Ontario Owner Built Home & Substantial Renovation Rebates

The $130,000 Windfall: How Ontario’s New Rebate Expansion Changes Everything for Homeowners

If you’ve been planning a major renovation or building your dream custom home in Ontario, the financial landscape just shifted in your favor. Recent legislative changes have unlocked a massive opportunity: rebates of up to $130,000 for substantial renovations and new builds.

This isn't just a small tax credit; it is a complete game-changer for Ontario’s luxury market and custom-build industry.

What is the $130,000 Rebate?

As of April 1, 2026, the Ontario government, in partnership with federal initiatives, has expanded the HST New Housing Rebate. For a limited window (Agreements signed between April 1, 2026, and March 31, 2027), eligible projects can now recover up to 13% of the HST, capped at a staggering $130,000.

Does Your Project Qualify?

To tap into the maximum $130,000 rebate, your project typically needs to meet specific criteria that move it beyond a "simple renovation" and into the category of a Substantial Renovation or Custom Build.

• The 70% Rule: For renovations, at least 70% of the interior of the existing house must be removed or replaced (excluding the foundation, external walls, and roof).

• Primary Residence: The home must be intended as your primary place of residence.

• Price Tiers: The full rebate applies to homes valued up to $1.5 million. For homes valued between $1.5M and $1.85M, a sliding scale applies, while homes over $1.85M still qualify for the legacy $24,000 rebate.

Why Timing is Everything

This enhanced rebate is a temporary measure. To secure the six-figure savings, the Agreement of Purchase and Sale (APS) must be signed within the 2026-2027 window. Furthermore, construction must generally begin by December 31, 2028, and be completed by the end of 2031.

Pro Tip: Don't leave this to your builder or accountant to "figure out later." Many homeowners miss out because their contracts aren't structured correctly from day one to meet the CRA's strict definitions of a "substantial renovation."

Retroactive Claims: Did You Finish Recently?

Even if you don't fall into the new 2026 window, you aren't out of luck. You can still claim up to $24,000 retroactively for projects completed within the last two years.

General Retroactive Criteria:

• Minimum spend of $125,000.

• Renovation cost of approx. $90/sqft.

• 70% to 90% structural renovation.

Don’t Leave Your Money on the Table

Navigating CRA audits and rebate applications is complex. We specialize in ensuring your custom home or major renovation is positioned to maximize every dollar available under the new Ontario legislation.

Ready to see how much you can claim back?

Contact Us Today for a Free Consultation:

📞 Phone:289-812-7179

📧 Email: [email protected]

🌐 Website: https://RebateMax.ca