Ontario's $130,000 HST Rebate on New Homes: What Immigrants Need to Know Before Acting

What Was Actually Announced

On March 25, 2026, the Ontario government announced a temporary expansion of the HST New Housing Rebate. For qualifying new homes purchased under an Agreement of Purchase and Sale (APS) signed between April 1, 2026 and March 31, 2027, eligible buyers may recover up to the full 13% HST — a combined federal and provincial rebate capped at $130,000.

This was a significant change. Before 2026, the maximum rebate was $24,000, and it only applied to homes priced below $450,000 — which excluded nearly all new builds in the Greater Toronto Area.

Current Legal Status (Updated July 2026)

The period of legislative uncertainty is over. As of June 22, 2026, the full regulatory framework is in place.

Three pieces of legislation completed the framework:

• Federal Bill C-26 (Improving Housing Supply Act) — passed June 22, 2026
• Federal Order in Council P.C. 2026-610 — amending the New Harmonized Value-Added Tax System Regulations
• Ontario Regulation 196/26 under the Retail Sales Tax Act

Following these enactments, CRA released Notice 346 officially naming the program the Ontario Enhanced New Housing Rebate (Ontario ENHR).

How the Rebate Is Paid — Two Channels

1. 8% Provincial Rebate: The builder applies via Form GST190 / Schedule RC7190-ON. CRA reduces the builder's HST liability directly.
2. 5% Federal Top-Up: The Ontario Ministry of Finance pays the builder directly, generally within approximately 30 days, subject to Ontario Ministry of Finance processing time (electronic payment).

Builder vs. Direct Claim

• If your APS has a clause assigning the rebate to the builder: you receive the credit directly at closing on the Final Statement of Adjustments — no CRA paperwork needed.
• If your APS has no such clause: you pay full HST at closing and apply to CRA directly post-closing via your MyCRA account.

Investors

The Enhanced New Residential Rental Property Rebate (NRRPR) follows the same rules, but investors must always apply directly to CRA post-closing — builders cannot assign this rebate at closing.

Five Eligibility Traps for Immigrant Buyers

Even when the legislation is fully enacted, eligibility for cross-border families involves complications that routine property purchases do not. These are the issues that most commonly affect clients with ties to Hong Kong and Taiwan.

Trap 1 — Primary Residence Definition

The rebate's core test is whether the Canadian home will be your principal place of residence. If you still own and occupy a property in Hong Kong or Taiwan, the Canadian home may be treated as a secondary residence — placing your eligibility at significant risk. CRA applies a multi-factor intent test, and no single factor is automatically conclusive; CRA looks at mailing address, tax return filing address, driver's licence, and utility bills to assess this.

Trap 2 — First-Time Buyer Definition Under Federal Rules

The federal First-Time Home Buyer rebate requires that you have not owned and occupied a home as a primary residence anywhere in the world during the current calendar year or the preceding four calendar years. A family that still owns a home in Hong Kong — even if they have been living in Canada for two years — may not qualify for this stream of the rebate.

Trap 3 — Co-Purchaser and Title Structure

If any person on the title does not qualify as a "relation" under the Excise Tax Act — which excludes aunts, uncles, cousins, nieces, nephews, and fiancés — the entire rebate may be denied for all purchasers. A single non-qualifying co-signer holding even 1% of the property can void the entire claim.

Trap 4 — Rental Use After Purchase

Buyers who receive the New Housing Rebate based on primary residence, then rent out the property before occupying it, may be required to repay the full rebate with interest and penalties. CRA actively reviews transactions where a rebate was claimed and the buyer did not subsequently occupy the property.

Trap 5 — Tax Residency Status Intersection

Your Canadian tax residency start date affects how CRA views your primary residence claims and whether you have outstanding T1135 or T2062 obligations that could complicate any rebate application. For clients still establishing Canadian residency ties, the HST rebate application may draw attention to other unfiled obligations.

Construction Deadlines You Need to Know

For a home purchased as a primary residence, construction must begin on or before December 31, 2028, and be substantially completed by December 31, 2031. Pre-construction condominium buyers should confirm with their builder whether the project's timeline meets these requirements before signing.

How to Check Your APS

Before closing, check your Agreement of Purchase and Sale for a clause that assigns the Ontario ENHR to the builder. If the clause exists, the builder handles the paperwork and you receive the rebate credit at closing. If it does not exist — which is common for agreements signed before the rebate was finalized — you will need to apply directly to CRA post-closing. Either way, your eligibility must be confirmed before the application is filed.

What to Do Now

If you are currently in negotiations for a new-build purchase in Ontario, or considering one within the next twelve months, the most important step is to understand your tax position before you sign — not after. The APS signing date is the eligibility trigger. A purchase agreement signed outside the April 2026 to March 2027 window does not qualify for the enhanced rebate, regardless of when the home closes.

For cross-border families, that evaluation involves your Canadian tax residency status, your offshore asset position, and how your immigration timeline intersects with the rebate's primary residence test. These are not questions your real estate agent is qualified to answer.

Frequently asked questions

Is Ontario's $130,000 HST rebate on new homes currently law?

Yes. As of June 22, 2026, the full regulatory framework is in place — Federal Bill C-26, federal Order in Council P.C. 2026-610, and Ontario Regulation 196/26 together completed the legislation. CRA has named the program the Ontario Enhanced New Housing Rebate (Ontario ENHR) under Notice 346. CRA's application forms are expected by mid-July 2026; buyers who closed on or after April 1, 2026 can apply retroactively once forms are available.

Can immigrants and newcomers qualify for the Ontario HST rebate?

The primary eligibility test is whether the home will be your principal place of residence in Canada — not your citizenship or permanent residency status. However, your immigration status interacts with other eligibility factors. Professional advice is essential before signing.

Does owning a home in Hong Kong or Taiwan affect my HST rebate eligibility?

It may. If you still own and occupy a property in Hong Kong or Taiwan as your primary residence, the Canadian property may be treated as a secondary residence. For the federal First-Time Home Buyer rebate, you must not have owned and occupied a primary residence anywhere in the world during the current and preceding four calendar years.

What is the Agreement of Purchase and Sale deadline?

The APS must be signed between April 1, 2026 and March 31, 2027. The signing date — not the closing date or occupancy date — is the hard eligibility trigger.