Last Updated Date: August 27, 2026

Comprehensive Guide to the Ontario Enhanced New Housing Rebate
(CRA Notice 346)

Authoritative Analysis of Eligibility, Calculation Tier Matrices, ONHAP Integration, and CRA Application Procedures

The Ontario Enhanced New Housing Rebate (ENHR), released under Canada Revenue Agency (CRA) GST/HST Notice 346 (replacing the June 2026 guidance), establishes updated rules for tax relief on newly constructed and substantially renovated residential properties in Ontario. Combined with the standard Ontario New Housing Rebate, eligible individuals can receive up to $80,000 in provincial Harmonized Sales Tax (HST) relief, alongside up to $50,000 through the provincial Ontario New Home Affordability Payment (ONHAP).

This technical guide by tax expert Nina Crawford breaks down the full statutory criteria, assignment sale rules, calculation brackets, and step-by-step CRA rebate filing instructions for home buyers, owner-builders, co-op housing shares, and real estate professionals.

Core Eligibility Criteria & Critical Statutory Definitions

To qualify for the ENHR, buyers must satisfy stringent parameters regarding critical dates, intent of occupancy, and legal relationships.

1. Critical Timeline & Agreement Dates

• Builder-Built Homes: The Agreement of Purchase and Sale (APS) must be signed on or after April 1, 2026, and on or before March 31, 2027.
• Owner-Built Homes & Substantial Renovations: Construction or major reconstruction must commence on or after April 1, 2026, and on or before March 31, 2027.

2. Primary Place of Residence (PPR)

The property must be acquired or built for use as the primary place of residence of the individual purchaser or a qualifying relation. Under CRA Policy Statement P-228, an individual may own multiple properties, but can maintain only one primary place of residence at any given time.

3. Definition of “Relation”

Under the Income Tax Act, eligible relations include individuals connected by:

• Blood: Parents, children, grandchildren, or siblings.
• Marriage or Common-Law Partnership: A spouse or common-law partner, as well as persons connected to the spouse/partner by blood.
• Adoption: Legally or in-fact adopted children.
• Former Relationships: Includes former spouses or former common-law partners.

Ontario ENHR & ONHAP Rebate Rate Breakdown

The ENHR applies exclusively to the 8% provincial component of the 13% HST paid on new residential real estate in Ontario. The provincial government also provides the Ontario New Home Affordability Payment (ONHAP), which offsets up to 100% of the 5% federal portion of the HST (up to $50,000), minus any standard federal GST/HST new housing rebate claimed.

Qualification Rules for Special Property & Transaction Types

1. Assignment Sales

If an Agreement of Purchase and Sale is assigned from an original purchaser (assignor) to a new buyer (assignee):

• The ENHR eligibility depends on the date the original APS was executed. The original agreement must fall between April 1, 2026, and March 31, 2027.
• The assignee (ultimate buyer closing on the home) must intend to occupy the property as their (or a qualifying relation’s) primary place of residence.
• Taxable assignment fees paid by the assignee are integrated into the total acquisition cost calculations for HST purposes.

2. Leased Land & Mobile/Floating Homes

• Leased Land: Applies when an individual purchases the residential building structure from a builder while leasing the underlying land under an agreement extending at least 20 years or containing an option to purchase the land.
• Cooperative Housing (Co-op): Purchase of shares in a co-op housing corporation qualifies provided the share confers the right to occupy a new residential unit as a primary place of residence.

3. Owner-Built Homes & Substantial Renovations

• Applies to individuals who build their own home or hire a general contractor to construct or substantially renovate a home (where 90%+ of the existing building structure except the foundation/exterior walls is removed/replaced).
• All HST receipts for materials, services, and land purchase must be retained for verification.

Step-by-Step CRA Rebate Application Process

Option A: Builder Credited at Closing (Purchased from Builder)

In most turnkey transactions, the builder offsets the rebate directly against the purchase price at closing.

1. Complete CRA Form GST190 (GST/HST New Housing Rebate Application for Houses Purchased from a Builder) alongside the Ontario ENHR Attachment Schedule.
2. Execute the builder’s indemnity agreement transferring the rebate claim rights to the developer.
3. The builder deducts up to $80,000 (plus applicable ONHAP amounts) directly from the net cash required on closing.

Option B: Buyer Direct CRA Application (Not Credited by Builder)

If the builder does not credit the rebate at closing, or in complex assignment scenarios:

1. Pay the full HST to the builder at closing.
2. Complete CRA Form GST190 and submit it directly to the Canada Revenue Agency.
3. Include proof of closing (Statement of Adjustments, registered deed, and executed APS).
4. Filing Deadline: Must be filed within two years of the tax point (ownership transfer or occupancy date, whichever occurs first).

Option C: Owner-Built Homes

1. Complete CRA Form GST191 (GST/HST New Housing Rebate Application for Owner-Built Houses) and the ENHR calculation schedule.
2. Submit all relevant contractor invoices and land purchase documentation.
3. Filing Deadline: Must be submitted within two years of the completion date or substantial completion of construction.

Information Source: CRA GST/HST Notice 346 – Ontario Enhanced New Housing Rebate

Additional Read: CPP & OAS application wait time

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