HST Rebate on a New Modular Home in Ontario: How Much Can You Get?

Status as of July 2026 — the enhanced rebate is now law

The full 2026 HST-relief framework is enacted. The timeline:

• May 12, 2026 — Ontario's enabling Bill 114 (HST Relief Implementation Act) received Royal Assent.
• June 18, 2026 — the federal Bill C-26 (Improving Housing Supply Act) received Royal Assent.
• June 22, 2026 — Ontario Regulation 196/26 was filed, activating the 5% top-up alongside the enhanced 8% provincial rebate.
• June 23, 2026 — the CRA published Notice 346, its administrative guidance for the Ontario Enhanced New Housing Rebate.

What it delivers: the enhanced Ontario New Housing Rebate returns the full 8% provincial portion of HST (up to $80,000), and a 5% top-up (up to $50,000) returns the federal portion — together, the full 13% HST back, up to a combined $130,000, on a qualifying new home up to $1M. It applies to agreements of purchase and sale signed between April 1, 2026 and March 31, 2027, retroactive to April 1, 2026. Construction must begin by the end of 2028 and be substantially complete by the end of 2031.

Factory-built homes qualify. New modular and manufactured homes purchased from a builder are eligible home types — both CSA A277 modular and CSA Z240MH manufactured.

A note on HST. The rebate is law, but the mechanics matter. Modular Homes 400 is a reseller — we do not credit or administer the rebate. For an owner-occupant, the law allows the rebate to be credited at closing where the purchase agreement provides for it; on our homes, whether that credit is available is handled between the manufacturer and your lawyer at closing. If it isn't, the path is simple: pay the HST at closing and your lawyer claims the full rebate from the CRA afterward (the CRA's updated forms — GST190 with the revised Ontario schedule — were expected mid-July 2026). Investors buying to rent always use the after-closing path — the enhanced New Residential Rental Property Rebate is claimed from the CRA post-closing, with no credit at closing. We'll tell you which rebates apply and roughly what they're worth — eligibility and the claim itself are yours (and your lawyer's), not ours to administer or guarantee.

The Legacy New Housing Rebates (agreements outside the window)

If your agreement of purchase and sale was signed before April 1, 2026 (or after March 31, 2027), the long-standing rebates still apply for a primary residence:

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)

First-time buyers may also qualify for the federal first-time-buyer GST rebate (Bill C-4, in force since March 2026) — 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 the enhanced rebate — it's only reached on a home near $1M. The homes we sell are well under that, so the relevant number for a modular buyer is simpler and better: the full 13% HST on your actual price comes back. On a $200,000 home that's roughly $26,000; on a $300,000 package, roughly $39,000. We quantify it for your specific home and situation.

How to Claim

Two paths, depending on your situation:

• Owner-occupant: where the purchase agreement provides for it, the rebate can be credited at closing — you never front that portion of the HST. Modular Homes 400 does not credit the rebate: on our homes, any closing credit is handled between the manufacturer and your lawyer. Otherwise, you pay the HST at closing and your lawyer files the claim with the CRA afterward (Form GST190 with the Ontario schedule). Confirm which path applies before you sign.
• Investor buying to rent: you pay the full HST at closing and claim the enhanced New Residential Rental Property Rebate from the CRA after closing. Budget for that cash-flow gap.

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.

An Eligibility Note on Timing

The enhanced rebate is tied to when your agreement of purchase and sale is signed — April 1, 2026 through March 31, 2027. An agreement signed before the window generally does not qualify, 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 sits far below the $1M threshold, so the full 13% comes back on a qualifying purchase.

Which Factory-Built Homes Qualify

The HST rebates don't distinguish between CSA A277 modular and CSA Z240MH manufactured homes — both qualify, as long as the home is new. New modular and manufactured homes purchased from a builder are eligible home types under the enhanced rebate, and 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 General Coach ADU Series (CSA A277) are both eligible home types.

Informational only — not legal or tax advice. Rebate eligibility is specific to your situation; verify with your lawyer, your lender, and the CRA.