HST/GST Rebate on New Homes

In Ontario, purchasers of new homes are eligible for 36% of the 5% federal portion of the HST and up to 75% of 8% the provincial portion of the HST.

The federal rebate is calculated on a sliding scale. For a property with a base price up to $350,000.00 the purchaser may recover 36% of the 5% federal portion rebate. From $350,000, the rebate declines as the price of the property (exclusive of any HST) increases. For a property with a base price of $450,000.00 the rebate is not available.

In case of the provincial rebate, 75% of the 8% provincial portion to a maximum of $24,000.00 on any purchase price up to $400,000.00 can be claimed.

Note- HST is not applicable to resale homes.

Eligibility

You may be eligible to claim an HST/GST rebate on your new home if:

  • You purchase a new or substantially renovated home from a builder or ask someone to build a new home for you. It also includes a new mobile home or a floating home or a capital share in new co-operative housing corporations. Rebuilding the house to cover fire damages also makes the owner eligible for a rebate.
  • You must intend to make the new home your principal residence and your spouse or children must be the first occupants of that property after possession.

Generally the GST rebate is directly assigned to the builder by the buyer where GST is part of the sale price of the property.

For further information when buying a new home please contact Nanda & Associate lawyers or book an appointment at 905-405-0199

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