HST on New Build Closing Costs in Ontario: Buyer Guide

With a new home or condo from a builder, HST is often one of the largest items in the deal. Rebates can bring that cost down a lot, but they come with conditions about price, timing and who will live in the home.

This article outlines how HST and the main rebates work in Ontario. Rebate rules are time-limited and have been changing, so treat this as a starting point and confirm the details for your agreement with your lawyer or accountant.

How HST applies to a new home

Ontario HST is 13%. A service related to real property located in Ontario, such as a commission, is subject to HST at the Ontario rate.

For a new home, ask the builder in writing whether the price in your agreement includes HST or whether HST is added, and whether the builder will credit any rebate on closing. That wording is in your agreement of purchase and sale.

The federal First-time Home Buyers' GST/HST rebate

This rebate can return up to 100% of the GST, or the federal part of the HST, on a new home, to a maximum of $50,000. It applies to agreements signed on or after March 20, 2025 and before 2031.

The rebate is full for homes up to $1 million, reduced between $1 million and $1.5 million, and nil at $1.5 million or more. The buyer must be 18 or older, a citizen or permanent resident, and the first occupant using the home as a primary residence.

The Ontario Enhanced New Housing Rebate

For new homes bought from a builder with the agreement signed between April 1, 2026 and March 31, 2027, the Ontario Enhanced New Housing Rebate (ENHR) applies. Together with the Ontario new housing rebate, it refunds up to $80,000 of the 8% provincial part of HST.

Because this rebate is time-limited and its details have been developing, check current Canada Revenue Agency guidance before closing.

How this fits into your closing

Whether the builder credits a rebate on closing or you apply for it afterward depends on your agreement and on the rebate's rules.

HST is separate from land transfer tax. The value of the consideration for land transfer tax includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades, but it does not include HST paid on the purchase price.

What to do next

• Confirm in your agreement whether the price includes HST.
• Check the date you signed against the rebate windows.
• Confirm you meet the occupancy and eligibility conditions, including who will be the first occupant.
• Ask who claims each rebate and when the builder credits it.
• Ask your lawyer or accountant to confirm current CRA guidance before closing.

Frequently asked questions