What the New HST Rebate Means for Home Buyers and Builders

May 5
2 min read

Everyone loves a deal and that is what the Government is now offering to provide a much-needed boost to the housing market.

What is the new HST Rebate?

The proposed HST rebate applies to newly built homes and could result in savings of up to $130,000. This incentive is available for homes valued up to $1 million, with extended eligibility for homes priced as high as $1.5 million.

How Does the HST Rebate Work?

The rebate is designed to return the full 13% HST (8% provincial and 5% federal) on qualifying new home builds. Depending on how you approach your project, there are a couple of ways to benefit.

Some details are still being worked out between the Province of Ontario and the Federal Government to streamline how you will receive the full 13% HST (8% Provincial and 5% Federal portions).

If you are purchasing the land first and then hiring a designer and contractor or even doing some of that work yourself you can keep records of all your purchases and submit to the CRA to obtain the rebate, which will include the cost of the land as well as all material and labour costs.

For more information, visit the Federal or Provincial websites for the full rules and regulations.

Next Steps

If you’ve been thinking about a new home now is the time to purchase your land and get your builder lined up so you can take full advantage of these significant cost savings. Although you have until Dec 31, 2031 to complete the construction of your new home the deadline for having your plans in place is Mar. 31, 2027.

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