What is the Ontario ENHR
The Ontario ENHR is a temporary rebate that, together with the Ontario new housing rebate, provides individuals combined relief of up to $80,000 of the 8% provincial part of the HST paid on the purchase or construction of a new or substantially renovated home valued up to $1,850,000. This rebate is generally available for the purchase of a home from a builder between April 1, 2026, to March 31, 2027, and for owner-built homes where construction begins during the same period.
The Ontario ENHR generally applies to the following situations:
- The purchase of a new or substantially renovated home from a builder where the agreement of purchase and sale is entered into with the builder between April 1, 2026, and March 31, 2027
- The purchase of a share of capital stock of a cooperative housing corporation (co-op) where the agreement for the purchase and sale of the share is entered into with the co-op between April 1, 2026, and March 31, 2027
- Owner-built homes where the construction or substantial renovation of the home begins between April 1, 2026, and March 31, 2027
How much the rebate is
The Ontario ENHR, combined with the Ontario new housing rebate, provides:
| New home value | Rebate amount |
|---|---|
| Up to $1 million | Full rebate (100% of the 8% provincial part of the HST paid, up to $80,000) |
| Above $1 million, up to $1.5 million | Flat rebate of $80,000 |
| Above $1.5 million and below $1.85 million | Partial rebate of the provincial part of HST paid |
| $1.85 million and above | Only the Ontario new housing rebate of up to $24,000 is available |
Ontario new home affordability payment (ONHAP)
An individual who is eligible for the Ontario ENHR may also be eligible for the Ontario new home affordability payment (ONHAP), administered by the Province of Ontario. The ONHAP provides an amount up to $50,000 equivalent to up to 100% of the 5% federal part of the HST on a new or substantially renovated home.
The ONHAP is reduced by any GST/HST new housing rebate or first-time home buyers’ GST/HST rebate that the individual may be entitled to.
A separate rebate application is not required to claim the ONHAP. Fill out the “Consent to share information” section in your new housing rebate application form to allow the CRA to provide the Province of Ontario with the relevant information (such as contact, banking and rebate information) to administer this payment.
Interaction with the first-time home buyers’ (FTHB) rebates
If you are eligible for the FTHB GST/HST rebate for the 5% federal part of the HST, you must claim this rebate first to determine your eligibility for the ONHAP. If there is any amount related to the 5% federal part of the HST that could not be rebated through the FTHB GST/HST rebate, you may be able to recover that amount through the ONHAP.
If you are eligible for both the Ontario ENHR and the Ontario FTHB rebate for the 8% provincial part of the HST, you can choose to claim either or both of these rebates. The total amount of all rebates for the 8% provincial part of the HST cannot exceed the lesser of $80,000 and the provincial part of the HST payable for the purchase or construction of the home.
This means that the rebate cannot exceed the tax paid or payable, including any amount paid or credited by the builder.