Ontario Enhanced New Housing Rebate

GST/HST Notices - Notice 346
August 2026

This version replaces the one dated June 2026. This notice has been updated to include additional information about eligibility for the Ontario enhanced new housing rebate and how to apply for the rebate.

Table of Contents

• Overview
• Meaning of significant terms
• Eligibility
  • Homes purchased from a builder
  • Purchase of building only on leased land
  • Owner-built homes (including substantial renovations)
  • Shares of a cooperative housing corporation (co-op)
• Restrictions and special rules
  • Assignment sales
  • Change in agreement
  • New agreement
• Maximum combined rebate amount
• Ontario new home affordability payment (ONHAP)
• How to apply
  • Homes purchased from a builder – Rebates paid or credited by the builder
  • Homes purchased from a builder – Rebates not paid or credited by the builder
  • Owner-built homes
• Related links

Overview

Enhanced housing rebates were introduced to provide relief of the 8% provincial part of the HST on certain new homes and new residential rental units situated in Ontario.

The Ontario enhanced new housing rebate (ENHR), together with the Ontario new housing rebate, provides eligible individuals with combined relief of up to $80,000 of the 8% provincial part of the HST paid on the purchase or construction of a new or substantially renovated home valued up to $1,850,000. The home must be for use as the individual's or their relation's primary place of residence.

This rebate is generally available for the purchase of a home from a builder where the agreement of purchase and sale was entered into on or after April 1, 2026, and on or before March 31, 2027. For owner-built homes, the rebate is generally available where construction begins on or after April 1, 2026, and on or before March 31, 2027.

The Ontario new home affordability payment (ONHAP), administered by the Province of Ontario, provides up to $50,000 to individuals who are also entitled to the Ontario ENHR. The amount is equivalent to up to 100% of the 5% federal part of the HST paid. The ONHAP is reduced by the federal part of any GST/HST new housing rebate or first-time home buyers' GST/HST rebate to which an individual is entitled. 

Meaning of significant terms

Primary place of residence of an individual generally means the residence that the individual lives in on a permanent basis. An individual may have more than one residence, but is considered to have only one primary place of residence. For more information, refer to GST/HST Policy Statement P-228, Primary Place of Residence.

Relation of an individual means another individual who is related by blood, marriage, common-law partnership, or adoption within the meaning of the Income Tax Act.

Blood relation is limited to parents, children or other descendants, or siblings. Marriage relation includes a spouse or a person who is connected to the spouse by blood. Common-law partnership includes a common-law partner or a person who is connected to the common-law partner by blood. Adoption is the relation between the adoptive parent and the individual that has been adopted, either legally or in fact, as the child of the parent or of an individual who is connected to the parent by blood (except a brother or sister). For the purposes of this rebate, a relation can also be a former spouse or a former common-law partner.

Residential complex includes a building or part of a building in which one or more residential units are located, along with areas that are reasonably necessary for the use and enjoyment of the building as a place of residence for individuals. These include:

• part of any common areas and other appurtenances to the building
• the land on which the building is situated
• the part of the land immediately adjoining the building

A residential complex generally does not include a building or that part of a building that is a hotel, a motel, an inn, a boarding house, or similar place. For more information, refer to GST/HST Policy Statement P-099, The Meaning of 'Hotel', 'Motel', 'Inn', 'Boarding House', 'Lodging House' and 'Other Similar Premises', as used in the definition of 'Residential Complex' and 'Residential Unit'.

Residential condominium unit means a residential unit that is for use as a place of residence and that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description (or similar plan or description registered under provincial law). A residential condominium unit includes any interest in the common areas as well as any interest in land pertaining to the ownership of the unit.

Residential unit means:

• a detached house, semi-detached house, row house unit, condominium unit, mobile home, floating home, or apartment
• a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house, or in a residence for students, seniors, individuals with a disability, or other individuals
• any other similar premises or the part of such housing listed above that:
  • is occupied by an individual as a place of residence or lodging
  • is supplied by way of lease, licence, or similar arrangement as a place of residence or lodging for individuals
  • is vacant, but was last occupied or supplied as a place of residence or lodging for individuals
  • has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals

Single unit residential complex means a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit. For the purposes of the rebates described in this notice, a single unit residential complex generally includes a residential complex containing not more than two residential units (for example, a duplex).

A single unit residential complex generally includes other structures near or adjacent to the unit, such as detached garages or sheds. It also includes the land subjacent and immediately contiguous to the unit that can reasonably be regarded as contributing to the use and enjoyment of the unit as a place of residence. The Canada Revenue Agency (CRA) considers that up to half a hectare (1.23 acres) of land may be reasonably necessary for the use and enjoyment of a unit. However, in some cases, more than half a hectare of land may be considered to form part of the complex.

Substantial completion generally means that the construction or substantial renovation of a residential complex is at a stage of completion (generally 90% or more) where an individual can reasonably inhabit the premises. Minor repairs, adjustments, or outstanding upgrades are not considered to impair the use and enjoyment of the residential complex as a place of residence.

Substantial renovation of a residential complex generally means the renovation of the whole or that part of a building that forms part of a residential complex to such an extent that at least 90% of the building or part (other than the foundation, external walls, interior supporting walls, floors, roof, and staircases) that existed immediately before the renovation has been removed or replaced. After completion of the renovation, the building or part must be, or form part of, a residential complex. For more information, refer to GST/HST Technical Information Bulletin B-092, Substantial Renovations and the GST/HST New Housing Rebate.

Eligibility

The Ontario ENHR applies to the same types of housing and generally follows the same eligibility conditions as the Ontario new housing rebate, subject to additional conditions described in this notice.

The Ontario ENHR may be available to individuals who:

• buy a new or substantially renovated residential complex from a builder for use as their or their relation's primary place of residence
• buy a share of the capital stock of a cooperative housing corporation (co-op) for the purpose of inhabiting a new or substantially renovated residential unit in a residential complex as their or their relation's primary place of residence
• build or substantially renovate their own residential complex, or hire another person to build or substantially renovate a residential complex for them, for use as their or their relation's primary place of residence

For more information on the types of housing and the general eligibility conditions for the Ontario new housing rebate, refer to Guide RC4028, GST/HST New Housing Rebate.

Homes purchased from a builder

The Ontario ENHR applies to the purchase of a single unit residential complex or residential condominium unit from a builder.

Where an individual meets the conditions for the Ontario new housing rebate in respect of a residential complex purchased from a builder, the Ontario ENHR may be available if the agreement of purchase and sale is entered into on or after April 1, 2026, and on or before March 31, 2027.

The following criteria must also be met:

• The construction or substantial renovation of the residential complex must begin on or before December 31, 2028, and be substantially completed on or before December 31, 2031
• The total consideration payable for the supply of the residential complex or for any other taxable supply of an interest in the residential complex is less than $1,850,000
• The GST/HST in respect of the supply of the residential complex to the individual becomes payable on or before December 31, 2032
• The residential complex is acquired for use as the individual's or their relation's primary place of residence

Purchase of building only on leased land

The Ontario ENHR applies to the purchase of a building or part thereof that forms part of a newly constructed residential complex that is a single unit residential complex or residential condominium unit, where the land is leased from the builder on a long-term basis (at least 20 years) or with an option to purchase.

Where an individual meets the conditions for the Ontario new housing rebate in respect of a building or part of a building supplied with land under a long-term lease, the Ontario ENHR may be available if the agreement of purchase and sale is entered into on or after April 1, 2026, and on or before March 31, 2027.

The following criteria must also be met:

• The construction or substantial renovation of the residential complex must begin on or before December 31, 2028, and be substantially completed on or before December 31, 2031
• The fair market value of the residential complex at the time possession is given to the individual under the agreement is less than $2,090,500
• Possession of the residential complex is given to the individual under the agreement on or before December 31, 2032
• The residential complex is acquired for use as the individual's or their relation's primary place of residence

Owner-built homes (including substantial renovations)

The Ontario ENHR applies where an individual constructs or substantially renovates, or engages another person to construct or substantially renovate, a single unit residential complex or residential condominium unit.

Where an individual meets the conditions for the Ontario new housing rebate in respect of an owner-built home, the Ontario ENHR may be available if the construction or substantial renovation of the residential complex begins on or after April 1, 2026, and on or before March 31, 2027.

The following criteria must also be met:

• The construction or substantial renovation of the residential complex must be substantially completed before 2030
• The fair market value of the residential complex at the time the construction or substantial renovation is substantially completed is less than $1,850,000
• The individual constructs or substantially renovates the residential complex for use as their or their relation's primary place of residence

Shares of a cooperative housing corporation (co-op)

The Ontario ENHR applies to the purchase of a share of the capital stock of a co-op that entitles an individual to possession of a residential unit in a residential complex.

Where an individual meets the conditions for the Ontario new housing rebate in respect of the purchase of a share of a co-op that entitles the individual to possession of new or substantially renovated co-op housing, the Ontario ENHR may be available if the agreement of purchase and sale is entered into on or after April 1, 2026, and on or before March 31, 2027.

The following criteria must also be met:

• The total consideration payable for the supply to the individual of the share or an interest in the co-op, residential complex, or residential unit is less than $2,090,500
• The construction or substantial renovation of the residential complex must begin on or before December 31, 2028, and be substantially completed on or before December 31, 2031
• Ownership of the share is transferred to the individual on or before December 31, 2032
• The individual acquires the share of the capital stock of the co-op for the purpose of using a residential unit in the complex as their or their relation's primary place of residence

Restrictions and special rules

Assignment sales

If, under an assignment sale, an individual (the assignee) assumes the rights and obligations of another person that is a purchaser of a new home (the assignor) under an agreement of purchase and sale with a builder, the Ontario ENHR is only available if both of the following conditions are met:

• the original agreement of purchase and sale and the assignment agreement are both entered into on or after April 1, 2026, and on or before March 31, 2027
• all other eligibility criteria for the rebate are met

Change in agreement

If an individual entered into an agreement of purchase and sale for a residential complex with a builder before April 1, 2026, and the agreement is later varied, altered, or assigned, the agreement may otherwise be considered to have been entered into on or after April 1, 2026. However, for purposes of the Ontario ENHR, the agreement is deemed to have been entered into before April 1, 2026. As a result, the individual is not entitled to the Ontario ENHR. However, the individual may still be eligible for the Ontario new housing rebate or the Ontario first-time home buyers' rebate.

New agreement

Where a purchaser or group of purchasers entered into an agreement of purchase and sale with a builder in respect of a particular residential complex before April 1, 2026, and later terminates the agreement, the purchaser or group of purchasers may not be eligible to apply for the Ontario ENHR if they enter into a new agreement after April 1, 2026, for the particular residential complex or another one.

Specifically, a new agreement of purchase and sale may be deemed to have been entered into before April 2026 if all of the following conditions are met:

• The purchaser or group of purchasers, or another purchaser or group of purchasers not dealing at arm's length with the purchaser or group of purchasers, enters into the new agreement of purchase and sale
• The new agreement of purchase and sale is in respect of the particular residential complex or another residential complex
• The new agreement of purchase and sale is entered into with any of the following:
  • the builder
  • another person not dealing at arm's length with the builder
  • another person that is a builder of the particular residential complex
• The agreement may not reasonably be considered to have been entered into primarily for bona fide purposes other than to obtain the Ontario ENHR

For the purposes of this rule, a group of persons and a particular person are not dealing with each other at arm's length if the particular person is a member of the group, or the particular person is not dealing at arm's length with one or more members of the group. Additionally, a particular group of persons and another group of persons are not dealing with each other at arm's length if one or more persons are members of both groups, or one or more members of the particular group are not dealing at arm's length with one or more members of the other group.

Maximum combined rebate amount

If an individual is eligible for both the Ontario ENHR and the Ontario first-time home buyers' rebate for the 8% provincial part of the HST, they can choose to claim either or both of these rebates. However, the total amount of all rebates for the 8% provincial part of the HST cannot exceed the lesser of $80,000 and the provincial part of the HST payable for the purchase or construction of the home.

This means that the rebate cannot exceed the 8% provincial part of the HST paid or payable, including any amount paid or credited by the builder.

Ontario new home affordability payment (ONHAP)

An individual who is eligible for the Ontario ENHR may also be eligible for the ONHAP, which is administered by the Province of Ontario. The ONHAP provides up to $50,000 (the equivalent of up to 100% of the 5% federal part of the HST) on a new or substantially renovated home. Similar to other new housing rebates, the builder may pay or credit the ONHAP to the buyer.

The ONHAP is reduced by the federal part of any GST/HST new housing rebate or first-time home buyers' GST/HST rebate to which the individual is entitled. If the individual is eligible for the first-time home buyers' GST/HST rebate for the 5% federal part of the HST, they must claim that rebate first to determine their eligibility for the ONHAP. If any portion of the 5% federal part of the HST cannot be rebated through the first-time home buyers' GST/HST rebate, the individual may be able to recover that amount through the ONHAP.

A separate rebate application is not required to claim the ONHAP. The individual can fill out the "ONHAP – Claimant's consent to share information" section of their GST/HST new housing rebate application form to allow the CRA to provide the Province of Ontario with the relevant information (that is, contact, banking, and rebate information) needed to administer the payment. If the builder pays or credits the ONHAP to the buyer, the builder can fill out the "ONHAP – Builder's consent to share information" section of the rebate application form to receive the ONHAP from the Province of Ontario.

If consent to share information is provided on the rebate application, the CRA will share the relevant information with the Province of Ontario once the rebate application has been assessed. The ONHAP will be issued separately by the Province of Ontario.

If consent is not provided, the individual or builder must provide the required information directly to the Province of Ontario to receive the ONHAP.

For technical enquiries about the ONHAP, call ServiceOntario at 1-800-267-8097.

How to apply

Homes purchased from a builder – Rebates paid or credited by the builder

The Ontario ENHR and the ONHAP can be paid or credited to the purchaser by the builder, similar to other GST/HST new housing rebates. Both the purchaser and the builder must review the eligibility criteria to ensure that the purchaser is eligible for the rebate(s) being claimed.

Where a builder pays or credits a housing rebate amount to a purchaser and the builder knew or ought to have known that the purchaser was not entitled to the rebate, or that the amount credited was more than the purchaser's entitlement, the builder and purchaser are jointly and severally liable to repay the rebate amount to the CRA.

Individuals can claim all new housing rebates using Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder, and Form RC7190-ON, GST190 Ontario Rebate Schedule.

The builder must report the sale of the residential complex and the GST/HST collected on the sale on its GST/HST return. The builder must also include the rebate amount paid or credited to the purchaser on its GST/HST return for the reporting period in which the amount was paid or credited. The ONHAP is not included on the builder's GST/HST return because it is paid separately by the Province of Ontario. The builder must submit the completed Form GST190 and Form RC7190-ON with its GST/HST return.

Where an individual is eligible for the ONHAP, the individual and the builder must indicate on Form GST190 whether they consent to the CRA sharing relevant information (that is, contact, banking, and rebate information) with the Province of Ontario to facilitate the payment of the ONHAP. If consent is not provided, the individual or builder must provide the required information directly to the Province of Ontario to receive the ONHAP.

Homes purchased from a builder – Rebates not paid or credited by the builder

For homes purchased from a builder where any new housing rebate is not paid or credited to the purchaser by the builder, or for the purchase of a share of the capital stock of a co-op, individuals can claim the applicable new housing rebates using Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder, and Form RC7190-ON, GST190 Ontario Rebate Schedule.

Where an individual is eligible for the ONHAP, the individual must indicate on Form GST190 whether they consent to the CRA sharing relevant information (that is, contact, banking, and rebate information) with the Province of Ontario to facilitate the payment of the ONHAP. If consent is not provided, the individual must provide the required information directly to the Province of Ontario to receive the ONHAP. 

Owner-built homes

Individuals who build a new home, substantially renovate their home, or convert their home from non-residential property can claim all applicable new housing rebates using Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses, and Form RC7191-ON, GST191 Ontario Rebate Schedule.

Where an individual is eligible for the ONHAP, the individual must indicate on Form GST191 whether they consent to the CRA sharing relevant information (that is, contact, banking, and rebate information) with the Province of Ontario to facilitate the payment of the ONHAP. If consent is not provided, the individual must provide the required information directly to the Province of Ontario to receive the ONHAP.

Related links

For related information, go to:

• Ontario enhanced new housing rebate (ENHR)
• GST/HST new housing rebate
• First-time home buyers' (FTHB) GST/HST rebate