Ontario Pre-Construction · Buyer Guide
Buying a new or pre-construction home in Ontario means paying 13% HST — but most buyers get a large part of it back. In 2026, eligible buyers can combine federal and provincial rebates worth tens of thousands of dollars. Here's how each one works, with the current figures and a free calculator.
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Estimate your combined federal and Ontario rebate. This is an estimate, not tax advice.
Estimated total rebate
$110,500
Estimate only — not tax advice. Actual rebates depend on the agreement date, your eligibility, primary-residence use, and the builder's pricing structure (many builders price "net of rebate" and claim it for you). Confirm with the CRA and a tax professional.
The Four Rebates
The first two cover the federal 5% GST; the second two cover Ontario's 8% provincial portion.
The standard federal rebate returns 36% of the 5% GST (the federal part of the HST) on a new home, to a maximum of $6,300. You get the full amount when the home's fair market value is $350,000 or less; it phases out between $350,000 and $450,000, and is $0 at $450,000 or more.
A federal rebate for first-time buyers that removes the GST (the 5% federal part) on a new home valued up to $1,000,000 — up to $50,000 back. It reduces gradually for homes between $1,000,000 and $1,500,000 and is $0 at $1,500,000 or more. It applies where the agreement of purchase and sale with the builder is signed on or after May 27, 2025.
The standard Ontario rebate returns 75% of the provincial part (8%) of the HST on a new home, to a maximum of $24,000. The maximum is reached around a $400,000 price and, unlike the federal rebate, the $24,000 is not phased out on higher-priced homes.
A temporary, much larger Ontario rebate: 100% of the provincial part of the HST on a new home valued up to $1,000,000 — up to $80,000. A flat $80,000 applies between $1,000,000 and $1,500,000, a partial rebate between $1,500,000 and $1,850,000, and $24,000 at $1,850,000 or more. It's generally available where you sign with the builder between April 1, 2026 and March 31, 2027 for use as your primary residence (or a residential rental), with construction beginning by December 31, 2028.
Important: the figures above are summarized from the CRA and the Government of Ontario as of June 2026 and can change. Eligibility depends on price, agreement dates, and how you use the home. This guide is general information, not tax or legal advice — confirm your situation with the CRA and a qualified tax professional before relying on any number.
For Pre-Construction Buyers
On most pre-construction homes bought as a primary residence, the builder prices the home "net of" the new-housing rebate and claims it for you — so it's already reflected in your price and you don't pay it out of pocket. Investment and rental purchases are handled differently. When you register for a project through Housen.ca, we send the price list and deposit structure so you can see exactly how the rebate is treated before you commit.
FAQs
When you buy a new or pre-construction home in Ontario you pay 13% HST (5% federal GST + 8% provincial). The new-housing rebates return part of that tax. The standard federal GST rebate is up to $6,300 and the standard Ontario rebate is up to $24,000. In 2026 two larger programs also apply: the First-Time Home Buyers' GST rebate (up to $50,000) and Ontario's Enhanced rebate (up to $80,000) for agreements signed between April 1, 2026 and March 31, 2027.
Up to $50,000. It removes the 5% federal GST on a new home valued up to $1,000,000 for eligible first-time buyers, phasing out between $1,000,000 and $1,500,000 (and $0 at $1.5M or more). It applies to agreements with the builder signed on or after May 27, 2025.
A temporary 2026 enhancement that returns 100% of the provincial 8% portion of the HST — up to $80,000 — on a new home valued up to $1,000,000, with a flat $80,000 to $1.5M and a partial rebate up to $1.85M. It generally applies where you sign with the builder between April 1, 2026 and March 31, 2027 and the home is your primary residence (or a residential rental).
Eligibility for the Ontario new home HST rebate depends on three things: the price of the home, when you signed with the builder, and how you use the home. The standard federal and Ontario new-housing rebates apply when you buy a new or substantially renovated home to use as your primary place of residence (or that of a close relation). Investment and rental purchases are handled through a separate rebate stream with its own rules. The larger 2026 programs add their own tests: the First-Time Home Buyers' GST rebate requires that you qualify as a first-time buyer, and Ontario's Enhanced rebate generally requires an agreement signed in the April 1, 2026 to March 31, 2027 window.
On most new freehold and condo purchases for a primary residence, builders price the home 'net of' the new-housing rebate and claim it directly, so you don't pay it out of pocket. Investment/rental purchases often work differently (you pay, then apply). Always confirm how the rebate is handled in your agreement of purchase and sale.
Yes — the federal (GST) and provincial (Ontario) rebates apply to different parts of the HST, so an eligible buyer can receive both. A first-time buyer signing in the 2026 enhanced window could combine the First-Time Buyers' GST rebate with Ontario's Enhanced rebate. Eligibility and amounts depend on price, dates, and use, so confirm with the CRA and a tax professional.
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