |
| $1,250,000 | $80,000 | $50,000 | $130,000 |
| $1,500,000 | $80,000 | $50,000 | $130,000 |
| $1,600,000 | $64,000 | $35,714.29 | $99,714.29 |
| $1,675,000 | $52,000 | $25,000 | $77,000 |
| $1,750,000 | $40,000 | $14,285.71 | $54,285.71 |
| $1,850,000 or more | Not available | Not available | Up to $24,000 |
Important: ONHAP is reduced by any federal GST/HST rebate the purchaser is entitled to claim. Figures above assume no federal rebate offset.
Ontario HST rebates: timeline comparison
Enhanced New Housing vs. First-Time Home Buyer
For a new or substantially renovated home purchased from a builder
Agreement of Purchase and Sale windows
First-time home buyer (FTHB)
March 20, 2025 — window opensDecember 31, 2030 — last qualifying agreement date
Enhanced new housing (ENHR)
April 1, 2026 — window opensMarch 31, 2027 — window closes
Overlap: April 1, 2026 to March 31, 2027
Construction and completion deadlines
First-time home buyer (FTHB)
- Construction begins: by December 31, 2030
- Substantial completion: by December 31, 2035
- Ownership transferred: by December 31, 2035
Enhanced new housing (ENHR)
- Construction begins: by December 31, 2028
- Substantial completion: by December 31, 2031
- HST becomes payable: by December 31, 2032
Which timeline applies?
Agreement before April 1, 2026: FTHB only, if eligible.
Agreement from April 1, 2026 to March 31, 2027: Both may apply.
Agreement after March 31, 2027 and before 2031: FTHB only, if eligible.
Important: The ENHR has a much shorter agreement window and earlier construction deadlines. FTHB eligibility requirements still apply to the buyer.
Ontario HST rebates: Enhanced vs. FTHB
Which route provides the greater benefit?
First-time home buyer (FTHB)
- •Buyer must qualify as a first-time home buyer
- •Agreement: March 20, 2025 to before 2031
- •Additional FTHB relief ends at $1,500,000
Enhanced new housing (ENHR)
- •First-time buyer status is not required
- •Agreement: April 1, 2026 to March 31, 2027
- •Enhanced relief continues below $1,850,000
Total HST relief by purchase price
Purchase price excludes HST; totals include applicable existing rebates
First-time home buyer (FTHB) route Enhanced new housing (ENHR) route
Which should you claim?
1
If eligible for both during the ENHR window: claim the federal FTHB rebate first, then claim the ENHR and any remaining ONHAP. They are not mutually exclusive.
2
Outside the ENHR window: claim the FTHB rebate if eligible.
3
Above $1,000,000 and below $1,850,000 during the overlap: the Enhanced route provides the greater available relief.
Caution: Caps apply — total provincial 8% rebates cannot exceed $80,000, and ONHAP is reduced by any federal rebate entitlement.
FTHB rebate status ≠ mortgage qualification
The tax definition and mortgage-insurance rules are not the same
FTHB HST rebate
Tax test
- •At least 18 years old
- •Canadian citizen or permanent resident
- •Buyer/spouse ownership-and-occupancy test
- •No previous FTHB rebate by buyer or spouse
- •New or substantially renovated principal residence
30-year insured mortgage
Financing test
- •Purchase price/lending value must be below $1.5 million
- •Mortgage qualification, credit, income and debt-service rules apply
- •For amortization over 25 years, loan-to-value must exceed 80%
- •At least one borrower qualifies as an insurer FTHB OR the home is newly constructed
- •An additional insurance premium may apply
Key takeaway
A repeat buyer who does not qualify for the FTHB tax rebate may still qualify for a 30-year insured mortgage when purchasing a newly constructed home.
Broker language
Tax eligibility:
“Does the purchaser qualify for the rebate?”
Financing eligibility:
“Does the borrower and property qualify for the mortgage?”
Rebate eligibility does not guarantee mortgage approval. Confirm the lender and insurer's current criteria.
Swipe or use the arrows · mortgagesbynp.com
Rebate comparison at a glance
| Item | Before / existing | New First-Time Home Buyer rebate | New Enhanced rebate |
|---|---|---|---|
| Existing Ontario rebate | Up to $24,000 | $24K base + new top-up | $24K base + enhanced amount |
| Must be a first-time buyer? | No | Yes | No |
| New construction / substantially renovated? | Yes | Yes | Yes |
| Principal residence | Yes | Yes | Yes |
| $500K purchase | $24,000 | $40,000 | $65,000 |
| $1M purchase | $24,000 | $80,000 | $130,000 |
| $1.5M purchase | $24,000 | $24,000 | $130,000 |
| Enhanced rebate ends at | N/A | Top-up gone at $1.5M | Enhanced amount gone at $1.85M |
| APS qualifying period | Existing rules | From Mar. 20, 2025 | Apr. 1, 2026 – Mar. 31, 2027 |
The important nuance: the existing $24,000 rebate does not go away. The new programs layer additional rebate amounts on top, depending on eligibility and purchase price.
The mortgage cliff
This is the part that matters most on the financing side.
| Scenario | Before / regular situation | New FTHB route | Enhanced route |
|---|---|---|---|
| Insured mortgage limit | $1.5M | $1.5M | $1.5M |
| Rebate affects underwriting price? | Yes | Yes | Yes |
| Max pre-HST base price to stay under the insured threshold | Not stated | $1,372,578 | $1,442,478 |
| Difference between the new routes | — | Baseline | +$69,900 in purchasing room |
The $1.5M insured limit itself does not move because of a rebate. What moves is the net underwriting price after HST and the applicable rebate — and that is where an extra ~$70,000 of buying room appears on the enhanced route.
Numbers worth memorizing
| Purchase price | Old / existing | New FTHB | Enhanced |
|---|---|---|---|
| $500K | $24K | $40K | $65K |
| $1M | $24K | $80K | $130K |
| $1.5M | $24K | $24K | $130K |
| $1.85M | $24K* | — | $24K |
*Reflects the existing $24,000 rebate as described in the source presentation.
The short version
- Old: $24K
- New FTHB: up to $80K
- Enhanced: up to $130K
If you are shopping a new build near the $1.5M line, run the numbers before you sign the agreement of purchase and sale — the rebate route you qualify for can decide whether the deal stays insurable. Talk to our team and we will map it out with you.
This article summarizes program details for study and discussion purposes and is not tax advice. Confirm eligibility with CRA guidance or your accountant before relying on any figure.