The following provides a comprehensive update on the regulations of the Ontario Enhanced New Housing Rebate. The details below include previously circulated information, as well as new information regarding compliance requirements and the timing of payments for the five percent federal portion of the rebate.
As you are aware, Ontario’s temporary relief consists of two separate components:
- The Ontario Enhanced New Housing Rebate (ENHR) provides relief of up to $80,000 on the eight per cent provincial portion of the HST. The Canada Revenue Agency (CRA) assesses and administers this rebate.
- The Ontario New Home Affordability Payment (ONHAP) is a separate provincial payment of up to $50,000, equivalent to the five per cent federal portion of the HST. Ontario administers and pays this amount after the CRA assesses the underlying rebate application.
Together, these measures can provide up to $130,000 in relief on an eligible new home. The ONHAP does not change the federal GST payable. It is a separate Ontario payment designed to provide equivalent relief. The CRA’s main information page is available here: Ontario Enhanced New Housing Rebate.
Read more about previously shared information on the eligibility for homes purchased from a builder, builder payment or credit of rebates, and required forms.
Processing and Payment Timing
The CRA will begin processing applications once its system changes are implemented this fall. Applications received before the system is ready will be processed in the order they are submitted.
According to the CRA's public guidance, applicants can expect processing to take approximately 120 days. Audits or requests for additional information may extend processing by up to six months, depending on the complexity of the claim. The CRA will issue the rebates it administers. Ontario will issue the ONHAP separately after the CRA has assessed the application and shared the necessary information. Current implementation planning anticipates ONHAP payments beginning in early 2027.
More information is available here:What to expect after applying.
Applicants and builders should retain the completed applications, calculation worksheets, agreements, supporting documents, and proof of occupancy for six years.
Interaction with the First-Time Home Buyers’ GST/HST Rebate
An eligible first-time buyer must claim the federal First-Time Home Buyers’ GST/HST Rebate first. The ONHAP may then cover an otherwise eligible amount of the five per cent federal HST that was not recovered through the federal rebate. If a purchaser qualifies for both the Ontario ENHR and Ontario’s first-time home buyers’ rebate for the eight per cent provincial portion, the purchaser may claim either or both. However, the combined provincial rebates cannot exceed the lesser of $80,000 and the provincial HST actually payable.
Information on the federal rebate is available here: First-Time Home Buyers’ GST/HST Rebate.
For further information, please see the following documents:
Important Compliance Point
The purchaser remains responsible for ensuring that they qualify. If a rebate is credited, but the purchaser is not eligible, they can be required to repay it. A builder and purchaser may be jointly and severally liable where the builder knew or ought to have known that the purchaser was ineligible or that the amount credited exceeded the purchaser’s entitlement.
Please note, the above information is related only to the Ontario ENHR for owner-occupied homes. The province has also introduced a separate Enhanced New Residential Rental Property Rebate for rental housing. Rental projects are subject to separate eligibility and filing rules and should not use the GST190 and RC7190-ON forms solely based on the details outlined above.
Should you have any questions, please reach out to the following:
- CRA Business Enquiries: 1-800-959-5525
- GST/HST Rulings and technical questions: 1-800-959-8287
- ServiceOntario regarding the ONHAP: 1-800-267-8097
