A new home in Ontario carries 13% HST. Two separate rebates claw part of it back, they work on completely different rules, and the federal one runs out at a price that no longer buys much.
CRA guide RC4028, GST/HST New Housing Rebate. Percentages, caps and phase-out thresholds checked on 28 August 2026.
The federal rebate returns 36% of the 5% GST portion, capped at $6,300. It begins shrinking once the price passes $350,000 and is gone entirely at $450,000 — thresholds that have not moved in a very long time, which is why most Ontario buyers get nothing from it.
The Ontario rebate returns 75% of the 8% provincial portion, capped at $24,000. It has no price ceiling at all, so the cap is reached at a $400,000 purchase price and every buyer above that receives the same $24,000.
On a builder purchase the rebate is normally assigned to the builder and is already baked into the price you were quoted. You never see the money, so it is easy to forget it was claimed on your behalf.
That matters because the rebate depends on you or a close relation occupying the home as a primary place of residence. Buyers who close and immediately rent the unit out, or who never move in, get reassessed for the whole amount later — with interest. There is a separate rental rebate for genuine investors, but it has to be claimed properly rather than assumed.
The federal rebate is 36% of the 5% federal portion of the HST, to a maximum of $6,300, phasing out between a $350,000 and a $450,000 purchase price. The Ontario rebate is 75% of the 8% provincial portion, to a maximum of $24,000, with no price ceiling.
Because the price was $450,000 or more. The federal rebate phases out completely at that point, while the Ontario rebate keeps applying at any price.
On most builder purchases, no — it is assigned to the builder and already reflected in the price. On an owner-built home, or where the assignment was not made, you claim it directly from the CRA.
The new housing rebate requires the home to be a primary place of residence for you or a close relation. If it is rented instead, the CRA can reassess and recover the rebate with interest. A separate new residential rental property rebate may be available, but it has to be claimed on its own terms.
Open your file tonight — a licensed Ontario lawyer will confirm your exact Land Transfer Tax and closing costs in writing.