Ontario's $24,000 New Housing Rebate Ends April 1, 2027: Transition Rules Explained

If you are buying a newly built home in Ontario, a long-standing tax rebate is now on a countdown. The 2026 Ontario Economic Outlook and Fiscal Review, the province's Fall Economic Statement released on October 29, 2026, confirms the government is proceeding with the elimination of the New Housing Rebate (NHR) and the New Residential Rental Property Rebate (NRRPR). These rebates currently return 75 per cent of the provincial portion of the HST on the first $400,000 in value of a new home or rental unit, up to a maximum rebate of $24,000. They will generally become unavailable for new purchases and transactions that begin on or after April 1, 2027.

Here is what is ending, who keeps the rebate under the transition rules, and what buyers should check before signing anything.

What the rebate does today

Ontario's New Housing Rebate has been part of the math on new construction purchases for years. When an eligible buyer purchases a newly constructed or substantially renovated home from a builder for use as a primary residence, the rebate offsets part of the 8 per cent provincial portion of the HST. The parallel New Residential Rental Property Rebate does the same for qualifying rental properties. The current formula is 75 per cent of the provincial portion of the HST on the first $400,000 in value, capped at $24,000. The Canada Revenue Agency (CRA) administers these rebates, and the rebate may be credited by the builder at closing or claimed directly, depending on the transaction.

What the Fall Economic Statement confirmed

The 2026 Fall Economic Statement, in its Annex of tax measures, states that Ontario is proceeding with eliminating the NHR and NRRPR. Two points matter most for everyday buyers:

• The rebates will generally become unavailable for new purchases and transactions that begin on or after April 1, 2027.
• The elimination does not affect eligibility or relief amounts for the temporary enhanced new housing relief that is already in force.

That second point is important. The temporary enhanced program, which can provide up to $130,000 in combined relief on eligible new homes valued up to $1.5 million, keeps running on its own schedule. It is the underlying $24,000 rebate, the one that has existed apart from any temporary enhancement, that is being wound down.

Who keeps the rebate after April 1, 2027

The Fall Economic Statement sets out transition rules, and they turn on when the transaction begins, not when the deal closes:

• New homes purchased from a builder: the rebate remains available if the agreement of purchase and sale was entered into on or before March 31, 2027.
• Owner-built homes: it remains available if construction or substantial renovation begins on or before March 31, 2027.
• Co-operative housing: it remains available if the agreement for the share was entered into on or before March 31, 2027.
• Rental properties: the NRRPR remains available if the purchase agreement with the builder was entered into, or the construction began, on or before March 31, 2027.

The practical takeaway is that the agreement date controls. A buyer who signs with a builder in March 2027 for a home that will not be substantially completed until 2029 may keep access to the rebate. A buyer who signs on or after April 1, 2027 may not, even if the same model unit in the same development is priced the same way.

The temporary enhanced relief runs to March 31, 2027

Separately, the enhanced program continues for agreements of purchase and sale entered into between April 1, 2026 and March 31, 2027:

• The Ontario Enhanced New Housing Rebate and its rental counterpart can provide relief of up to $80,000 on the 8 per cent provincial portion of the HST.
• The Ontario New Home Affordability Payment can top that up by up to $50,000, equivalent to up to 100 per cent of the 5 per cent federal portion.
• Combined relief is up to $130,000 on homes valued up to $1.5 million, with partial relief between $1.5 million and $1.85 million. At $1.85 million and above, only the existing $24,000 rebate has been available, and that is the rebate that is ending.
• Applications for the enhanced rebates go through CRA forms, no separate Ontario application is required for the affordability payment, and Ontario expects to begin issuing those payments in early 2027.

What this means for buyers

After April 1, 2027, a repeat buyer purchasing a newly built home in Ontario may receive no provincial new housing rebate at all. First-time buyers may still qualify for separate federal and Ontario first-time home buyers' GST/HST rebates, which are distinct programs. The CRA's pages on the first-time home buyers' rebate and on GST/HST Notice 346, Ontario Enhanced New Housing Rebate, set out those conditions.

Three dates, three different meanings: the signing date of the agreement controls rebate eligibility, the construction and completion deadlines control the enhanced program, and the closing date on its own does not save a rebate. Before you rely on any rebate when budgeting for a purchase, confirm which window your agreement falls into, ask whether the builder's advertised price already assumes an assigned rebate, and keep the agreement, statement of adjustments and construction records.

The bottom line

Ontario's $24,000 new housing rebate is not disappearing overnight, but it has an end date, and the paperwork you sign decides whether you keep it. If you are weighing a new construction purchase and want help understanding the dates and documents involved, JSR Immigration and Legals can review your agreement and walk you through the next steps. Contact us at (647) 286-4266 or info@jsrlegals.ca.

This post is general information, not legal or tax advice, as of November 9, 2026. For advice on a specific transaction, please contact JSR Legals.

Sources

• Ontario, 2026 Ontario Economic Outlook and Fiscal Review: A Plan to Protect Ontario, Annex: https://budget.ontario.ca/2026/fallstatement/annex.html
• Canada Revenue Agency, GST/HST Notice 346, Ontario Enhanced New Housing Rebate: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/notice346/ontario-enhanced-new-housing-rebate.html
• Canada Revenue Agency, First-time home buyers' GST/HST rebate: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html

JSR Legals / JSR Immigration Ltd. 9300 Goreway Drive, Suite 205, Brampton, ON L6P 4N1 (647) 286-4266 info@jsrlegals.ca