Buying a New Home in Carleton Place, Kanata or Stittsville with the New HST Rebate

Posted by Lynn Vardy on September 10, 2026

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If you are looking at a new build in Carleton Place, Kanata, Stittsville or Lanark County right now, there is a good chance you have heard about the new HST rebate on new homes.

You may also have heard numbers like $50,000, $80,000 or even $130,000.

All of those numbers can be relevant, but they do not mean every buyer receives a $130,000 cheque after closing.

There are now several different rebates and programs working together. Some are only for first-time buyers. Others can apply to people who already own a home. The dates of your builder agreement also matter.

And just as importantly, your builder may already have included the expected rebate in the price you are being shown.

Here is how I would explain it to a buyer before we start comparing new homes in Carleton Place, Lanark County, Stittsville or Kanata.

What is the HST rebate on new homes?

Ontario HST is 13%. It consists of a 5% federal portion and an 8% Ontario portion.

Newly constructed and substantially renovated homes are generally subject to HST. However, there are housing rebates that can reduce how much of that tax an eligible buyer ultimately pays.

The confusing part in 2026 is that there is no longer just one rebate to think about.

Depending on the buyer and the date of the transaction, the available relief may include:

the existing GST/HST New Housing Rebate
the federal First-Time Home Buyers’ GST/HST Rebate
the Ontario First-Time Home Buyers’ Rebate
the temporary Ontario Enhanced New Housing Rebate
the Ontario New Home Affordability Payment

The CRA’s current overview of the housing rebate system is available through its GST/HST New Housing Rebate guidance.

What changed with the federal rebate?

The federal government introduced a much larger rebate for eligible first-time home buyers purchasing or building a new home.

The federal First-Time Home Buyers’ GST/HST Rebate can provide:

up to 100% of the 5% federal portion of HST, to a maximum of $50,000, on an eligible home valued at $1 million or less
a reduced rebate on homes valued between $1 million and $1.5 million
no federal first-time-buyer rebate at $1.5 million or more

For example, the CRA uses a $1.25 million home to show the phase-out. At that midpoint between $1 million and $1.5 million, the maximum federal rebate falls to $25,000.

For a home purchased from a builder, the agreement generally must have been entered into on or after March 20, 2025 and before 2031. Construction must begin before 2031, be substantially completed before 2036, and ownership must transfer before 2036.

What changed in Ontario?

This is the part that deserves extra attention.

Ontario has introduced a temporary Enhanced New Housing Rebate, or ENHR.

Unlike the first-time-buyer rebate, this temporary enhanced rebate is not restricted to first-time home buyers.

For an eligible home purchased from a builder, the Agreement of Purchase and Sale generally has to be entered into on or after April 1, 2026 and on or before March 31, 2027.

The enhanced Ontario rebate, together with the existing Ontario New Housing Rebate, can provide:

the full 8% provincial HST portion on homes valued up to $1 million, to a maximum of $80,000
a flat maximum rebate of $80,000 for eligible homes above $1 million and up to $1.5 million
a reduced enhanced rebate between $1.5 million and $1.85 million
no enhanced rebate at $1.85 million or more, although the existing Ontario New Housing Rebate of up to $24,000 may still be available where its requirements are met

The current details are set out in the CRA’s Ontario Enhanced New Housing Rebate guidance and its August 2026 Notice 346.

There are additional timing requirements. For a typical home purchased from a builder under the temporary enhancement, construction must begin by December 31, 2028 and be substantially completed by December 31, 2031. HST must generally become payable and possession must occur by December 31, 2032.

What is the Ontario New Home Affordability Payment?

Ontario also introduced the Ontario New Home Affordability Payment, commonly called ONHAP.

An individual who qualifies for the Ontario Enhanced New Housing Rebate may also qualify for ONHAP.

ONHAP provides up to $50,000, representing up to the 5% federal portion of HST. It is reduced by federal housing rebates the buyer is already entitled to receive.

That means the programs are designed to avoid paying the same portion of HST twice.

Taken together, the temporary Ontario ENHR and ONHAP can provide eligible buyers with relief equivalent to the full 13% HST on qualifying homes up to $1 million, with combined maximum relief of up to $130,000 maintained on qualifying homes up to $1.5 million. Ontario describes this as expanded HST relief available to eligible buyers, including first-time buyers.

Do you have to be a first-time buyer?

Not for every program.

This is probably the most important part of the 2026 changes.

The federal First-Time Home Buyers’ GST/HST Rebate and the Ontario First-Time Home Buyers’ Rebate require an eligible first-time buyer.

But Ontario’s temporary Enhanced New Housing Rebate does not have that same first-time-buyer restriction. The temporary enhancement is broadly available to eligible individuals who meet the housing, timing and principal-residence requirements.

So, for example, someone selling a longtime home in Beckwith and buying a newly built bungalow or townhouse in Carleton Place should not assume they are excluded simply because they already own a home.

The exact agreement date and the rest of the qualification rules still need to be checked.

If you currently own a home and are trying to decide when to buy the new one relative to your sale, my guide to buying your next Carleton Place home before selling your current home may also help you think through the timing.

Who qualifies as a first-time buyer?

For the federal first-time-buyer rebate, the CRA generally requires that you:

are at least 18
are a Canadian citizen or permanent resident
have not lived in a home that you or your spouse or common-law partner owned as your primary residence during the relevant calendar year or the previous four calendar years

For a home purchased from a builder, you must meet the first-time-buyer test when ownership transfers to you.

That spouse or common-law partner rule matters. Simply putting the home in one person’s name does not necessarily turn that person into a first-time buyer for rebate purposes.

What if parents or other family members are helping with the purchase?

This deserves careful review before anyone is added to an Agreement of Purchase and Sale or title.

The CRA does permit multiple individuals to purchase a qualifying home.

For the federal first-time-buyer rebate, at least one purchaser must qualify as a first-time home buyer, that individual must be acquiring the home for use as their primary place of residence, and the first-time buyer must be the rebate claimant.

That means having a parent or another family member involved does not automatically answer the rebate question one way or the other.

The exact ownership structure matters.

If parents are going on title to help with financing, or several family members are purchasing together, I would have the rebate structure confirmed with the buyer’s lawyer and, where necessary, a tax professional before the agreement becomes firm.

This is particularly important with multi-generational purchases.

A simple example

Example only: Assume an eligible buyer purchases a qualifying new Ontario home valued at $800,000 before HST during the temporary Ontario enhancement period.

At a 13% HST rate, the HST would be $104,000.

Eight per cent represents $64,000 of Ontario HST.

Five per cent represents $40,000 of federal HST.

For a buyer who meets the requirements of the Ontario temporary enhanced programs, the enhanced Ontario rebate could cover the $64,000 provincial portion and ONHAP could potentially cover the remaining $40,000 federal portion, subject to any federal rebate entitlement and all other program conditions.

That is how the combined relief can effectively remove the 13% HST on an eligible home under $1 million.

But that does not mean the buyer necessarily pays $904,000 and later receives a $104,000 cheque.

Which brings us to the part buyers need to understand before comparing builder prices.

Why the builder’s advertised price can be confusing

This is where I see buyers get tripped up.

The price you see advertised by a builder may not be the final amount you will pay. Depending on the builder and the home you choose, your total cost could include:

the base price of the home
a lot premium
upgrades and design selections
HST
closing adjustments or development-related charges

At the same time, the price may already reflect HST rebates or credits that the builder expects you to qualify for and assign to them.

For example, a home advertised at $700,000 does not necessarily mean you start with $700,000 and then receive an HST rebate on top of that. The builder may already have factored an expected rebate into that advertised price.

Different builders present their pricing differently, so I would never compare a $700,000 new build with a $700,000 resale home based only on the advertised price.

Instead, ask the builder to show you:

Advertised purchase price + lot premium, if any + upgrades + other applicable closing costs and adjustments = your expected total purchase cost

Then confirm separately which HST rebates have already been included or credited in that price.

That gives you a much clearer number to use when comparing one builder with another, or when comparing a new build with a resale home.

Will I get an HST rebate cheque after closing?

Maybe, but do not assume you will.

The CRA allows builders to pay or credit certain housing rebates to eligible purchasers.

For the federal first-time-buyer rebate, a builder can credit the rebate against the amount payable for the home. If the builder does not credit it, the buyer may instead apply directly to the CRA when eligible.

The Ontario Enhanced New Housing Rebate and ONHAP can also be paid or credited through the builder.

So, if your builder has already reduced the amount you need to pay because you assigned or credited the rebate to the builder, you normally should not expect the same rebate to arrive as extra money afterward.

Before you sign, ask:

Is HST included in the advertised price?
Which rebates are assumed in this price?
Am I assigning those rebates to the builder?
What happens to the price if I do not qualify?
Are upgrades and lot premiums included in the rebate calculation shown to me?
What additional adjustments or charges could appear at closing?
What is the total amount I am actually expected to finance or bring to closing?

Those answers matter much more than the number on a builder’s sign.

What happens if the builder gives me the rebate but I do not qualify?

This is another reason not to treat rebate eligibility casually.

The CRA specifically says the buyer is responsible for ensuring they are eligible for the Ontario Enhanced New Housing Rebate.

If a builder credits a rebate to you and you ultimately do not qualify, the amount can have to be repaid. In certain circumstances, the builder and purchaser can be jointly liable.

Your builder agreement may also contain provisions dealing with what happens if CRA denies a rebate that was assumed in your purchase price.

Have your lawyer review those clauses.

What does this mean for buyers in our area?

The rebates change the way I think buyers should compare new construction with resale.

Suppose you are comparing:

a new townhouse with a builder
a newer resale townhouse
a semi-detached home
an older detached property

The builder’s headline price is only one number.

You also want to compare the finished cost after the lot, upgrades, appliances if they are not included, landscaping, window coverings, closing adjustments and any rebate assumptions.

The same applies when comparing Carleton Place with Stittsville or Kanata.

A new home in one community may have a lower base price but higher upgrades or premiums. Another may include more in the standard package.

And resale may still offer strong value when you consider what is already finished.

If location is part of your decision, my guide to the best places to live west of Ottawa in 2026 compares Carleton Place, Stittsville, Almonte, Perth and other nearby communities.

You can also read my comparison of Carleton Place versus Ottawa and my guide to Carleton Place neighbourhoods and walkability.

The rebate can change the numbers, but it should not be the only reason you choose a house or community.

What should you confirm before signing with a builder?

Before you commit to a new build, make sure you understand:

the exact price in the Agreement of Purchase and Sale
whether HST is included
which HST rebates have already been credited
whether you personally qualify
what happens if CRA later denies the rebate
the cost of upgrades
the lot premium
development charges or other adjustments you may be responsible for
deposit requirements
expected closing or occupancy dates
whether your financing has been reviewed using the actual final purchase cost, not simply the advertised price

I also recommend contacting your REALTOR® before registering at a builder’s sales centre. Builder policies for REALTOR® registration can vary, and some require your agent to be identified at the beginning of the process.

Frequently Asked Questions

What is the HST rebate on new homes in Ontario?

It is a group of federal and provincial programs that can return or credit part or, in some cases, all of the HST on an eligible newly constructed or substantially renovated home. The program that applies depends on the buyer, price, agreement date and intended use of the property.

How much is the HST rebate on a new home?

For eligible transactions during Ontario’s temporary enhancement period, combined provincial relief and ONHAP can provide up to $130,000. First-time buyers may also qualify through the federal and Ontario first-time-buyer programs. Your actual entitlement depends on the transaction.

Do first-time buyers pay HST on a new home in Ontario?

HST still applies to the transaction, but eligible first-time buyers may qualify for rebates that offset up to the full 13% on qualifying homes valued at $1 million or less.

Can an existing homeowner get the new Ontario HST rebate?

Yes. The temporary Ontario Enhanced New Housing Rebate is not limited to first-time buyers. An existing homeowner may qualify if the transaction meets the program’s timing, price, principal-residence and other requirements.

Does the builder deduct the HST rebate from the purchase price?

Sometimes. Builders can pay or credit eligible rebates to buyers. You need to check the specific pricing and rebate provisions in your Agreement of Purchase and Sale.

Do I get the HST rebate back after closing?

Not necessarily. If your builder has already credited the rebate against the amount payable, you should not expect to receive the same rebate again afterward.

What if I don’t qualify?

You could become responsible for a rebate that was credited to you but that you were not entitled to receive. Your builder contract may also address this situation. Get legal advice before signing if eligibility is uncertain.

Does the rebate apply to new homes in Carleton Place?

Yes. Carleton Place is in Ontario, so an eligible new home there can qualify under the same Ontario and federal rules, provided the buyer and transaction meet the program requirements.

Looking at a new build in Carleton Place?

The current hst rebate on new homes can make a meaningful difference when comparing new construction with resale, but the rebate should be looked at as part of the full purchase cost.

If you are considering a new build in Carleton Place, Lanark County, Beckwith, Almonte, Stittsville or Kanata, I can help you compare the builder price, incentives, upgrades and available resale homes so you understand the bigger picture before signing.

Ideally, contact me before you register with a builder sales centre so we can check the builder’s REALTOR® registration policy and start the comparison from the beginning.

I can help with the real estate side of the decision. For confirmation of your personal HST eligibility, rebate entitlement or contract obligations, your lawyer and, where appropriate, your accountant or tax adviser should review your circumstances.

About the author

Lynn Vardy, REALTOR®

I have 19+ years in real estate and work with RE/MAX Boardwalk Realty. I help families in Carleton Place, Lanark County, Kanata and Stittsville buy and sell through big life changes, like downsizing, divorce and estate sales. I have been through some of these moves with my own family, so I know it is about much more than the house.

Read my story | Talk to Lynn | 613-686-2064

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