Ontario’s Enhanced HST Rebate Deadline (March 31, 2027): New Build vs. Resale in Toronto, Which Costs Less?

Thursday Nov 12th, 2026

Buying a home in Ontario involves more than comparing listing prices. HST, land transfer tax, closing costs, mortgage payments, and builder incentives can all affect the final purchase price. For buyers considering a newly built property, understanding the Ontario HST rebate new build rules is especially important as the temporary rebate deadline approaches. The HST new housing rebate can help eligible buyers reduce the tax payable on a qualifying new home.

The $130,000 HST rebate Ontario relief combines the Ontario Enhanced New Housing Rebate and the Ontario New Home Affordability Payment, offering eligible buyers up to $80,000 in provincial relief and up to $50,000 in additional relief.

This guide explains the available rebates, outlines key eligibility dates, and compares the costs of a new build vs. resale Toronto buyers may encounter, including an $800,000 purchase example.

1. Ontario’s Enhanced HST Rebate: What Is Changing?

Ontario introduced temporary enhanced HST relief for eligible buyers of newly built or substantially renovated homes. The measure has two main components: the Ontario Enhanced New Housing Rebate (ENHR) and the Ontario New Home Affordability Payment (ONHAP).

The key dates for qualifying purchase are:

Requirement	Date
The agreement period begins.	April 1, 2026
Agreement deadline	March 31, 2027
Construction must begin by	December 31, 2028
Substantial completion deadline	December 31, 2031

For a home purchased from a builder, the agreement of purchase and sale generally needs to be entered into between April 1, 2026, and March 31, 2027. The construction and completion requirements must also be met.

Simply paying a deposit or expressing interest before the deadline does not secure the rebate. The purchase agreement and property must meet the program conditions.

The enhanced relief for an owner-occupied home is generally intended for a qualifying new or substantially renovated property that will be used as the buyer’s or a qualifying relation’s primary residence. It is not restricted to first-time buyers. Eligible rental properties may qualify under a separate enhanced rental rebate program, with different requirements.

When Does the Enhanced Ontario HST Rebate End?

The current agreement period for the enhanced Ontario HST rebate ends on March 31, 2027. For a qualifying purchase from a builder, the agreement of purchase and sale generally must be signed on or before that date. However, the deadline does not mean the home must be completed by March 31, 2027. The construction must begin by December 31, 2028, and the home must be substantially completed by December 31, 2031.

Buyers considering a new build should confirm the agreement date, construction schedule, completion requirements, and rebate conditions before signing. These details are particularly important for buyers exploring pre-construction properties with completion dates several years away.

How Much Can Buyers Save? Understanding the $130,000 Relief

The headline figure is up to $130,000, but it is not a flat payment that every buyer automatically receives. The relief combines the provincial and federal portions of HST through two Ontario programs.

Program	Maximum relief	What it covers
Ontario Enhanced New Housing Rebate (ENHR)	Up to $80,000	Provincial 8% portion of HST
Ontario New Home Affordability Payment (ONHAP)	Up to $50,000	Relief equivalent to the federal 5% portion of HST
Potential combined relief	Up to $130,000	Combined provincial and federal portions

For eligible homes valued at $1 million or less, the programs can effectively relieve the full 13% HST paid, up to the combined $130,000 limit. For homes valued above $1 million and up to $1.5 million, the combined relief is generally a flat $130,000. The amount is gradually reduced for homes valued above $1.5 million and below $1.85 million.

For homes valued at $1.85 million or more, the enhanced relief is not available, although the existing Ontario new housing rebate may still apply.

How Does the Rebate Change for Homes Above $1 Million?

The available relief depends on the value of the new home.

New-home value	Ontario ENHR	ONHAP
$1 million or less	Up to $80,000	Up to $50,000
Above $1 million to $1.5 million	$80,000	$50,000
Above $1.5 million to below $1.85 million	Partial relief	Partial relief
$1.85 million or more	No enhanced ENHR; existing rebate may apply.	No ONHAP

These figures are program maximums, not guaranteed payments. The amount a buyer receives cannot exceed the eligible HST paid or payable. The final calculation also depends on the applicable rebate rules and any other HST rebate for which the buyer qualifies.

Is the Rebate Only for First-Time Home Buyers?

No. The Ontario ENHR and ONHAP are not limited to first-time buyers. Eligible repeat buyers may also qualify if the property and purchase meet the program requirements, including the applicable primary-residence conditions.

The First-time home buyer GST rebate Ontario program provides additional tax relief for eligible buyers purchasing a qualifying new home. The federal First-Time Home Buyers’ GST/HST Rebate can provide up to $50,000 on a qualifying home valued at $1 million or less, subject to the program's eligibility requirements. The Ontario first-time home buyers’ rebate can provide up to $80,000 on the provincial portion of HST, subject to its eligibility rules.

These programs interact with the enhanced relief. For example, the federal first-time buyer rebate must be considered before calculating the Ontario enhanced rebate, and the Ontario top-up is reduced by the federal portion of an applicable rebate. The total provincial rebates are also subject to the applicable $80,000 limit. Buyers should not assume that every advertised maximum can be added together.

For more information about the purchase process and eligibility considerations, buyers can read IRF’s first-time home buyer guide.

Can You Combine the Federal and Ontario HST Rebates?

Yes, eligible buyers may qualify for federal and Ontario HST relief, but the programs have rules that determine how the amounts interact. The federal first-time home buyers’ rebate may apply to the federal portion of HST, while Ontario rebates address the provincial portion and the additional Ontario payment.

However, buyers cannot simply add every maximum rebate together and assume they will receive that total. The Ontario New Home Affordability Payment is reduced by the federal portion of an HST rebate the buyer is entitled to claim. The combined provincial rebates are also limited by the amount of provincial HST payable and the applicable cap.

The final amount depends on the purchase price, the buyer’s first-time buyer status, the type of property, and the rebates available for that specific transaction. Buyers should have the calculation reviewed before relying on a rebate estimate in their purchase budget.

Do Resale Homes Qualify for the Ontario HST Rebate?

Generally, no. The enhanced HST relief is designed for qualifying newly built or substantially renovated homes. A typical resale home purchased from an existing owner is not subject to HST on its purchase price, so there is no new-home HST rebate to claim.

This is an important distinction when comparing a new build with a resale property. A new home may have HST included in the purchase transaction, with eligible rebates reducing the amount payable. A typical resale purchase does not have HST charged on the sale price.

However, resale buyers still need to budget for other closing expenses. These may include land transfer tax, legal fees, title insurance, inspection costs, and adjustments.

First-time buyers may qualify for land transfer tax relief on either a new home or a resale property:

Ontario land transfer tax refund: Up to $4,000.
Toronto municipal land transfer tax rebate: Up to $4,475 for eligible first-time buyers purchasing in Toronto.

The provincial refund and Toronto rebate have separate eligibility requirements. Ontario’s first-time buyer refund generally requires the purchaser to be at least 18, meet the citizenship or permanent-residency conditions, and have never owned an eligible home anywhere in the world. Occupancy and spouse-related rules also apply. Toronto has its own eligibility requirements.

The key difference is that a resale home does not qualify for the enhanced new-home HST relief, but an eligible first-time buyer may still receive land transfer tax relief.

New Build vs. Resale in Toronto: An $800,000 Example

A price comparison becomes more useful when the tax treatment is included. Consider two hypothetical purchases, each with a pre-tax purchase price of $800,000:

A newly built home purchased from a builder.
A resale home purchased from an existing owner.

For this illustration, assume the full $800,000 new-home price is subject to 13% HST and the buyer qualifies for the full applicable relief.

Cost item	New build	Resale
Purchase price before HST	$800,000	$800,000
HST at 13%	$104,000	Not applicable
Potential HST relief	Up to $104,000	Not applicable
HST after full relief	$0	$0
Land transfer tax	Applies	Applies

At an $800,000 purchase price, the HST calculation on the new home is:

Federal 5% portion: $40,000
Provincial 8% portion: $64,000
Total HST: $104,000

If the buyer qualifies for full relief on both portions, the applicable rebates could offset the entire $104,000 in HST in this example. The buyer would not receive an additional $26,000 simply because the advertised maximum is $130,000. The rebate cannot exceed the eligible HST paid or payable.

The resale property does not carry HST on its purchase price. However, both buyers must account for land transfer tax and other closing expenses. This example also assumes that the builder’s price is stated before HST. Actual builder agreements may show prices differently, so buyers should confirm whether HST and the assumed rebate are already reflected in the advertised price.

Is It Cheaper To Buy A New Build Or A Resale Home In Toronto?

Neither option is automatically cheaper. A qualifying new build may receive substantial HST relief, which can reduce the difference between its pre-tax price and the cost of a comparable resale property. A resale home does not carry HST on its purchase price, but its condition, age, renovation needs, and location can affect the overall cost.

For example, if an $800,000 new home qualifies for full relief on the $104,000 HST, the HST itself may not make it more expensive than an $800,000 resale property. However, the buyer still needs to compare land transfer tax, closing adjustments, builder fees, property condition, condo fees, and other ongoing expenses.

The best new build vs. resale Toronto decision depends on the full cost of buying and owning the property, not just the advertised price.

What Should Buyers Compare Beyond the Purchase Price?

The HST rebate is an important part of the financial comparison, but it is only one factor. Buyers should consider the following costs and property details before choosing between a new build and a resale home.

Builder Incentives And Pre-Construction Costs

A new build may offer modern layouts, new appliances, warranties, and the opportunity to purchase before construction is complete. Some builders may also offer incentives, upgrades, or credits.

However, buyers considering pre-construction condos should review the purchase agreement carefully. Deposits may be paid in stages, and the final closing date can be years away. Construction delays, occupancy fees, development charges, utility connection fees, and other adjustments may affect the final cost.

Buyers researching the HST rebate pre-construction condo rules should pay particular attention to the agreement date and construction requirements. A qualifying pre-construction purchase may be eligible, but the property and agreement must satisfy the program conditions.

Before signing, buyers should understand:

The deposit schedule and how deposits are protected.
The builder’s estimated occupancy and final closing dates.
The agreement’s delay provisions.
Which development charges and closing adjustments may be passed on to the buyer.
Whether assignment sales are permitted and what fees or restrictions apply.
How HST and the applicable rebate are treated in the purchase price and closing statement.

Assignment buyers need particular care. The original purchase agreement and assignment transaction may have specific dates and eligibility requirements. Buyers should confirm how the assignment rules apply to their circumstances rather than assuming the original purchaser’s eligibility automatically transfers.

Resale Property Condition and Immediate Costs

A resale property may offer an established location, mature landscaping, and a clearer picture of the surrounding neighbourhood. Buyers can also inspect the actual property before completing the purchase.

On the other hand, an older home may need repairs or upgrades. Buyers should consider the condition of the roof, windows, plumbing, electrical systems, heating and cooling equipment, and major appliances. Condo buyers should review the status certificate, reserve fund information, maintenance fees, and any planned special assessments.

Buyers can compare available resale homes for sale to assess asking prices, property condition, location, and features against new-build options.

Land Transfer Tax and Closing Costs

Land transfer tax applies to both new and resale purchases. In Toronto, buyers generally pay both Ontario land transfer tax and the City of Toronto’s municipal land transfer tax.

Eligible first-time buyers may receive refunds, but the amount depends on the purchase price and the buyer’s eligibility. The maximum provincial refund is $4,000, while the maximum Toronto first-time buyer rebate is $4,475.

Buyers can review the available land transfer tax rebates to understand the relief that may apply. IRF’s land transfer tax calculator can also help estimate this expense.

Remember that land transfer tax is only one closing cost. Legal fees, title insurance, inspections, adjustments, moving costs, and mortgage-related expenses should also be included in the budget.

Mortgage Affordability and Monthly Expenses

A rebate can reduce the upfront cost of a qualifying new home, but it does not automatically make the monthly mortgage affordable.

Buyers should compare the down payment, mortgage amount, interest rate, amortization period, property taxes, insurance, condo fees, and utilities. For a pre-construction property, they should also consider whether their financial circumstances could change before final closing.

IRF’s mortgage affordability calculator can help buyers estimate a potential mortgage budget before deciding which properties to view.

What Does the Latest GTA Market Data Mean for Buyers?

The latest available Toronto Regional Real Estate Board (TRREB) figures for October 2026 show a market in which buyers may have room to compare properties and negotiate.

According to TRREB:

GTA REALTORS® reported 5,603 home sales, down 7.9% year over year.
There were 14,173 new listings, down 11.9% year over year.
The average selling price was $1,024,108, down 2.7% year over year.
The MLS® Home Price Index Composite benchmark was down 4.3% year over year.

These figures provide useful market context, but they do not establish that every neighbourhood or property type is a buyer’s market. Average prices can also change based on the mix of homes sold.

For buyers comparing new builds and resale homes, the figures reinforce the value of assessing each property individually. A resale seller may be open to negotiating on price or closing terms. A builder may offer incentives or upgrades instead of reducing the headline price. Buyers should compare the actual value of each offer rather than focusing only on the advertised discount.

How Do Buyers Claim the Enhanced HST Rebate?

The application process depends on the property type and whether the builder credits the applicable rebate at closing.

For eligible homes purchased from a builder, the buyer and builder may arrange for the Ontario ENHR to be credited through the purchase process. The Ontario New Home Affordability Payment is administered separately by the province. The updated CRA application process includes consent to share the relevant information with Ontario, so a separate ONHAP application is not required when the required consent is provided.

The CRA identifies these forms for qualifying builder purchases:

GST190: GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
RC7190-ON: GST190 Ontario Rebate Schedule.

If the builder does not credit the applicable rebate, the buyer may be able to apply after the purchase, provided all eligibility requirements are met.

Before closing, buyers should confirm the following with the builder and their legal or tax professional:

Whether the purchase agreement qualifies for the enhanced rebate.
Whether the builder will credit the eligible rebate at closing.
Which forms and supporting documents are required.
Whether the purchase price already includes an assumed rebate.
Whether the buyer meets the primary-residence and other eligibility conditions.
Whether any first-time buyer rebate affects the final calculation.

Do not assume that a builder’s advertised price guarantees rebate eligibility. If a rebate is credited but the buyer later turns out to be ineligible, the buyer may be responsible for repaying the amount.

Is a New Build or Resale Home the Better Buy?

There is no single answer for every Ontario buyer. A qualifying new build may offer substantial HST relief, modern features, and the opportunity to purchase a home that has not previously been occupied. A resale home avoids HST on the purchase price and may offer more immediate possession, established surroundings, and a clearer view of the property's condition.

The key is to compare the total cost of ownership, not just the advertised purchase price. Include HST and available rebates, land transfer tax, closing adjustments, potential repairs, condo fees, mortgage payments, and builder incentives.

The Ontario HST rebate new build rules may make a qualifying new property more competitive, but buyers must meet the agreement, construction, completion, and eligibility requirements. With the HST rebate deadline March 2027 approaching, it is important to check the terms before signing a purchase agreement.

If you are weighing a new build against a resale property in Toronto or the GTA, speak with a new-home specialist at International Realty Firm. The team can help you explore available property options and understand the factors to compare before making your decision.

Frequently Asked Questions

What happens if I sign a new-home agreement after March 31, 2027?

A builder purchase agreement entered into after March 31, 2027, generally will not qualify for the temporary Ontario ENHR. Buyers may still qualify for other new-housing rebates if they meet the relevant requirements, but they should not assume the enhanced relief will apply.

Can repeat buyers receive the enhanced Ontario HST rebate?

Yes. The Ontario ENHR and ONHAP are not limited to first-time buyers. Repeat buyers may qualify if the home and purchase meet the program conditions, including the applicable primary-residence requirement.

Does a pre-construction condo qualify for the rebate?

A qualifying pre-construction condominium purchased from a builder may qualify. The agreement date, construction start, substantial completion, purchase value, and intended use must meet the program rules. Buyers should confirm the details before signing.

Can I receive the full $130,000 if my new home costs less than $1 million?

Not necessarily. The combined relief is limited by the HST actually paid or payable and the applicable rebate rules. For example, an $800,000 home subject to 13% HST would have $104,000 in HST before eligible rebates. The buyer cannot receive $130,000 when the eligible HST amount is lower.

Can I claim the Ontario enhanced rebate on a home I intend to rent out?

The owner-occupied Ontario ENHR generally requires the home to be used as the buyer’s or a qualifying relation’s primary residence. Qualifying rental properties are covered by a separate enhanced rental rebate program with its own conditions. Buyers should confirm which program applies before assuming a rental property qualifies.