How do HST rebates work on a new Ontario home?
A new Ontario home is generally subject to 13% HST: 5% federal GST and 8% provincial HST. Builders often advertise an “HST included” price based on the buyer qualifying for a rebate and assigning that rebate to the builder. That assumption must match how you will actually use the home.
The CRA new housing rebate guide is the primary source for current federal rules and forms.
Who can qualify for the standard rebate?
Eligibility depends on who buys the home, who will occupy it, the purchase price and the transaction structure. An owner who intends the home as a primary place of residence for themselves or a qualifying relation may use the owner-occupied route. An investor who rents to a long-term tenant may need the separate new residential rental property rebate and may have to fund the rebate amount at closing before applying.
A quick project summary—such as Aquanova Condos—cannot determine eligibility. Give your agreement and intended-use facts to an accountant or lawyer.
What are the standard rebate amounts?
Under the longstanding federal formula, the GST portion may be rebated by 36% up to $6,300 for lower-priced homes, phasing out as price rises from $350,000 to $450,000. Ontario’s provincial new housing rebate can be up to $24,000 under the standard rules.
These are maximums, not automatic credits. Price, use and documentation affect the result.
What changed for first-time buyers?
Federal first-time home buyer GST relief has received Royal Assent and can provide relief up to $50,000 on qualifying new homes, with price-based limits and detailed conditions. Ontario’s March 2026 budget proposed separate provincial relief, but implementation details have been evolving.
Because this is a live policy area, verify the current rule on the CRA page and Ontario Ministry of Finance before promoting or relying on a number. This guide deliberately does not treat a proposal as money available at closing. Ask for confirmation in writing before using the relief in your budget.
What should buyers do before signing?
Ask the builder how HST is reflected in the price, which rebate is assumed, and what happens if you do not qualify. Then confirm the answer independently. Keep occupancy evidence, leases and tax records required for the applicable claim.
Broker’s bottom line
Do not choose an occupancy story to fit a rebate. State your real intention, obtain tax advice and budget for the possibility that the builder requires the rebate amount on closing. A correct plan protects both cash flow and compliance. Keep all eligibility evidence and tax advice with your closing file. Preserve enough cash to close if timing changes. Do not spend the expected rebate early.