Quick Answer
Ontario buyers of a new factory-built home can receive up to $24,000 in combined HST rebates — a federal New Housing Rebate (up to $6,300 for homes under $450,000) plus an Ontario New Housing Rebate. The home must be your primary residence. Both CSA A277 modular and CSA Z240MH manufactured homes qualify.
Status as of June 2026 — read this first
New-home HST rules are changing in 2026, and the headlines have run ahead of the law. Here is what is actually in effect versus what is still a proposal:
- In effect today: the long-standing federal and Ontario New Housing Rebates (below), and — for first-time buyers — the new federal GST rebate (Bill C-4, in force since March 2026) that removes the 5% federal GST on a qualifying new home.
- Proposed, not yet law: the widely reported "up to $130,000" relief — a temporary measure that would rebate the full 13% HST (up to a $130,000 cap) for all buyers, including investors, on agreements signed April 2026–March 2027 — and a separate first-time-buyer Ontario PST rebate. Ontario's enabling Bill 114 received Royal Assent in May 2026, but the rebates themselves await the federal legislation. Until they are law, treat them as coming, not available.
> A note on HST. New-home HST rules in Canada are changing in 2026. Some pieces are now law, others are still being finalized, and the combined process runs through the Canada Revenue Agency. Until that settles, treat it simply: you pay the full HST on your purchase, and any rebate you qualify for is yours to claim afterward, through the CRA, with your lawyer at closing. We'll tell you which rebates exist and roughly what they're worth — eligibility and the claim itself are yours, not ours to administer or guarantee. When the federal rules are law and the CRA publishes the process, we'll update this guide with current guidance.
The Two New Housing Rebates Available Today
When you buy a new modular home in Ontario as your primary residence, you may be eligible for two long-standing rebates:
1. Federal GST/HST New Housing Rebate
- Maximum rebate: $6,300
- Eligible if purchase price is under $450,000
- Phases out between $350,000–$450,000
2. Ontario New Housing Rebate
- Maximum rebate: 75% of the provincial portion of HST, up to $24,000 combined
- No purchase price cap (unlike the federal rebate)
| Home Price | Federal Rebate | Ontario Rebate | Total |
|---|---|---|---|
| Under $350,000 | Up to $6,300 | Included | Up to $24,000 |
| $350K–$450K | Partial | Included | Varies |
| Over $450,000 | $0 | Up to $17,700 | Up to $17,700 |
First-time buyers may also qualify for the new federal GST rebate (Bill C-4) on top of these — ask your lawyer whether your agreement and closing dates fit.
What the "$130,000" Number Really Means
The "$130,000" figure is the cap on a proposed temporary measure that would rebate the full 13% HST on a new home up to $1M. Two things matter for a modular buyer: it is not law yet, and even once it is, that cap is only reached near a $1M price. The homes we sell are well under that — so the relevant number is the full rebate on your actual price, not the $130,000 headline. We quantify it for your specific home and situation.
How to Claim
You pay the full HST on your purchase, then claim the rebate you qualify for afterward — filed with the CRA, through your lawyer, at or after closing (CRA Form GST190). We tell you which rebates apply and roughly what they are worth; the eligibility and the claim itself are yours, not ours to administer or guarantee. Whether a rebate can instead be credited on closing depends on your agreement and your seller — confirm that with your lawyer before you sign.
A Forward-Looking Eligibility Note
The new 2026 rebates are forward-looking by design. As a rule of thumb: an agreement of purchase and sale signed before a program's start date generally will not qualify for that new relief, and cancelling an old agreement to re-sign — or taking over a contract by assignment — does not reset that clock. Your lawyer and the CRA confirm your eligibility; this is not tax advice.
Land-Lease Consideration
In a land-lease community, HST applies only to the home portion — not the land. A Fountainhead Villages home at ~$265,000 falls squarely within the full federal rebate range.
Which Factory-Built Homes Qualify
The HST New Housing Rebate doesn't distinguish between CSA A277 modular and CSA Z240MH manufactured homes — both qualify, as long as the home is new and is your primary residence. CRA's own guidance lists a new modular home as eligible, including on leased land. The Parkland Series homes ModularHomes400.com sells today (CSA Z240MH) and the modular ADU/garden suite product coming soon (CSA A277) are both eligible.
Informational only — not legal or tax advice. Rebate eligibility is specific to your situation; verify with your lawyer, your lender, and the CRA.
Frequently Asked Questions
Is the $130,000 HST rebate available now?
Not yet. The "up to $130,000" figure refers to a proposed temporary measure that would rebate the full 13% HST (capped at $130,000) on a new home up to $1M. As of June 2026 it is not yet law — Ontario's enabling Bill 114 passed in May 2026, but the rebate awaits the federal legislation. The rebates you can actually claim today are the existing federal and Ontario New Housing Rebates and, for first-time buyers, the new federal GST rebate. For an affordable modular home well under $1M, the relevant relief is the full rebate on your actual price, not the $130,000 cap.
Does the HST rebate apply to modular homes in land-lease communities?
Yes — both CSA A277 modular and CSA Z240MH manufactured homes qualify for the HST New Housing Rebate regardless of whether you own the land or lease it, as long as the home is your primary residence.
How long do I have to claim the HST rebate?
You must file within 2 years of the date ownership is transferred to you. File promptly after closing.
Is HST charged on the land in a land-lease community?
No. HST applies to the new home only. Monthly land lease payments are generally exempt from HST in a residential context.