Every so often a government program comes along that puts money back in a buyer’s pocket, and the new housing rebate is one of them. We’ve had a few clients ask us about it lately, usually some version of “is this real? And is it something that might really help me?”
These are fair questions, and the answer is, it depends. First, there is good news:
It’s true! Eligible home buyers can now recover up to $130,000 in HST on a newly built home. However, there are some nuances you must understand if a new home is in your sights.
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First: This Is About Brand-New Homes
Most homes that change hands around Peterborough are resale, meaning someone has already lived in them. Resale homes don’t have HST charged on the sale price, which is exactly why most buyers never think about this rebate.
New construction is different. When you buy a newly built home from a builder, HST applies, and on a home in the several-hundred-thousand-dollar range that tax adds up to a lot of money. The rebate exists to give a big chunk of it back.
So if you’re shopping for a century home downtown or a bungalow in an established neighbourhood, this rebate probably isn’t part of your picture. But if you’re looking at one of the newer developments going up around the city and the county, buying a pre-construction condo or townhouse, or building on your own lot, this is very much worth understanding.
Whether buying a resale home or a new build, there is a strong case for starting your search in or near Peterborough. Learn more in the posts below:
- Where Is the Best Place to Live in Ontario?
- Is Peterborough, Ontario Easy to Get To?
- Beyond Peterborough: Exploring the Surrounding Communities
Ontario’s Enhanced New Housing Rebate
As of late June 2026, the details are finalized and the program is officially in effect. Under the Ontario Enhanced New Housing Rebate, eligible buyers of a qualifying new home can get back the full 13% HST, up to a maximum of $130,000.
That figure is comprised of two pieces: up to $80,000 covering the 8% provincial portion, plus an Ontario “top-up” of up to $50,000 covering the 5% federal portion. Here’s roughly how it breaks down by price:
- Homes up to $1 million: the full combined rebate, up to $130,000.
- Homes between $1 million and $1.5 million: a flat $130,000.
- Homes between $1.5 million and $1.85 million: the rebate gradually phases down.
- Homes over $1.85 million: back to the older rules, with a maximum of $24,000.
In a market like ours, where plenty of new builds land comfortably under that $1 million line, most eligible buyers would be looking at the full benefit.
The two big conditions to know: the home has to be for use as your (or a close relative’s) primary residence, and your purchase agreement with the builder needs to be signed within the program window, which runs from April 1, 2026 to March 31, 2027. Unlike the first-time buyer program below, this one is open to all eligible buyers, not just first-timers.
Buying Your First Home? There’s a Federal Rebate Too
Layered underneath the Ontario rebate is a separate federal program called the First-Time Home Buyers’ GST Rebate. It removes the full 5% federal GST on a new home valued up to $1 million for eligible first-time buyers, worth up to $50,000, and it phases out between $1 million and $1.5 million.
The federal program has its own timeline. It applies to agreements signed on or after March 20, 2025, and runs to the end of 2030, so it has been quietly available for over a year already. For a first-time buyer, the two programs are designed to work together rather than cancel each other out, and your lawyer or accountant will make sure the pieces are claimed in the right order so you get the maximum.
Looking for more tips on buying a house in Peterborough or the Kawarthas? Start by reading the posts below:
- Should You Buy A Condo In Peterborough Now?
- Is a Freehold Better Than a Condo?
- Home Inspection Checklist for Buyers
How to Claim the New Home Rebate
In most new-build purchases, you don’t pay the full tax and wait months for a cheque. Instead, the builder credits the expected rebate right against your purchase price at closing, so you pay the HST minus the rebate. You assign the rebate to the builder, sign a couple of standard forms (Form GST190 and the Ontario schedule RC7190-ON), and your lawyer confirms the right amount shows up on your statement of adjustments.
If a builder doesn’t credit it up front, you can still apply to the CRA yourself after closing, but you have to file within two years. That deadline matters, and it’s one of the easiest ways to accidentally leave money on the table.
How This Applies to a Peterborough Home Buyer
Put the pieces together and a newly built home suddenly looks a good deal more affordable than the sticker price suggests. New construction has often carried a price premium over comparable resale homes. A rebate this big narrows down that gap, and in some cases can flip the math entirely, making a brand-new home with a warranty, new everything, and no immediate repairs a genuine contender against an older place that might need work.
On top of that, this rebate doesn’t replace the other supports we always walk first-time clients through. It stacks with them. The Ontario land transfer tax rebate and the First Home Savings Account are separate programs, and you can use them alongside the HST rebate. Together they can really lower what you need to bring to the table on closing day.
Can a Simple Mistake Cost You the Rebate?
A rebate this big always comes with fine print, and a few avoidable slip-ups can shrink it or wipe it out entirely. The ones we’d flag:
- Renting it out instead of living in it. This rebate is built for owner-occupants. If you plan to lease the place from day one, you fall under different rules (there’s a separate rental-property rebate for that).
- Co-buyers with different plans. Everyone on title generally needs to intend to use the home as a primary residence. One non-occupying co-buyer, or a spouse who has owned before, can affect eligibility, especially for the first-time piece.
- Assignment sales before closing. Selling your purchase agreement to someone else before the home is finished can change how the HST and rebate apply, sometimes a lot.
- Not watching the dates. Both programs hinge on when your agreement is signed and when construction starts and finishes. Being a few weeks off on either side can change what you qualify for.
- Missing the filing window. If the builder doesn’t credit the rebate at closing, you have two years to claim it yourself. Don’t let that slip.
We know that’s a lot of moving parts, and that’s the whole reason for this post. A rebate this large is fantastic news, but only if you qualify and set the purchase up the right way. A lawyer or accountant can help you lock in the details.
Thinking about a new build in Peterborough or the Kawarthas and wondering whether the new housing rebate could work for you? Our Peterborough real estate agents can help! Reach out to team@jeffandkatie.ca or call 705-243-9797 and we can figure out what’s possible.
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