What is the Ontario new housing HST rebate and am I eligible?

There are two new housing HST rebates available in Ontario — a federal rebate under the Excise Tax Act and a provincial rebate under the New Harmonized Value-Added Tax System. Together, they can reduce the net HST payable on a new home purchase or provide a refund to qualifying buyers.

The federal portion of the rebate is available on new homes up to a specified purchase price threshold, with the rebate phasing out as the price rises. Buyers above the upper threshold receive no federal rebate. The provincial component of the Ontario new housing rebate is available regardless of purchase price for eligible buyers. Both rebates are typically credited directly by the builder on closing and are built into the final price — the purchaser assigns the rebate to the builder in exchange for the credit.

To qualify, the buyer must intend to use the property as their primary place of residence, or purchase it for a qualifying family member to use as a primary residence. Investors and buyers who do not intend to reside in the property do not qualify for the rebate and must pay the full HST. Misrepresenting your intended use to the CRA to obtain the rebate is tax fraud.