THE QUICK ANSWER
Ontario new-home purchases can involve more than one rebate program. The amount depends on the program, buyer eligibility, purchase price, agreement dates and intended use.
- Ask whether advertised pricing already assumes a rebate.
- Federal first-time buyer relief and Ontario relief have distinct rules.
- Have your lawyer confirm eligibility and the contract treatment before relying on savings.
Federal and Ontario first-time buyer relief
Eligible first-time buyers can receive full relief from the federal GST portion on qualifying new homes valued up to $1 million, with reduced relief between $1 million and $1.5 million. Ontario’s separate first-time buyer rebate provides up to $80,000 of provincial HST relief and follows the federal eligibility conditions. These are maximum benefits, not automatic discounts on every new home.
More detail: CRA: first-time home buyers’ GST/HST rebate ↗
The temporary Ontario enhanced rebate
The Ontario enhanced new housing rebate is a temporary top-up to the existing provincial new housing rebate. CRA guidance identifies an April 1, 2026 to March 31, 2027 window for qualifying builder purchases. Additional eligibility and construction conditions apply. Eligible buyers may also qualify for Ontario’s separate new home affordability payment.
Do not add the maximum amounts from different programs together yourself. Ask which program applies and how overlapping relief is handled for your transaction.
More detail: CRA: Ontario enhanced new housing rebate ↗
The questions that determine your next step
Bring the signed agreement and a written price breakdown to your lawyer. Eligibility is more than a check box labelled “first-time buyer.” Have your adviser review the facts that apply to you and anyone buying with you.
- Who is purchasing, and what is each buyer’s homeownership history?
- Will the home be a primary residence or a rental property?
- When was the agreement signed, and what are the construction and completion dates?
- What is the purchase price before the assumed rebates?
- Has the builder credited or received an assignment of any rebate?
More detail: CRA: first-time buyer eligibility ↗
Read an “after-rebate” price carefully
Ask for a breakdown showing the selected home’s price, applicable taxes, each assumed rebate and the amount due at closing. Keep incentives such as upgrades or closing credits separate so you can see how the final figure was calculated.
If you do not qualify for an assumed rebate, your cost may differ from the advertised amount. CRA says buyers can be required to repay an ineligible Ontario enhanced rebate credited by a builder. Confirm responsibility in writing before signing.
More detail: CRA: Ontario enhanced new housing rebate ↗
Get the project-specific breakdown
The MCS team will follow up with current pricing, available incentives and the project documents needed for your review. Your lawyer or tax adviser can assess eligibility and explain who applies, who receives the rebate and when.
Treat a rebate as part of a documented purchase budget. Until the amount and payment timing are confirmed, keep a separate scenario showing what you would need if that credit is unavailable at closing.
SAVE FOR YOUR SHORTLIST
Your next-step checklist
- Request pricing before and after each assumed rebate.
- Identify the exact program names in the agreement.
- Confirm buyer, use and date requirements with your adviser.
- Confirm who claims the rebate and who receives the funds.
- Recheck current rules before signing and again before closing.
Quick answers
Does every buyer qualify for the advertised after-rebate price?
No. Eligibility and contract terms vary. Request the full price breakdown and confirm your own eligibility before using the advertised figure as your budget.
Do rental purchases use the same rules?
Do not assume so. Have your adviser assess rental-specific programs and intended-use requirements before applying owner-occupier or first-time buyer relief.
Can MCS calculate my exact tax entitlement?
MCS will help obtain the current pricing and project details. Your lawyer or tax adviser should confirm the entitlement for your circumstances.
General information for planning. Confirm financing, legal and tax details with the appropriate professional for your purchase.