The Ontario HST Rebate on New Homes, Explained

HST applies to new-construction homes in Ontario, but principal-residence buyers can recover a substantial portion through the federal and provincial New Housing Rebate programs. Eligible buyers of qualifying new homes can recover up to $130,000 in total. Investors who lease the home instead use the New Residential Rental Property Rebate, which follows a different process.

Why HST applies at all. A new home is a newly manufactured good in the eyes of the Canada Revenue Agency, so the 13% Harmonized Sales Tax applies to the purchase. Resale homes are generally exempt because tax was already paid when the home was first built. To keep new housing affordable, both levels of government run rebate programs that return a large share of that tax to qualifying buyers.

Who qualifies. The New Housing Rebate is for buyers who intend to use the home as their primary place of residence, or as the primary residence of a close relation. Intention is judged at the time of signing. If you sign as an end-user and then decide to lease the home before closing, the builder will typically require the rebate credit back at closing and you must apply separately under the rental programme.

How much you can recover. The recoverable amount combines a federal component and an Ontario component and is calculated on a sliding scale tied to purchase price. Eligible buyers of qualifying new-construction homes can recover up to $130,000 in total. Because the calculation is price-sensitive, the exact figure for your purchase should be confirmed with your lawyer or accountant before you close.

Ontario HST Rebate on New Homes | Who Qualifies & How Much

Green Valley Estates is built by Bayview Wellington Homes on the west side of Simcoe Road at Jonkman Boulevard in Bradford West Gwillimbury, Ontario. Phase 4 is now selling, with freehold townhomes and detached singles from the low $700s.