First-Time Home Buyer HST Rebate in Ontario: How to Get Up to $130,000 Back on a New Build

If you're buying your first home and you're open to a new build, the first-time home buyer HST rebate in Ontario can be worth more than a minimum down payment. On a $700,000 new home, the combined federal and provincial rebate works out to about $91,000.

The federal rebate received Royal Assent on March 12, 2026, and the Canada Revenue Agency is now accepting applications. Ontario's matching rebate on the provincial part of the HST is also available, and you can claim both on the same application.

The catch is that the details matter. Eligibility depends on your ownership history, the type of home, the date you signed with the builder, and who files the forms. Get one of those wrong and the money can stall.

What the Rebate Is Worth at Different Prices

The GST rebate on new homes for first-time buyers covers 100% of the GST (the federal 5% part of the HST) on homes valued up to $1 million. Ontario's version covers the 8% provincial part, up to $80,000. Both act as top-ups to the regular new housing rebate, so you don't lose that base amount.

Between $1 million and $1.5 million the federal rebate shrinks gradually, and at $1.5 million or more there's no first-time buyer rebate at all. Most new builds in Windsor-Essex and Chatham-Kent sit well under the $1 million mark, so local buyers are usually in line for the full amount.

Who Qualifies for the First-Time Home Buyer HST Rebate in Ontario

The CRA's definition is stricter than most people expect. You must be at least 18, a Canadian citizen or permanent resident, and you can't have lived as your primary residence in a home owned by you or your spouse or common-law partner during the year you take ownership or the previous four calendar years.

That four-year lookback is measured from the year ownership transfers, not the year you sign. The CRA's own example: someone who sold their last home in June 2022 doesn't qualify if they close on a new build in August 2026, but they do qualify if closing slides to February 2027. With pre-construction homes, a delayed closing can work in your favour.

Two more conditions trip people up. Neither you nor your spouse can have received this rebate before, and you must be the first person to live in the home after construction is substantially finished.

Which Homes Qualify for the Ontario New Home HST Rebate

Resale homes are out. They don't usually carry HST, so there's nothing to refund. The rebate covers:

• A newly built or substantially renovated home bought from a builder, including one on land leased for at least 20 years
• A home you build yourself, or hire someone to build, on land you own or lease
• A share in a new co-operative housing corporation

For builder purchases, your agreement of purchase and sale must be signed on or after March 20, 2025 and before 2031. Construction has to start before 2031 and finish before 2036. You also have to buy the home as your primary place of residence, so investment units don't count.

How to Claim the Rebate When Buying a New Build in Ontario

Most of the work happens around closing. Here's the order to follow:

1. Before you sign, ask the builder in writing whether they'll credit the federal and Ontario first-time buyer rebates on your statement of adjustments, or only the standard new housing rebate.
2. Have your real estate lawyer review the purchase price clause. Some builder contracts assume the rebate is assigned to them and price the home accordingly.
3. At closing, sign Form GST190 in front of the builder or your lawyer. In Ontario, Form RC7190-ON goes with it for the provincial part.
4. If the builder doesn't credit the rebate, file both forms yourself through your CRA account. You have two years from the date ownership transfers.

Not a first-time buyer? Ontario has also proposed a temporary expansion that would give any eligible buyer up to $130,000 in HST relief on new homes, for builder agreements signed between April 1, 2026 and March 31, 2027. The province described it as subject to federal regulatory changes, so confirm its current status with your lawyer before counting on it.