Please be advised that this week the Canada Revenue Agency (CRA) updated its website to include the new forms for the GST/HST New Housing Rebate. These forms can be found below:
Important Details of the GST190 GST/HST New Housing Rebate Application for Houses Purchased from a Builder
As you may recall, the 13 percent HST rebate consists of an eight percent provincial portion and a five percent federal portion.
With respect to the eight per cent provincial portion administered by the CRA, revised application forms have been published that set out the process and the details required to claim the rebates.
As outlined in the forms, the Province of Ontario will also provide the Ontario New Home Affordability Payment (ONHAP), which is equal to the five per cent federal portion of the HST, up to a maximum of $50,000. Unlike the enhanced new housing rebate, which follows the CRA processes for the existing new housing rebate, this ONHAP payment is made directly by the Province of Ontario.
A separate application is not required to receive the ONHAP. Instead, claimants must complete the "ONHAP — Claimant's Consent to Share Information" section on page three of the GST/HST new housing rebate application, authorizing the CRA to share the necessary information with the Province of Ontario for payment administration.
Please note that, unlike the 8% provincial portion, builders cannot claim a deduction for the ONHAP on their GST/HST return. This payment is funded separately by the Province of Ontario. Please note that this does not mean the ONHAP cannot be assigned back to the builder; it simply means the Province of Ontario is processing the ONHAP payment separately, not the CRA. As a result, it is not claimed as a deduction on the GST/HST return that is sent to and processed by the CRA.
Ontario Home Builders' Association and BILD are working with MNP on a Q&A document to provide additional clarity to members. Members may submit questions to connect@ohba.ca, and we will forward them to MNP for review and feedback.
While the process is not as direct as the industry had hoped, it represents the most practical option available and enabled the rebate to be implemented as quickly as possible within the regulatory framework established by both governments.
Infographic — Example of the Claim Process
To illustrate the administrative process, we are re-circulating the CRA infographic, which illustrates an example based on a typical situation where a buyer, who is not a first-time home buyer, enters into an agreement on or after April 1, 2026, and on or before March 31, 2027, to purchase a home from a builder for use as their primary place of residence. The buyer wants the builder to credit the relief at closing to reduce the home's final price.
Step 1 — Buyer
Purchases a new home from the builder for $1 million plus $130,000 HST.
Agrees to assign or otherwise pay the eight per cent enhanced new housing rebate ($80,000) and five per cent Ontario top-up relief ($50,000) to the builder.
Completes the CRA’s GST/HST New Housing Rebate form (GST190) and associated schedule (RC7190-ON), and provides them to the builder.
Receives the benefit of the eight per cent enhanced new housing rebate and five per cent Ontario top-up relief upon closing, reducing the final amount payable for the home.
Step 2 — Builder
Credits the buyer the eight percent enhanced new housing rebate ($80,000) and the five percent Ontario top-up relief ($50,000) at closing.
Completes the GST/HST return reporting GST/HST collected on the sale of the home ($130,000) and claiming a deduction of $80,000 for having credited the eight percent enhanced new housing rebate to the buyer.
Does not claim a deduction of the $50,000 for the five percent Ontario top-up relief, which is provided separately by Ontario.
Submits to the CRA its GST/HST return, the completed GST/HST new housing rebate form and schedule with consent to share relevant contact, banking, and rebate information with Ontario. A separate form is not required for the five percent Ontario top-up relief.
Step 3 — Government
The CRA processes the rebate forms and GST/HST returns submitted by the builder, verifies buyer eligibility for the eight per cent HST rebate, and shares relevant information with Ontario to assist Ontario in its processing of the $50,000 top-up payment to the builder.
For other situations (e.g., the builder does not credit the rebate), buyers should visit the First-time home buyers’ GST/HST rebate or the GST/HST new housing rebate for more information.
