Ontario Enhanced New Housing Rebate (ENHR): What You Need to Know
Ontario's Enhanced New Housing Rebate (ENHR) dramatically increases HST relief for new home buyers — here's what it covers and who qualifies.
What Is the ENHR?
The Ontario Enhanced New Housing Rebate (ENHR) is a temporary top-up to Ontario's existing New Housing Rebate (NHR), introduced in the 2026 Ontario Budget as part of a broader HST relief package. While the existing NHR has long provided partial relief on the 8% provincial portion of the HST, the ENHR significantly expands that relief — in many cases offering a full 100% rebate of the provincial HST paid on a new home purchase.
The rebate applies specifically to the 8% Ontario component of the Harmonized Sales Tax (HST) and is designed to make new housing more accessible for Ontario buyers during a defined eligibility window.
The Numbers at a Glance
| Home Purchase Price | Maximum Provincial Rebate |
|---|---|
| Up to $1,000,000 | Up to $80,000 (full 100% rebate of provincial 8% HST) |
| $1,000,001 – $1,500,000 | $80,000 (maximum capped) |
| $1,500,001 – $1,849,999 | $80,000 decreasing linearly to $24,000 |
| $1,850,000 and above | $24,000 (standard Ontario NHR) |
For context, the previous maximum Ontario NHR was $24,000 — representing 75% of the provincial HST on the first $400,000 of a home's purchase price. The ENHR represents a dramatic increase in available relief for most buyers.
Who Qualifies?
The ENHR is available for a range of residential property types, provided the home will be used as the primary place of residence by the purchaser or a qualifying relation. Eligible home types include:
- Detached and semi-detached homes
- Duplexes
- Residential condominium units
- Townhouses and rowhouses
- Cooperative housing units
- Mobile homes, including modular homes
- Floating homes
There are three main eligibility scenarios:
Purchasing from a Builder
Buyers who enter into an agreement of purchase and sale with a builder for a new or substantially renovated home are eligible, provided the home will be their (or a qualifying relation's) primary place of residence.
Owner-Built Homes
Individuals who build or substantially renovate a home on land they own or lease — and who intend to use it as their primary residence — are also eligible for the ENHR.
Cooperative Housing
Individuals purchasing shares of a cooperative housing corporation that entitle them to occupy a unit as their primary residence may also qualify.
Key Dates and Eligibility Window
The ENHR is a time-limited program. The specific eligibility windows are as follows:
Builder Purchases
- Agreement of purchase and sale signed: April 1, 2026 – March 31, 2027
- Construction begins on or before: December 31, 2028
- Substantially completed by: December 31, 2031
Owner-Built Homes
- Construction or substantial renovation begins: April 1, 2026 – March 31, 2027
- Substantially completed by: December 31, 2029
Assignment Sales
For assignment sales, both the original agreement of purchase and sale and the assignment agreement must be signed between April 1, 2026 and March 31, 2027. In all cases, the HST must become payable no later than December 31, 2032.
The Ontario New Home Affordability Payment (ONHAP)
Buyers who qualify for the ENHR may also be eligible for the Ontario New Home Affordability Payment (ONHAP), a complementary program that provides additional relief equivalent to up to the full 5% federal portion of the HST. For homes priced up to $1 million, this can mean up to $50,000 in additional savings.
Combined, the ENHR and ONHAP could deliver total savings of up to $130,000 on a qualifying new home purchase. Importantly, no separate provincial application is required for the ONHAP — it flows automatically from the ENHR application process.
First-Time Home Buyers
First-time home buyers who are eligible for Ontario's existing first-time home buyers' rebate can claim both that rebate and the ENHR. However, the total Ontario rebates for the 8% provincial portion of HST are capped at the lesser of $80,000 or the actual provincial HST payable on the purchase. Buyers should not expect to "stack" rebates beyond this ceiling.
How to Claim
The process for claiming the ENHR depends on your situation:
- HST became payable after June 12, 2026 (builder purchases): Builders can pay or credit the ENHR directly to the buyer at closing, simplifying the process considerably.
- HST became payable before June 12, 2026: The buyer must pay the full HST at closing and then apply directly to the Canada Revenue Agency (CRA) to receive the rebate.
- Application forms are available through CRA's new housing rebate page.
- The ONHAP does not require a separate provincial application — it is processed as part of the ENHR claim.
Speak with Trillium CPA
The ENHR represents one of the most significant expansions of HST relief for Ontario homebuyers in recent memory. But the eligibility rules, date windows, and interaction with other rebates can be complex — and the stakes are high when up to $130,000 in savings may be on the table.
At Trillium CPA, we help homebuyers, builders, and real estate advisors navigate HST rebate programs with confidence. If you're purchasing a new home or planning a build in Ontario, reach out to our team to ensure you're claiming every dollar you're entitled to.