This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.
Quick Answer
- The Ontario enhanced new housing rebate expires when the signing window closes on March 31, 2027.
- Eligible buyers must sign an agreement of purchase and sale (APS) with a builder on or after April 1, 2026 and on or before that date.
- The deadline is tied to the signing date, not the closing date or occupancy date.
- Eligible buyers may recover up to $130,000 of the 13% HST paid on a new home used as a primary residence, subject to price-band phase-outs.
- The measure is now law in Ontario and federally, retroactive to April 1, 2026.
Why buyers are suddenly asking about this deadline
If you are about to sign a purchase agreement on a new build in Ontario, there is a real chance the tax rules on your file have quietly changed. Ontario expanded its new housing rebate in 2026, and eligible buyers may now recover up to $130,000 of the 13% HST paid on a qualifying new home. That is a meaningful shift from the older rebate, which capped out closer to $24,000.
The catch is that the expansion is temporary, so timing matters more than usual. Buyers keep asking the same practical question: when does it expire, and does the deadline apply to signing or closing? This is part of the broader Canadian tax shift for homeowners that has moved fast through the spring of 2026. Below is a plain-English walkthrough of the deadline, who typically qualifies, how much you can actually recover, and how to claim it without losing money to a paperwork mistake.
Pick your path in 30 seconds
Not every buyer is looking at the same rules. Before you dig into the fine print, work out which path fits your situation so you can jump straight to the section that matters.
Buying a new home to live in. The enhanced rebate is generally aimed at you. Your accountant can typically also confirm whether the federal First-Time Home Buyers GST rebate stacks with your file.
Buying a new rental unit as a sole proprietor. A separate rental version of the enhanced rebate may apply. See our guide on buying a new build as a rental for the rental-specific rules.
Holding property in a corporation. The enhanced rebate is generally designed for individuals, not corporate title holders. Speak with an accountant before signing to structure the purchase correctly.
What actually expires on March 31, 2027
That distinction is where most confusion lands. An APS is the contract you sign with the builder committing to buy a specific unit, and it is typically signed months or years before you actually close. If you signed on March 15, 2026 and closed on June 1, 2026, your signing date falls outside the window and the enhanced rebate generally does not apply, even though your closing is inside the timeframe people often quote. It is worth cross-checking other indirect-tax deadlines to watch to keep the rest of your file clean.
Construction and completion timelines run longer: construction typically must begin on or before December 31, 2028 and the home must be substantially completed on or before December 31, 2031, but those extended dates do not stretch the signing window.
The Ontario enhanced HST rebate — key dates timeline
The APS signing window is the deadline that expires. Construction and completion timelines extend well past it.
Source: Canada Revenue Agency, Notice 346 — Ontario Enhanced New Housing Rebate (canada.ca). ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.
Three programs, one comparison table
There are three distinct HST rebate programs currently in the mix, and buyers routinely mistake one for another. The differences matter because they change how much you can claim, whether you qualify, and when your signing deadline is.
The legacy Ontario New Housing Rebate is the long-standing program under the Excise Tax Act. It has no expiry date, applies to eligible individual buyers, and typically caps out at around $24,000 for higher-priced homes.
The federal First-Time Home Buyers GST Rebate was introduced through Bill C-4 in early 2026 and is retroactive to March 20, 2025. It eliminates the full 5% federal GST on qualifying homes for eligible first-time buyers, with relief of up to $50,000. It runs through the end of 2030 and is separate from the Ontario expansion.
The Ontario Enhanced New Housing Rebate plus the 5% Ontario top-up is the temporary expansion driving current headlines. Combined relief can reach $130,000, made up of up to $80,000 provincial and up to $50,000 through the Ontario-funded top-up. It applies to all eligible buyers, not only first-time buyers, and it is tied to the April 1, 2026 to March 31, 2027 signing window. Understanding how the GST/HST framework applies to everyday buyers makes it easier to see which of the three fits your file.
Three HST rebate programs at a glance
These three programs are frequently confused. Match your file to the row that fits.
| Program | Who qualifies | Max relief | Signing window | Status |
|---|---|---|---|---|
| Legacy Ontario New Housing Rebate | Eligible individual buyers of a new home used as a primary residence | Typically up to about $24,000 | No expiry | In force (long-standing) |
| Federal First-Time Home Buyers GST Rebate | Eligible first-time buyers of a qualifying new home | Up to $50,000 (5% federal portion) | Retroactive to Mar 20, 2025; runs through end of 2030 | In force (Bill C-4, R.A. Mar 2026) |
| Ontario Enhanced New Housing Rebate + 5% Ontario top-up | All eligible buyers of a qualifying new home used as a primary residence | Up to $130,000 (full 13% HST) | Apr 1, 2026 to Mar 31, 2027 (APS signing) | In force, retroactive to Apr 1, 2026 |
Sources: Canada Revenue Agency GST/HST new housing rebate; Notice 346 (Ontario ENHR); Bill C-4 (federal FTHB GST rebate); Ontario 2026 Budget. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.
Who typically qualifies for the enhanced rebate
A few practical notes on how the CRA typically applies these conditions. The buyer must be an individual, so corporate title holders are generally handled under different rebate provisions. The home must be newly constructed or substantially renovated, which for CRA purposes generally means at least 90% of the interior has been removed or replaced.
Primary residence status is judged on your intention at the time of purchase and your actual use afterward. Buying a new home to flip short-term generally does not qualify. A separate rental version of the enhanced rebate applies to qualifying residential rental properties, with its own timing rules that are outside the scope of this article. For residential real estate tax considerations across the broader picture, see our related guide.
How much relief you can actually recover
A worked example makes it concrete. A $700,000 new build in the GTA sits well below the $1 million threshold, so the buyer may recover roughly $91,000 of HST, subject to eligibility. A $1.2 million home stays inside the full-cap range and may still recover the $130,000 maximum. A $1.7 million home falls inside the phase-out band and would recover somewhere between $130,000 and $24,000 depending on where it lands on the linear scale.
All figures are estimates and should be confirmed against your specific purchase price and eligibility profile before you rely on them. For a wider set of planning ideas, look at other ways to maximize real estate tax savings in a related guide.
Estimated HST relief by new-home purchase price
Full relief holds through $1M. The $130,000 cap holds to $1.5M, then phases out linearly to about $24,000 by $1.85M.
Source: Government of Ontario, 2026 Budget — HST on new homes (budget.ontario.ca); CRA Notice 346. Figures are illustrative estimates based on the legislated formula; actual relief depends on eligibility. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.
Your step-by-step roadmap to claiming it
- 1Confirm your APS date.The signed date must fall on or after April 1, 2026 and on or before March 31, 2027. Amendments to an earlier agreement generally do not reset the signing date.
- 2Confirm primary-residence use.You or a qualifying relation must intend to use the home as a primary residence and be the first occupant.
- 3Gather your paperwork.You will typically need the APS, the Statement of Adjustments, closing documents, and builder correspondence.
- 4Decide the claim channel.Many builders credit the rebate at closing so no HST is paid out of pocket. Otherwise, you pay HST at closing and file directly with the CRA.
- 5Complete Form GST190 and Schedule RC7190-ON.RC7190-ON was updated in mid-2026 to include the enhanced calculation.
- 6File within two yearsof the transfer of ownership or possession.
- 7Plan cash flow if you are self-claiming.Enhanced-rebate processing at the CRA is expected to ramp up through fall 2026, and using CRA online services to track your file can help avoid surprises.
Common mistakes that cost buyers the rebate
A few paperwork errors show up again and again on this file, and each can quietly cost tens of thousands of dollars. Keep an eye on other GST/HST rules that trip businesses up alongside these.
- →Confusing the signing date with the closing date. The window is tied to when the APS is signed, so a closing inside the window with a signing before it typically does not qualify.
- →Assuming the rebate is only for first-time buyers. The expansion applies to all eligible buyers of a qualifying new home used as a primary residence.
- →Signing an APS before April 1, 2026 and expecting the enhanced amount. Early signers typically fall back to the legacy cap of roughly $24,000.
- →Miscalculating relief on homes over $1 million. The $130,000 cap holds only through $1.5 million and phases out to about $24,000 at $1.85 million.
- →Assuming the builder credits the rebate automatically. Builder credit is optional, and many buyers still need to file GST190 themselves after closing.
- →Missing the two-year CRA filing deadline. Applications generally must be filed within two years of the transfer of ownership or possession.
- →Trying to stack the first-time-buyer rebate and the enhanced rebate on the same dollars of HST. The programs can combine within statutory caps but cannot duplicate the same portion of HST.
Frequently asked questions
When exactly does the Ontario new housing rebate expire?
Is the deadline based on when I sign my agreement or when I close?
Do I qualify if I’m not a first-time home buyer?
How much HST can I actually get back on a new home in Ontario?
What happens if my new home is priced over $1 million?
I already closed on my new build, did I miss the rebate?
Does the builder claim the rebate for me, or do I have to file myself?
Does this rebate apply if I’m buying the new home as a rental?
Talk to ClearWealth before you sign
The March 31, 2027 signing deadline is the single most important date to hold in your head if you are looking at a new build in Ontario. The accounting mechanics, especially the choice between a builder credit and a self-claim, are typically where money is left on the table. If you are close to signing, book a consultation with ClearWealth to review your file before you commit.
Book a ConsultationThis article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.
Sources & References
- Canada Revenue Agency, Notice 346, Ontario Enhanced New Housing Rebate: canada.ca (Notice 346)
- Canada Revenue Agency, Ontario ENHR — purchasing a home from a builder: canada.ca (ENHR builder guide)
- Canada Revenue Agency, GST/HST new housing rebate framework: canada.ca (rebate framework)
- Government of Ontario, 2026 Budget — HST on new homes: budget.ontario.ca/2026/hst.html
- Ontario Regulation 196/26 under the Retail Sales Tax Act — Residential Property Rebates (Ontario e-Laws).
- Federal Regulations P.C. 2026-610 amending the New Harmonized Value-Added Tax System Regulations, No. 2 (Ontario).
