If you sign an agreement to buy a new condo in Ontario between April 1, 2026 and March 31, 2027 and you (or a relative) will live in it, you can get back the full 13% HST on a price up to $1 million, and a flat $130,000 between $1 million and $1.5 million. You do not need to be a first-time buyer. On a $650,000 condo, that is $84,500 of tax relief instead of the $24,000 most buyers received before.
Key takeaways
- The rebate covers new and substantially renovated homes, including condo units bought from a builder.
- Your agreement of purchase and sale must be signed from April 1, 2026 to March 31, 2027.
- Pre-construction contracts signed before April 2026 do not qualify, even if the price is renegotiated or the unit is assigned.
- The unit must be your primary residence or a relation’s; investor rental rules are covered separately.
- Most buyers will see the rebate as a credit from the builder on the closing statement.
What is the Ontario enhanced HST rebate?
HST on a new home in Ontario is 13%: a 5% federal part and an 8% provincial part. The enhanced relief, announced in the 2026 Ontario Budget and passed as Bill 114 on May 12, 2026, has two pieces that work together.
- Ontario Enhanced New Housing Rebate (ENHR): refunds 100% of the 8% provincial part, up to $80,000.
- Ontario New Home Affordability Payment (ONHAP): Ontario pays up to $50,000, equal to the 5% federal part, reduced by any federal rebate you also receive.
Together they reach $130,000. According to CRA Notice 346, the provincial piece is a full rebate up to a $1 million price, a flat $80,000 from $1 million to $1.5 million, a partial amount from $1.5 million to just under $1.85 million, and nothing above that (only the old $24,000 Ontario rebate remains).
Who qualifies for the HST rebate on a new condo?
For a condo bought from a builder, the CRA conditions are:
- The agreement of purchase and sale is entered into on or after April 1, 2026 and on or before March 31, 2027.
- Construction began by December 31, 2028 and is substantially complete by December 31, 2031.
- HST on the sale becomes payable by December 31, 2032.
- Total price is under $1,850,000.
- The unit is your primary place of residence or a relation’s. You can only have one primary residence.
Note what is missing: there is no first-time buyer test and no income test. A move-up buyer or downsizer selling a house to buy a new condo can qualify.
Completed units that a developer has never sold also fit, because the test is when you sign, not when the building was finished. That matters right now, with a record number of finished, unsold units in the GTHA.
How much is the rebate on a typical condo?
The table compares the old Ontario rebate (75% of the provincial part, capped at $24,000) with the enhanced relief, using pre-tax prices. Above $450,000 the old federal new housing rebate was nil, so most GTA condo buyers were only getting the $24,000.
| Pre-tax price | Total HST (13%) | Old Ontario rebate | Enhanced relief | Extra savings |
|---|---|---|---|---|
| $500,000 | $65,000 | $24,000 | $65,000 | $41,000 |
| $650,000 | $84,500 | $24,000 | $84,500 | $60,500 |
| $900,000 | $117,000 | $24,000 | $117,000 | $93,000 |
| $1,200,000 | $156,000 | $24,000 | $130,000 | $106,000 |
Urbanation estimated in April 2026 that the rebate would cut the effective price of unsold new condos by about $100,000 on average, which shows how large the change is relative to typical unit prices.
I signed for a pre-construction condo before April 2026. Do I qualify?
No, in most cases. The CRA says an agreement entered into before April 1, 2026 that is later varied, altered or assigned is deemed to have been entered into before April 1, 2026. Renegotiating the price or adding upgrades will not move you into the window.
Cancelling and re-signing with the same builder is also covered. A new agreement with the builder, a related party or another builder of the same project can be deemed a pre-April agreement unless it was made primarily for genuine reasons other than getting the rebate. If you are closing on an older contract and the numbers do not work, our article on the pre-construction condo appraisal gap covers the realistic options.
Does the HST rebate apply to condo assignments?
It can, but only if both agreements fall inside the window. The CRA says the original agreement and the assignment agreement must both be entered into between April 1, 2026 and March 31, 2027. Buying an assignment of a 2022 contract does not qualify, however good the assignment price looks.
First-time buyers: how the federal GST rebate fits in
Since March 2025, first-time buyers have had a federal first-time home buyers’ GST/HST rebate of up to $50,000 on new homes up to $1 million, phasing out at $1.5 million. Ontario’s version for first-time buyers removes the 8% provincial portion on the same price range.
The programs do not stack beyond the tax itself. The CRA says total provincial rebates cannot exceed the lesser of $80,000 and the provincial HST paid, and the ONHAP is reduced by any federal rebate. A first-time buyer who qualifies for the federal rebate must claim it first, and the Ontario payment fills any gap. For most buyers under $1 million the result is the same: no HST.
How the rebate shows up on your closing statement
Most builders price new condos with rebates assigned to them, and that will continue. Under TRREB’s summary of the process, you assign both rebates to the builder by completing Form GST190 with Schedule RC7190-ON, and the builder credits up to $130,000 at closing. You can instead pay the full HST and apply to the CRA yourself afterwards.
Two points to check with your lawyer:
- What the price includes. Is it “HST included, net of rebates assigned to the builder”? If so, which rebates does the price assume?
- What happens if you do not qualify. Builder agreements typically require you to pay the builder the rebate amount at closing if you turn out to be ineligible, for example because you rent the unit out. The CRA also says a builder that knew or should have known you were not entitled is jointly liable to repay.
Tip: When comparing a new condo to resale, compare like with like. Ask the builder for the price both with and without the enhanced rebate credited, then add closing adjustments (development charges, utility connections, Tarion enrolment) that a resale unit will not have. A resale unit in a two-year-old building has no HST at all, so the rebate narrows the gap but does not erase it.
What about investors and rental condos?
The primary residence rebate described here is not for investors. The CRA has said a separate notice on an Ontario enhanced new residential rental property rebate was expected by October 2026. Until it is published, investors should assume only the existing rental rebate rules apply and get specific advice before signing.
Frequently asked questions
Is the Ontario HST rebate only for first-time buyers?
No. The enhanced rebate for agreements signed from April 1, 2026 to March 31, 2027 is open to any individual buying a new home as their primary residence or a relation’s. First-time buyers have separate federal and Ontario rebates that run to 2030, and the programs coordinate so the total relief does not exceed the HST payable.
Does the rebate apply to a resale condo?
No. HST does not normally apply to a resale condo that has been lived in, so there is nothing to rebate. The program covers new or substantially renovated homes bought from a builder, including completed units that have never been sold or occupied. A substantial renovation means roughly 90% or more of the interior was removed or replaced.
Can my parents buy a new condo for me and claim the rebate?
The CRA allows the home to be the primary residence of the buyer or a relation, which includes children. The unit must actually be that person’s permanent home. Ownership, financing and title arrangements raise their own tax and legal questions, so speak with a lawyer before structuring a purchase this way.
What is the deadline for the enhanced HST rebate?
The agreement must be signed by March 31, 2027. Construction must start by December 31, 2028 and be substantially complete by December 31, 2031, and the HST must become payable by December 31, 2032. If a project is delayed past those dates, the rebate can be lost, so ask the builder about its schedule.
Shopping for a new condo before the window closes?
Read our pre-construction buying guide, browse condos for sale across Ontario, run the figures in our buyer calculators, or ask our team to compare a new unit with resale options in the same area.
This article is general information as of October 2026, not legal, tax, mortgage or financial advice. Rules and numbers change, so confirm the details for your situation with a licensed professional.