For many Canadians, 2026 has brought another year of uncertainty when it comes to housing.

With affordability still a major concern and the cost of buying a home remaining out of reach for many, buyers are looking for any opportunity that could make home ownership a little more attainable, and one change getting a lot of attention is Ontario’s new HST rebate. 

New-home sales picked up in the second quarter this year after the program took effect (the sale of 4,765 of these new homes can be attributed to the expanded HST rebate program). And if you’re an agent, chances are you’ve already had multiple clients asking about the headlines promising up to $130,000 in savings. 

Naturally, the next question is: “So, how much can I actually save?” But this is where things get a little more complicated for people.

While the rebate could mean big savings for some buyers, there are a few important rules around who qualifies, which homes are eligible and how much they can actually save. 

Here’s what agents should know to help make sense of the rebate, answer the questions clients are likely to have and make sure expectations are realistic before they get too far into the home-buying process.

First, there are two different rebates

This is where things can get a little confusing since there are actually two different rebate programs to know about – and with $130,000 in HST relief potentially on the table for eligible buyers, it’s worth understanding how they differ.

The first is the Ontario Enhanced New Housing Rebate (ENHR), which is for buyers who purchase a home between April 1, 2026 and March 31, 2027, and plan to live in it as their main home.

The second is the first-time buyer GST/HST rebate, which is part of a separate federal program. It applies retroactively to purchases made since March 2025 and runs until 2031, with its own rules around who qualifies. 

Although it’s not expected that you remember every detail of both programs, it is helpful to understand the difference and know that a client may need to look into it when applying to see if they qualify for both.

The $130,000 number comes with some fine print

Yes, the buyers can save up to $130,000. But that doesn’t mean every eligible buyer gets the full $130,000 discount.

The maximum rebate comes from combining the provincial and federal programs, and is only available to first-time home buyers purchasing a home at $1 million or less.

Once the price goes above that, the rebate starts to change. It holds for a period and then gradually decreases as the home price rises, eventually returning to a much smaller, longstanding provincial rebate for higher-priced homes.

For agents, the main thing to keep in mind is that the rebate depends on the price of the home.

So, even if two buyers both qualify, the amount they would each get back could look quite different depending on what they’re actually buying.

It’s for new homes, not resale

The enhanced rebate applies to new homes only, including homes that are newly built or substantially renovated and purchased directly from a builder. A resale home, however, does not qualify. The home also needs to be the buyer's main residence, or the main residence of a qualifying family member, so, a property purchased purely as an investment wouldn’t be eligible. 

Other eligibility rules still apply under the existing rebate program. So, if a client sees a newer home on the market and assumes they’ll qualify, it’s worth taking a closer look before they start counting on the savings. The same goes for the $130,000 figure – the purchase price matters, and not every buyer will qualify for the maximum rebate. 

How does the rebate actually get paid?

In most cases, buyers won't have to pay the full HST at closing and then wait to get the money back later. Instead, they can have the rebate applied through the builder, which lowers the amount they need to pay at closing. So, rather than getting a cheque months later, the savings are taken off the purchase price upfront. 

The buyer completes the required GST/HST New Housing Rebate Application, Form GST190, along with the Ontario schedule, RC7190-ON.

Buyer can also pay the full HST at closing and apply for the rebate from the CRA afterward, but in most cases, it’s simpler to have the rebate applied through the builder.

For agents, the main consideration is making sure buyers understand how the rebate fits into their overall budget. It’s worth encouraging clients to confirm whether the rebate will be applied at closing and to avoid treating the full potential rebate as available cash until they’ve confirmed what they actually qualify for. This can really help buyers plan more realistically for their down payment, closing costs and other upfront expenses. 

What should agents actually be telling clients?

What clients really need from their agent is someone who can explain the basics, flag what they should be paying attention to and know when it’s time to bring in the right professional. 

That means setting expectations early, both around whether the home qualifies and what the rebate could look like, but also what the buyer can realistically afford.

The rebate can help with upfront costs, but it shouldn’t be a reason to exceed the budget. Agents can help clients look at the bigger picture, including their down payment, closing costs and monthly payments, and encourage them to confirm the details with their lawyer, builder or tax professional before counting on a specific rebate amount.

With 34 per cent of deals in Canada collapsing due to financing failure, it’s critical to have this alignment as early as possible. 

Don’t forget the deadline

The Ontario enhanced program is currently set to run until March 31, 2027. So, for buyers considering a new home, it’s important to keep in mind that the rebate is only available for a limited time and isn't a permanent change. 

That may become an important part of conversations with clients who are already considering a new build, but it's another reason to make sure they understand the rules before making decisions based on the rebate alone. 

The bottom line

Ontario’s new HST rebate could be a really helpful savings opportunity for some buyers, but there's a bit more to it than the “save up to $130,000” headline.

For agents, you don’t need to have every tax rule memorized; you just want to know enough about the basics to have a realistic conversation with your clients who might qualify. This way, you’ll be able to understand what types of homes are eligible and, most importantly, who can actually apply.