09/20/2026
1. Existing GST/HST New Housing
Rebate
This is the long-standing CRA rebate program for:
• New homes bought from a builder
Key points:
Federal rebate phases out once the home exceeds $450,000
Ontario's provincial rebate can still apply even above $450,000
Maximum Ontario rebate is generally up to $24,000 under the old rules
2. Financial Institution Program
CMHC Mortgage Loan Insurance:
Deposit structure:
5% first 500,000
10% on the remainder
Premium added to mortgage
Conditions:
Minimum credit score of 600
Entire monthly debt load should not exceed 44% of gross monthly income
Max home cost = $1.5M
3. NEW Expanded 2026 Ontario +
Federal Rebate Programs
The Provincial/Federal government announced expanded relief for new homes in 2026.
For eligible first-time home buyers:
Up to 100% of the 5% federal GST
Potentially up to 100% of Ontario's 8% provincial HST
Combined savings could reach $130,000 on qualifying
Conditions:
First-time buyer federal GST rebate
Applies generally to agreements signed:
On or after March 20, 2025, before 2031
Ontario expanded HST relief to all Home Buyers
For broader Ontario enhanced rebates:
Purchase agreements generally must be signed between:
April 1,2026 to March 31, 2027
4. Tax-Free Savings Account (TFSA)
Flexible savings tool:
Withdraw any amount tax-free
Use for down payments, second homes, renovations, etc.
Conditions:
Withdrawals can be recontributed, but it is not required
NON-GOVERNMENT SOURCES
For funding and budget gaps, and/or financial deficits, consider tapping into:
1. Chequing/ Savings / GICs / Other Investments
• Cashing in investments typically has little to no capital gains impact, making them an easy source of funds & greater profit potential for a property purchase
2. Home Equity Line of Credit (HELOC) - Secured
Borrow against the equity in an existing property OR
- Borrow against the value of eligible investments without selling them
3. Line of Credit / Loan - Unsecured
• May be eligible for interest write-offs (subject to tax rules and eligibility)
4. Family Assistance / Gifted Funds
• Immediate family members can provide a gift letter for lender acceptance and/or a personal guarantee
