Here's What You Need to Know About the GST/HST Rebate
If you've been sitting on the fence about buying a new home, this might be the nudge you've been waiting for. The federal government and Ontario have just announced one of the most significant tax relief programs the province has seen in decades , and if you're buying a newly built home, you could save up to $130,000.
Here's everything you need to know: what the program is, who qualifies, how to apply, and why communities like Rosabella are particularly well-positioned for buyers looking to take advantage of it right now.
What Is the First-Time Home Buyers' GST/HST Rebate?
When you buy a newly built home in Canada, you pay GST (or the federal portion of HST) on the purchase price. For a lot of buyers , especially first-timers , that tax bill is a significant and often overlooked cost on top of the down payment, closing costs, and everything else.
The First-Time Home Buyers' GST/HST Rebate was introduced by the federal government to help offset this. Eligible first-time buyers can receive a full or partial rebate of the GST (or the federal portion of HST) on a newly constructed or substantially renovated home , up to a maximum of $50,000 on the federal portion alone.
The program was opened for applications by the Canada Revenue Agency (CRA) in March 2026, and applies to homes where purchase agreements were signed on or after March 20, 2025.
The Big News: Ontario Just Made It Even Better
On March 30, 2026, Prime Minister Mark Carney and Ontario Premier Doug Ford announced a landmark federal-provincial partnership that dramatically expands the scope of HST relief for new home buyers in Ontario.
Here's what changed:
From April 1, 2026 to March 31, 2027, the full 13% HST , both the federal 5% and Ontario's 8% , will be removed for eligible buyers of new homes in Ontario. This is no longer limited to first-time buyers. The expanded program covers:
First-time buyers
Repeat buyers purchasing a primary residence
Investors purchasing residential rental properties (with specific construction timelines)
The federal government covers its 5% portion through the existing First-Time Home Buyers' GST/HST Rebate framework (now extended to all buyers), while Ontario covers its 8% provincial portion through an enhanced provincial HST rebate.
The combined savings are substantial:
This is a temporary measure designed to get more shovels in the ground and more families into homes. As the CEO of the Ontario Home Builders' Association put it, "This is the biggest announcement we've seen in home building in decades."
Who Qualifies?
For the Federal First-Time Home Buyers' GST/HST Rebate (up to $50,000 on federal portion):
To qualify for the federal rebate, you must:
Be a first-time home buyer (you and any co-purchasers have not owned a home that you lived in as your principal place of residence in the preceding four years)
Be purchasing or building a new or substantially renovated home intended as your primary residence
Have signed a purchase agreement on or after March 20, 2025
Be a Canadian resident
For the Expanded Ontario HST Relief (April 1, 2026 – March 31, 2027):
The expanded provincial program opens things up considerably. You qualify if:
Your purchase agreement is signed with a builder between April 1, 2026 and March 31, 2027
The home will be used as a primary residence , this now includes repeat buyers, not just first-timers
For primary residences: construction must begin on or before December 31, 2028, and be substantially complete by December 31, 2031
For rental properties: construction must have begun before March 31, 2026, with substantial completion by December 31, 2029
If you're a first-time buyer signing between April 1, 2026 and March 31, 2027, you'll benefit from both programs stacked together , giving you relief on the full 13% HST.
How to Apply
If You're Buying from a Builder (like InDesign Homes)
This is the most common scenario for new home buyers, and it's also the most straightforward. Here's how it works:
Option 1 , Your builder credits the rebate at closing. Builders can apply the GST/HST rebate directly against the purchase price at closing, meaning you never have to pay the full tax amount upfront. The rebate is simply deducted from what you owe at the time of purchase.
Option 2 , If the builder doesn't credit it, apply directly to the CRA. In some cases, the builder may not apply the rebate at closing. If that happens, you can apply directly:
Online: Log in to your CRA My Account and submit your application there
By mail: Complete Form GST190 (GST/HST New Housing Rebate Application for Houses Purchased from a Builder) and mail it to the CRA
Apply within the time limit. You generally have two years from the date you take ownership to apply for the rebate, so don't leave it too long.
If You Built Your Own Home
If construction started on or after March 20, 2025, you can apply directly to the CRA using your CRA account or by submitting Form GST191 (GST/HST New Housing Rebate Application for Owner-Built Houses).
Why This Window Matters
The expanded 13% HST relief is only available for purchase agreements signed between April 1, 2026 and March 31, 2027. That's a one-year window , and with the kind of savings on the table, buyer demand is expected to rise quickly.
If you've been waiting for the right time to buy, there's a compelling argument that this is it. The combination of the federal rebate and the Ontario expansion means a buyer purchasing a $900,000 new home today could save the full $117,000 in HST , money that would otherwise be gone the moment you sign.
How This Applies to InDesign Communities
At InDesign Homes, one of our communities is particularly relevant for buyers looking to act during this window.
Rosabella
Rosabella is a thoughtfully designed community of new homes built for the way people actually live , with layouts that make sense, finishes that don't feel like compromises, and a location that connects you to everything you need. For buyers qualifying for the HST rebate, a new home at Rosabella means those savings can go directly toward building equity rather than taxes.
Frequently Asked Questions
Can I get the rebate if I've bought a home before? For the federal first-time buyer rebate, no , you need to be a first-time buyer. However, under the new Ontario expanded program running from April 1, 2026 to March 31, 2027, repeat buyers purchasing a primary residence are also eligible for the provincial portion.
Does the rebate apply to homes over $1 million? Yes, under the expanded program. Homes valued up to $1.5 million still receive the maximum $130,000 combined rebate. Homes between $1.5M and $1.85M receive a proportionally reduced rebate, and homes above $1.85M still qualify for a minimum of approximately $24,000.
Do I need to do anything before closing? Talk to your builder. Make sure you confirm this in your purchase agreement process whether the rebate is applied directly on closing or if you will need to apply through CRA.
What if I don't have a CRA account? You'll want to set one up , it's the fastest way to apply if needed. The CRA also recently launched a self-service option to help Canadians regain access to locked accounts without calling in.
Is this guaranteed? The Ontario expanded rebate is subject to the passage of provincial and federal legislation. However, both levels of government have committed to it, and the federal government has agreed to cover its portion until legislation formally passes.
The Bottom Line
The combination of the federal First-Time Home Buyers' GST/HST Rebate and Ontario's new expanded HST relief program represents a genuinely rare alignment of federal and provincial policy , and a real, tangible opportunity for new home buyers to save tens of thousands of dollars.
The window is one year. The savings are real. And communities like Rosabella, where new homes are either underway or ready to move into , are exactly the kind of opportunities this program was designed to make more accessible.
If you have questions about how the rebate applies to a specific InDesign home, reach out to our team. We're here to help you understand what you qualify for , and make sure you don't leave money on the table.
For full eligibility details and to apply, visit the CRA's First-Time Home Buyers' GST/HST Rebate page. This blog is for informational purposes only and does not constitute tax or legal advice. Please consult a qualified professional for guidance specific to your situation.
