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For informational purposes only. Not financial, legal, or professional advice. Consult a licensed mortgage professional before making decisions. See full disclaimer

FAQ Library
Financing•Verified 2026-05-13

How does the FTHB GST/HST Rebate stack with Ontario's enhanced HST rebate?

Ontario runs a separate temporary measure rebating the 8% provincial HST portion — up to $80,000 on new homes under $1M, for ALL buyers (not just first-time buyers). Stacked with the federal FTHB rebate, an Ontario first-time buyer on a $1M new build can recover up to roughly $130,000 in combined HST/GST relief. But Ontario's APS window is much narrower: April 1, 2026 to March 31, 2027.

Key Points

  • The Ontario Enhanced HST Rebate is NOT restricted to first-time buyers — any new-home buyer in Ontario can claim up to $80,000 back on the provincial portion during the eligibility window.

  • Stacked with the federal FTHB rebate, an Ontario first-time buyer on a $1M new build can recover the full 13% HST — approximately $130,000.

  • Ontario's APS eligibility window (April 1, 2026 – March 31, 2027) is much narrower than the federal window. An APS signed before April 1, 2026 only qualifies for the federal rebate.

  • Both rebates use the same $1M full / $1.5M phase-out price curve, but each has its own maximum dollar cap ($50K federal, $80K Ontario).

  • Ontario's construction deadlines are tighter than the federal program: build must start by Dec 31, 2028 and complete by Dec 31, 2031.

Need a Deeper Breakdown?

Read the full research guide this FAQ was derived from for more context and strategy.

Technical Research Verification

Our systems synchronized 2 data points and regulatory frameworks to verify this technical brief.

Read the deeper guide · Financing

2026 First-Time Home Buyer Rebates, Tax Credits & Incentives in Canada

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Ontario buyers can stack two distinct rebates — the federal FTHB GST/HST Rebate plus Ontario's enhanced provincial HST rebate — for combined relief of up to ~$130,000 on a $1M new build.

Two Separate Programs, Stacked

LayerProgramWho QualifiesMax AmountAPS Window
Federal (5% GST portion)FTHB GST/HST Rebate (Bill C-4)First-time buyers only$50,000Mar 20, 2025 – Dec 31, 2030
Provincial (8% Ontario HST portion)Ontario Enhanced HST RebateAll new-home buyers$80,000Apr 1, 2026 – Mar 31, 2027
CombinedBoth, stackedFirst-time buyers in the overlap window~$130,000Apr 1, 2026 – Mar 31, 2027

Worked Example: $1,000,000 Ontario New Build (FTHB, APS June 2026)

  • HST on $1M new build in Ontario: 13% = $130,000 ($50K federal GST + $80K Ontario portion)
  • Federal FTHB rebate: 100% of $50K = $50,000 back
  • Ontario Enhanced HST Rebate: 100% of $80K = $80,000 back
  • Net HST/GST cost: $0 — the buyer recovers the full $130,000

Worked Example: $1,200,000 Ontario New Build (FTHB, APS June 2026)

Federal and Ontario use DIFFERENT phase-out curves above $1M:

  • Federal phases out linearly between $1M and $1.5M — at $1.2M, federal rebate = $50K × (1.5M − 1.2M) / 500K = $30,000 (60% of max)
  • Ontario uses a FLAT cap of $80,000 across the entire $1M–$1.5M band — at $1.2M, Ontario rebate = $80,000 (full provincial cap)
  • Combined: $110,000 recovered against $156,000 of HST paid

This is the key Ontario-specific advantage between $1M and $1.5M: the federal rebate phases down, but the Ontario rebate stays flat at $80K. Above $1.5M, Ontario then phases down linearly from $80K to $24K by $1.85M, then holds at the $24K legacy floor.

Worked Example: $1,250,000 Ontario New Build (CRA's midpoint case)

  • Federal rebate = $50K × 50% = $25,000
  • Ontario rebate = $80,000 (flat cap still applies)
  • Combined: $105,000

Critical: The Windows Don't Match

The Ontario window is much narrower than the federal window. An APS signed in February 2026 qualifies for the federal rebate but NOT the Ontario rebate. To stack both, your agreement of purchase and sale must be dated between April 1, 2026 and March 31, 2027.

Ontario's Construction Deadlines

  • Construction must begin before December 31, 2028
  • Home must be substantially complete before December 31, 2031

How the Ontario Rebate Is Administered

The Ontario portion runs through amendments to Ontario's existing New Housing Rebate and New Residential Rental Property Rebate programs — administration depends on enactment of provincial legislation/regulations plus HST regulation amendments under the federal Excise Tax Act. Confirm with your builder that the enhanced provincial amount is being registered correctly at closing.

Your Next Steps

  1. Check your APS date — if signed before April 1, 2026, the Ontario rebate doesn't apply
  2. Get a written statement of adjustments showing both rebates broken out
  3. Speak with your real estate lawyer to confirm both layers will be credited at closing