Short answer
Ontario’s temporary enhanced new-housing relief can materially reduce HST for eligible agreements signed from April 1, 2026 through March 31, 2027, but the buyer, property, price, occupancy or rental use and agreement date must all fit.
The client problem behind this rule
A buyer sees “up to $130,000” and treats the maximum headline as guaranteed cash for the down payment. The actual benefit may be reduced by price, other rebates, transaction structure and whether the builder credits it at closing or the buyer claims it later.
What the official source confirms
CRA’s Notice 346 describes the Ontario enhanced new housing rebate and Ontario New Home Affordability Payment. The temporary agreement window is April 1, 2026 through March 31, 2027, with detailed eligibility and interaction rules for other federal and provincial rebates.
What this does not mean
The program is tax relief, not a mortgage approval. First-time-buyer and general new-housing provisions have different conditions, and the combined provincial relief is capped. Assignment, related-party, substantial-renovation and rental transactions need specialized tax and legal review.
A practical Ontario example
Illustration only: Two buyers purchase similar new homes for the same price. One signs inside the temporary window and meets the first-time and occupancy tests; the other signed earlier or plans a rental. Their available relief and timing can be different even though the builder advertisements look identical.
Practical mortgage routes to explore
Ask the builder to show the HST clause and credit calculation in writing, then have the lawyer and tax adviser confirm eligibility. Build the mortgage approval using conservative cash-to-close figures until the credit is verified. Keep a backup plan for appraisal or rebate timing shortfalls.
Questions to ask before relying on this rule
- Is this rule currently in force, future-dated, proposed or expired?
- Does it apply to an insured mortgage, an uninsured mortgage, a tax program or only a regulated institution?
- Which facts in my file have been verified, and which are still assumptions?
- What remains subject to the lender’s own income, credit, property and exception policy?
- If the preferred A-lender route does not work, what would an alternative/B, MIC or private option cost—and what is the exit plan?
Rajiv’s broker review
The official rule is the starting boundary, not the complete approval answer. I would verify the client’s timing, purpose, property, income, credit and available documents, compare the relevant lender policies, and then stress-test the practical options. A lower-rate route is not better if the client cannot complete the transaction or exit it safely.
Would a second opinion help? Ask Rajiv for a mortgage rule and strategy review. Bring the rule, deadline and concern so the conversation can focus on what is confirmed, what is missing and what may still be possible.