GST/HST rebate
Recovering tax on a new build or major renovation
Buy a newly built home, build one, or substantially renovate one, and you may recover a meaningful slice of the GST/HST, but the rebate rules are price-sensitive and paperwork-heavy.
What you can claim
The federal portion
Up to 36% of the 5% GST, to a maximum of $6,300, on homes priced up to $350,000, phasing out completely at $450,000. At Greater Toronto Area prices, many buyers only qualify for the provincial portion.
The Ontario portion
Ontario rebates 75% of the provincial part of HST on the first $400,000 of the price, up to $24,000, and this one has no upper price cutoff, which is why it matters most in the Greater Toronto Area.
New rental housing
Investors buying new construction to rent out claim a parallel rebate (the NRRP) after closing with a one-year lease in place, commonly missed, and worth up to the same $24,000.
The catch
On most builder purchases the rebate is assigned to the builder and baked into the advertised price, sign the wrong occupancy declaration (for example, listing an investment property as owner-occupied) and the CRA can claw the entire rebate back with interest.
Before you sign a builder agreement, have us or your lawyer confirm exactly who is claiming the rebate and how you're declaring occupancy.
Program rules, limits and tax rates change. This guide is general information, not financial or legal advice, confirm the current numbers with us or your advisor before acting.
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