GST/HST New Housing Rebate
When buying a pre-construction home in Ontario, you may qualify for the GST/HST New Housing Rebate. This can save you thousands and is often built into the builder’s price (depending on how you’re purchasing and using the home).
Quick note
In most owner-occupied pre-con purchases, the rebate is typically assigned to the developer and reflected in the price. For rentals and some assignment situations, the process can change.
1️⃣
Homes Under $368,200
Formula:
Price ÷ 1.052Builder Price$350,900
Net Price$333,555
Rebate Total$26,017
2️⃣
$368,200–$424,850
Formula:
(Price + $28,350) ÷ 1.133Builder Price$400,900
Net Price$378,861
Rebate Total$27,214
3️⃣
$424,850–$484,500
Formula:
(Price + $52,350) ÷ 1.193Builder Price$430,900
Net Price$405,071
Rebate Total$26,831
4️⃣
Homes Over $484,500
Formula:
(Price + $24,000) ÷ 1.13Builder Price$600,900
Net Price$553,009
Rebate Total$24,000
Eligibility Criteria
- Must be a new pre-construction home purchased from a developer.
- The home must be the primary residence of the purchaser or their immediate family. For rental properties, a minimum 1-year lease agreement is required.
Application Process
- Owner-occupied: typically assigned to the developer and factored into the purchase price.
- Rental property: purchaser usually pays the rebate amount at closing, then applies post-closing with a 1-year lease.
- Assignment sales: new purchaser typically applies post-closing with proper documentation.
Important Considerations
Plans can change (occupy → rent)
Non-family co-owners may need to pay at closing
Submit within 2 years of closing
Note: Rebates and eligibility depend on use, ownership structure, and documentation. Always confirm with your lawyer and the CRA rules applicable to your situation.