CRA has published an expanded Notice on the Ontario enhanced new housing rebate

CRA has published an expanded Notice, dated August 2026 (replacing the June 2026 version), discussing the Ontario enhanced new housing rebate (ENHR) which, together with the Ontario new housing rebate, provides eligible individuals with 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, where the home is for use as the individual's or their relation's primary place of residence. This rebate is generally available for the purchase of a home from a builder where the agreement of purchase and sale was entered into on or after April 1, 2026, and on or before March 31, 2027. For owner-built homes, the rebate is generally available where construction begins on or after April 1, 2026, and on or before March 31, 2027.

In addition to a description of the general conditions for granting the ENHR rebate, the notice discusses the anti-avoidance rules, which may deem an agreement entered into after March 2026 to have been entered into before April 2026.

The Notice explains that the rebate for up to $50,000 of the GST component of the purchase price is provided through the Ontario new home affordability payment (ONHAP) system. Both the Ontario ENHR and the ONHAP can be paid or credited to the purchaser by the builder (similar to other GST/HST new housing rebates). Although the builder then claims the ENHR rebate on its GST/HST return for the reporting period in which the amount was paid or credited, the ONHAP is not included on the builder's GST/HST return because it is paid separately by the Province of Ontario (which administers it rather than CRA)

The CRA webpage entitled “Ontario enhanced new housing rebate (ENHR)” has also been modified effective July 30, 2026.

Neal Armstrong. Summary of GST/HST Notice No. 346 Ontario Enhanced New Housing Rebate August 2026 under New Harmonized Value-Added Tax System Regulations, No. 2, under s. 41(2.01).