Ontario’s New-Home HST Relief Delayed: What Buyers Need to Know Now
If you’re planning to buy a new home in Ontario, you could save up to $56,000 in HST — but not yet. The province has passed legislation for expanded HST relief, but the Canada Revenue Agency (CRA) says the rules aren’t ready. This means uncertainty and potential cash-flow gaps at closing.
Here’s what you need to know right now.
What’s happening?
Ontario passed a law to expand HST relief on new homes purchased between April 1, 2026 and March 31, 2027. But the CRA says the measures are not yet available. The province still needs to finalize regulations and set up administrative systems before anyone can claim the rebate.
For example, on a $1-million new home, a first-time buyer could currently get $74,000 in credits through existing federal and Ontario rebates. Once the new rules take effect, they may recover an additional $56,000. However, the CRA warns that different parts of the relief may become available at different times, and direct payments could take up to six months.
Who is affected?
- Anyone buying a new home in Ontario — especially first-time buyers
- Builders and lenders — they’re exploring workarounds like advance credits, but no formal framework exists yet
- Anyone closing on a new home soon — you may need to finance the HST upfront and apply for the rebate later
What you should do
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Check with your builder or lender about interim arrangements. Some may offer advance credits, but this is not guaranteed.
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Claim the federal first-time homebuyer GST/HST rebate now — it’s already available for homes up to $1.5 million. Don’t wait.
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Prepare for delays — the Ontario relief may not be ready for months. You may need to pay the full HST at closing and apply for the rebate later.
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Keep records of your purchase — including the agreement of purchase and sale, closing documents, and any HST paid. You’ll need these to apply once the rules are finalized.
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Stay updated — watch for CRA announcements and Ontario government updates on when the rebate becomes available.
Bottom line
Ontario’s expanded HST relief on new homes could save you up to $56,000, but it’s not available yet. If you’re buying soon, plan to finance the HST upfront and apply for the rebate later. Claim the existing federal rebate now, and stay in touch with your builder and lender for workarounds. Don’t assume the savings will be there at closing — be ready for delays.