Quick Answer
Ontario's enhanced HST rebate is law: buyers of a new factory-built home — CSA A277 modular or CSA Z240MH manufactured — recover the full 13% HST, up to $130,000, on agreements of purchase and sale signed April 1, 2026 through March 31, 2027. On a modular home under $1M, effectively all the HST comes back; your lawyer handles the claim.
Status as of September 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 received Royal Assent. It does not create a rebate: it authorizes $1.7B in payments to the provinces to improve housing supply. Ontario is using its allocation to fund the 5% top-up below.
- 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; the CRA issued an updated version in August 2026 adding eligibility and application detail.
Above $1M the provincial rebate does not disappear — it flattens: $80,000 on a home between $1M and $1.5M, a partial rebate from $1.5M to $1.85M, and the ordinary $24,000 Ontario rebate at $1.85M and above. The ENHR carries the same conditions as the existing Ontario new housing rebate, which means it is for a home bought as your (or a relation's) primary place of residence.
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, using Form GST190 with its Ontario schedule, Form RC7190-ON (or Form GST191 with Form RC7191-ON for an owner-built home). Investors buying to rent pay the HST at closing and claim relief from the CRA post-closing; CRA has confirmed the enhanced rental-property rebate exists but says its dedicated administrative notice for it is expected by October 2026 — the mechanics of that specific claim aren't fully published yet, including whether the recoverable amount matches the owner-occupant's 13% or whether the ONHAP top-up applies to a rental purchase. 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)
3. First-time buyer rebates (these sit alongside, not inside, the enhanced rebate)
- Federal FTHB GST rebate (Bill C-4, Royal Assent March 13, 2026): removes the 5% GST on a new home up to $1M for a first-time buyer, reduced between $1M and $1.5M — worth up to $50,000. It applies to agreements entered into on or after March 20, 2025 and before 2031, so its window is far wider than Ontario's.
- Ontario FTHB rebate: up to $80,000 of the provincial part of the HST for a first-time buyer.
The provincial 8% piece and the federal-equivalent 5% piece are sequenced separately. On the 8% provincial part: you may claim either or both the Ontario ENHR and the Ontario FTHB rebate, but total relief cannot exceed the lesser of $80,000 and the provincial HST you actually paid. On the 5% federal-equivalent part: the province's top-up is the Ontario new home affordability payment (ONHAP), and CRA's guidance is to claim the federal FTHB GST rebate first — only any portion of the 5% that the FTHB rebate can't cover is recoverable through ONHAP. Since the FTHB rebate already removes the full 5% GST on a home up to $1M, a first-time buyer typically gets $0 from ONHAP on a home in that range — their 5% relief comes from FTHB, not ONHAP, and the two don't stack. Your lawyer should sequence this; it is the one part of the framework where the order of claims changes the outcome.
What the "$130,000" Number Really Means
The "$130,000" figure is the cap, and you only reach it at $1M — the 13% of a $1M home. 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.
One timing point CRA has published. The CRA has said it will begin processing Ontario enhanced rebate applications only after its system changes land in fall 2026. ONHAP doesn't need its own application — you claim it by checking the ONHAP consent-to-share section on Form GST190 or GST191 (the builder has a matching consent section if they're crediting it), which lets the CRA pass your contact, banking, and rebate details to the Province of Ontario. ONHAP is then paid separately by the Province once the ENHR has been assessed — not by the CRA, and not in the same payment. If you are claiming after closing rather than taking a credit, plan for the money to come back in more than one piece, and not immediately.
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 its Ontario schedule, Form RC7190-ON). Confirm which path applies before you sign.
- Investor buying to rent: you pay the full HST at closing and claim relief through the enhanced rental-property rebate from the CRA after closing — CRA's dedicated notice for that rebate is expected by October 2026, so confirm the current mechanics with your lawyer closer to closing. The rental route is a different rebate with its own calculation: the amount recoverable is not confirmed to match the owner-occupant's 13%, and whether the ONHAP top-up applies to a rental purchase isn't established until CRA publishes that notice. 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. Where the land is leased directly from the same builder under the purchase agreement, the ENHR's value cap for that route is actually higher than the general scale — the FMV threshold is $2,090,500, not $1,850,000. A 55+ community home at an illustrative ~$265,000 sits far below either 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.
Frequently Asked Questions
Is the $130,000 HST rebate available now?
Yes — it is now law. Ontario's Bill 114 (Royal Assent May 12, 2026) and Ontario Regulation 196/26 enacted the provincial side; the federal Bill C-26 (Royal Assent June 18, 2026) funds it by authorizing payments to the provinces, and Ontario is using its allocation for the 5% top-up. The CRA set out how it will be administered in Notice 346 (last updated August 2026). The enhanced rebate returns the full 13% HST — up to $130,000 — on a qualifying new home up to $1M, for agreements of purchase and sale signed April 1, 2026 through March 31, 2027, retroactive to April 1. For an affordable modular home well under $1M, the relevant relief is the full 13% on your actual price, not the $130,000 cap.
Can the HST rebate be credited at closing?
The law allows it for owner-occupants — where the purchase agreement provides for it, the rebate can be credited at closing, reducing both the cash you need on closing day and the mortgage you carry. Modular Homes 400 is a reseller and does not credit or administer the rebate; on our homes, any closing credit is handled between the manufacturer and your lawyer, so confirm the mechanics on your specific deal before you sign. If no credit applies, you pay the HST at closing and your lawyer claims the full rebate from the CRA afterward. Investors buying to rent cannot receive a credit at closing — they pay the full HST and claim relief through the enhanced rental-property rebate from the CRA after closing; CRA's dedicated notice for that rebate is expected by October 2026.
Does the HST rebate apply to modular homes in land-lease communities?
It can, but leased land adds a condition. CRA lists a new mobile home — which includes a modular home — bought from a builder (and for a mobile home the manufacturer or vendor counts as the builder) as an eligible home type. Where you buy the home and lease the land from that same builder under the same agreement, the lease must be for 20 years or more, or give you the option to buy the land — and the value cap for that route is $2,090,500, higher than the general $1,850,000 threshold. A mobile or modular home also has a second route: you may have the option to treat it as an owner-built house instead, which is how many land-lease purchases qualify — but the owner-built route carries an earlier completion deadline (substantially complete before 2030, versus 2031 for a builder purchase). Which route fits your deal, and what deadline applies, is a question for your lawyer before you sign, not after.
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.
How much HST rebate do you get on a typical modular home in Ontario?
On a $200,000 modular home, the enhanced HST rebate returns roughly $26,000 — the full 13% HST on the purchase price. On a $300,000 package, that works out to roughly $39,000 back. The $130,000 figure often quoted is only a cap reached at the $1M price point; homes priced well under $1M get the full 13% refunded, not a capped partial amount.
Can first-time buyers combine the FTHB rebate with the enhanced HST rebate?
Yes, but the two pieces work differently. On the 8% provincial part, first-time buyer rebates sit alongside the Ontario ENHR — you can claim either or both, capped at the lesser of $80,000 and the provincial HST you actually paid. On the 5% federal-equivalent part, CRA guidance is to claim the federal FTHB GST rebate first (worth up to $50,000); only any leftover amount it doesn't cover is recoverable through the province's ONHAP top-up. Since the FTHB rebate already zeroes the 5% GST on a home up to $1M, a first-time buyer typically gets $0 from ONHAP in that price range — the two don't stack, the FTHB rebate simply does that job instead.
What is ONHAP and do I need to apply for it separately?
ONHAP — the Ontario new home affordability payment — is the Province's name for the 5% federal-equivalent top-up. It is not a separate application: you (and the builder, if they're crediting it) check the ONHAP consent-to-share section on Form GST190 or GST191, which lets the CRA pass your contact, banking, and rebate information to the Province of Ontario. The Province then pays ONHAP separately from the CRA's rebate, after the ENHR has been assessed. ONHAP is also reduced by any federal first-time home buyers' GST/HST rebate you've already claimed on that same 5% — for many first-time buyers under $1M, that means ONHAP itself is $0.