Do You Qualify for Up to $130,000 in HST Savings?

HST (Harmonized Sales Tax) is a 13% tax charged on most goods and services in Ontario, including newly built homes. It is not the same as property tax (annual) or land transfer tax (one-time at closing). On a $700K new condo, HST adds $91,000 to the cost. This rebate removes that tax for qualifying purchases.

Under existing CRA rules for the GST/HST New Housing Rebate, there is no Canadian citizenship requirement — permanent residents have historically been eligible. The 2026 expansion is expected to follow the same rules, but this has not been explicitly confirmed for the all-buyer program yet. You (or a blood/adoption relation) must intend to use the home as a primary residence or long-term rental. Confirm with your real estate lawyer.

No. The enhanced rebate is not retroactive. Only APS signed between April 1, 2026 and March 31, 2027 qualify. If you signed earlier, you're eligible for the pre-existing rebates (up to ~$24K provincial + ~$6.3K federal). See your options.

The provincial 8% is confirmed in the 2026 Ontario Budget. The full 13% requires federal cost-sharing via Excise Tax Act changes, which Ottawa has agreed to in principle but hasn't legislated. If only the provincial portion passes, the rebate would be approximately 8% instead of 13%. We'll update this page as legislation is finalized.

This is a real concern. However, with pre-construction sales down 86-89% in Toronto/Hamilton versus 10-year averages, builders are under significant pressure to move inventory. Working with an experienced realtor who specializes in pre-construction can help you negotiate effectively and identify builders offering genuine value.

Missing deadlines can disqualify the entire rebate with no grace period. Ontario's Finance Minister has explicitly stated the rebate is temporary and will not be extended. There are no statutory exceptions for construction delays — while a builder's contract may include "force majeure" clauses, these do not override CRA's hard legislative deadlines. Per CRA Guide RC4028, "substantially completed" means construction is at a stage (generally 90% or more) where an individual can reasonably inhabit the premises. Minor deficiencies like touch-up paint or baseboards do not prevent a home from being deemed complete. Choosing a builder with a documented track record of on-time delivery is critical.

Primary residence: In most GTA pre-construction purchases, builders include HST in the price and assign the rebate at closing. The builder submits forms GST190 and RC7190-ON to the CRA on your behalf — you pay less out of pocket on closing day. Important: if the builder enters insolvency before CRA processes the assigned rebate, you may be liable for the full HST. Review your APS for indemnity clauses. Rental/NRRP: The rebate generally cannot be assigned to the builder. You pay the full HST-inclusive price at closing, then self-file Form GST524 + RC7524-ON with the CRA for a refund. Filing deadline: You have 2 years from the date of closing/possession to submit your rebate claim.

Yes. The HST rebate is separate from and stackable with other programs. The First-Time Home Buyer Tax Credit provides a $1,500 non-refundable tax credit (based on a $10,000 amount at 15%). The Home Buyers' Plan lets you withdraw up to $60K from your RRSP (repayable over 15 years — this is a loan, not a grant). The Ontario land transfer tax rebate provides up to $4,000 for first-time buyers. Combined with the HST rebate, total benefits for a first-time buyer on a $700K condo: $91K (HST rebate) + $1,500 (FTHB credit) + $4,000 (LTT rebate) = approximately $96,500 in direct savings, plus access to $60K from your RRSP via HBP. Toronto buyers also qualify for the Municipal LTT rebate (up to $4,475), bringing the total to over $100K.

The CRA uses Fair Market Value (FMV) at the time of possession, not just the APS purchase price, to determine rebate eligibility. CRA reserves the right to request a professional appraisal to verify FMV. If the appraised value pushes your home into a higher phase-out tier (e.g., above $1.5M), the rebate can be clawed back or denied based on the appraisal, and you would need to cover the cash shortfall out of pocket. This is particularly relevant for pre-construction purchases where market values may shift between signing and closing.

The eligibility clock does not reset on an assignment. CRA bases qualification on the date the original builder contract (APS) was signed, not the date of the assignment. If the original APS was signed before April 1, 2026, the assignee does not qualify for the enhanced rebate, even if the assignment itself occurs after that date. Assignment sales also trigger a separate taxable event with their own HST implications — consult a tax professional.

Yes, but with tighter timelines. For owner-built homes, construction must begin between April 1, 2026 and March 31, 2027, and be substantially completed by December 31, 2029 (not 2031). Substantially renovated homes also qualify if at least 90% of the interior is removed or replaced (per CRA definition). Co-op housing shares and modular/manufactured homes purchased from a builder are also eligible.