GST/HST New Housing Rebate

You may be eligible to claim a rebate for part of the GST you pay on the purchase price of a new home or condo, or the cost of building or substantially renovating your home. (See below for details)

NEW construction subject to GST. New home buyers can apply for a rebate of the GST applicable to the purchase.

RESALE homes are exempt from the GST

A maximum rebate of $7,560 for homes costing less than $350,000 before GST

For NEW construction priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately.

NEW construction priced $450,000 before GST or higher would not receive a rebate.

In the Greater Toronto Area (GTA), most builders include the GST in the price, and any rebate would be assignable to the builder as they would be absorbing the net GST cost.

What is HST?
HARMONIZED SALES TAX (HST) is a combination of Provincial Sales Tax (PST) with the GST into a single sales tax of 13%. When implemented, in addition to the 5%GST, the 8%PST would apply to the purchase price of new construction (purchase price of resale properties remain exempt from any sales tax). New construction purchased after June 18, 2009 and closing after July 1, 2010, would be subject to HST. The Provincial Government is proposing a rebate of the 8% portion of the HST (in addition to the existing rebate for the GST), on the first $400,000 of a new construction purchase price.

Despite vigorous opposition by OREA and other groups, the Government of Ontario and the Government of Canada have both passed legislation that will implement the Harmonized Sales Tax (HST).

The HST effectively combines the eight per cent Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST) for a combined 13 per cent sales tax rate. The HST will come into force on July 1, 2010 and apply the PST to a number of goods and services that are currently exempt.

For housing, the HST will add eight per cent more tax on services related to real estate transactions including legal fees, real estate commissions, home inspections and moving costs. OREA estimates that the HST will add about $1,500 in new taxes to the costs of an average residential real estate transaction.

The Government of Ontario held only one day of public hearings on Bill 218. Speaking on behalf of Ontario REALTORS® and homeowners, OREA was among the select number of groups to present to the committee.