Blog, Real Estate

Ontario’s Temporary Enhanced New Housing Rebate: What Buyers Need to Know in 2026–2027

June 25, 2026

Buying a new home in Ontario? There’s a major tax break now available — but only for a limited time.

The Province of Ontario has introduced the Temporary Enhanced New Housing Rebate (ENHR), significantly increasing the amount of HST relief available to purchasers of newly built or substantially renovated homes.

For many buyers, this could mean up to $80,000 back — and in some cases, even more when combined with Ontario’s temporary 5% top-up.

Here’s what you need to know.

What is the Ontario Enhanced New Housing Rebate?

Traditionally, Ontario’s new housing rebate capped out at $24,000, which often left buyers absorbing a significant amount of HST on higher-value homes.

The new temporary ENHR dramatically increases that relief for qualifying agreements entered into between:

April 1, 2026 and March 31, 2027

This applies where an individual enters into an Agreement of Purchase and Sale directly with a builder.

How Much Can You Get Back?

The rebate depends on the purchase price of the new home:

Homes up to $1,000,000

Buyers can recover 100% of the 8% provincial portion of HST, up to a maximum of $80,000.

Homes between $1,000,000 and $1,500,000

Buyers receive a flat $80,000 rebate.

Homes between $1,500,000 and $1,850,000

A partial rebate is available, gradually reducing as the purchase price increases.

Homes $1,850,000 and above

The temporary enhanced rebate no longer applies, and buyers fall back to the standard Ontario rebate of $24,000.

Ontario’s Additional 5% Top-Up

Ontario has gone one step further.

In addition to the ENHR, the Province is temporarily providing relief equivalent to up to 5% of the federal portion of the HST.

This means eligible buyers may effectively receive relief on the entire 13% HST, depending on the transaction.

But there’s an important condition:

To qualify for this 5% top-up, the buyer must first qualify for the Ontario ENHR.

How Does This Work at Closing?

Once the updated rebate forms are released (expected mid-July 2026), buyers can assign their rebates directly to the builder.

This is important because it means:

✅ The rebate can be credited immediately on closing
✅ Buyers may not need to pay the full HST upfront and wait for reimbursement
✅ Builders can claim back the provincial portion through their HST filings

The additional 5% Ontario top-up will be paid separately by the Province after processing.

What About First-Time Home Buyers?

This rebate interacts with the federal and provincial First-Time Home Buyer (FTHB) programs.

If you qualify for the federal FTHB rebate:

Claim that first.

You may also be able to claim the Ontario ENHR and Ontario FTHB rebate together.

However:

The combined rebates for the 8% provincial portion cannot exceed the lesser of:

$80,000, or
the actual amount of provincial HST paid.

In short: you cannot receive more rebate than tax paid.

Practical Example

Let’s say you purchase a new build for $950,000.

HST (13%) = $123,500

Provincial portion (8%) = $76,000

Under the Ontario ENHR:

✔ You may recover the full $76,000

If you also qualify for the Ontario 5% top-up:

✔ Potential additional relief of up to $47,500

That’s over $120,000 in combined tax savings.

For many buyers, this is the biggest HST relief program Ontario has ever offered.

Important Considerations

Before assuming you qualify, remember:

The purchase agreement must be signed during the eligible window.
The home must meet the same eligibility criteria as the existing Ontario new housing rebate.
Assignment documentation must be completed properly.
Builders may not immediately have updated forms until mid-July.

This is especially important for buyers closing in early summer 2026.

Final Thoughts

For buyers considering a new construction home, timing matters.

This temporary rebate program could mean the difference between affording a home now or waiting.

At Rabideau Law, we are already advising clients on how these temporary enhanced rebates affect builder agreements, closing statements, assignments, and tax planning.

If you’re purchasing a pre-construction or newly built home, make sure your lawyer reviews the rebate structure before signing.

A missed clause or improperly completed assignment could cost you tens of thousands.

Thinking of buying new? Contact Rabideau Law before you sign.

About Geoff Rabideau

Geoff Rabideau, Principal Lawyer and Owner of Rabideau Law and Custom Closing is known as a mover and shaker in the real estate industry. Having been a practising lawyer for over 18 years, his innovative ideas and technological thinking has positioned him in the top 20, in terms of volume, of all real estate lawyers in Canada. He believes the client experience is of the utmost importance and strives to find convenient and effective ways to ensure quality legal services are provided, while simultaneously surpassing client expectations. With an understanding that client satisfaction needs to be achieved at every level, Geoff seizes every opportunity to educate real estate professionals to better serve not only their clients, but the real estate industry as a whole. Geoff often presents at CMBA as a guest speaker, his presentations are educational and engaging, and is the author of the chapter on real estate law in CMBA’s Mortgage Agent Course.