Question 1

How is HST calculated on a new home in Ontario?

Accepted Answer

New homes in Ontario carry 13% HST (5% federal GST + 8% Ontario provincial), but builder listed prices for owner-occupied homes already include a $24,000 rebate credit. Under Ontario’s 2026 Enhanced HST Rebate (APS signed April 1, 2026 to March 31, 2027), buyers receive full HST relief on homes up to $1 million pre-tax, a flat $130,000 maximum rebate up to $1.5 million, tapering to $24,000 at $1.85 million. Use a closing cost calculator to see your exact net HST.

Question 2

Do I qualify for the new home HST rebate in Ontario?

Accepted Answer

For the 2026 enhanced rebate: the home must be a new build purchased by an individual as the primary residence of the buyer or a close relation, and the Agreement of Purchase and Sale must be signed between April 1, 2026 and March 31, 2027. All buyers qualify — not just first-time buyers. Long-term rental investors have a parallel enhanced rental rebate with the same amounts, recovered by filing with CRA after the first qualifying tenant moves in.

Question 3

What closing costs should I budget for on a pre-construction home in Ontario?

Accepted Answer

Beyond the HST, expect: Ontario land transfer tax (and Toronto municipal LTT if applicable), Tarion warranty enrollment fee, development charges and educational levies, utility connection fees, legal fees ($1,500 to $3,000), and title insurance. Total closing costs typically run 3 to 5% of the purchase price on top of the deposit paid during construction.

Question 4

What is the difference between owner-occupied and investor HST on a new condo?

Accepted Answer

Owner-occupants can have their rebates credited by the builder at closing — under the 2026 enhanced package this can bring net HST to zero on homes up to $1 million pre-tax. Investors pay full HST at closing (the listed price plus the $24,000 that owner-occupied pricing embeds) and recover it through the New Residential Rental Property Rebate after their first qualifying long-term tenant moves in. The rental stream requires construction to begin between April 1, 2026 and March 31, 2027 (projects already under way on March 31, 2026 also qualify) and substantial completion by December 31, 2029 — confirm the HST language in your Agreement of Purchase and Sale.

Question 5

Are development charges included in the builder’s listed price?

Accepted Answer

Not always. Development charges (DCs) are fees municipalities levy on new construction to fund infrastructure. Some builders cap DC exposure in the APS; others pass through the full amount charged at closing. For pre-construction homes, DCs can range from roughly $20,000 to over $100,000 depending on the municipality and unit type. Always confirm the DC cap or pass-through clause with your lawyer before signing.

Question 6

Which price do I enter — the advertised price or the price on my APS cover?

Accepted Answer

Builders traditionally advertise owner-occupied prices with the existing $24,000 Ontario rebate already credited. Some newer agreements instead quote the price excluding HST on the APS cover and credit the assigned rebates on the Statement of Adjustments — the same economics, quoted differently. The calculator accepts either: choose “Advertised price” for a brochure or price-sheet figure, or “Price before HST” for the pre-HST figure from your APS. The equivalence is exact — advertised price = pre-HST price × 1.13 − $24,000.

Question 7

What first-time buyer HST rebates exist for new homes in Ontario?

Accepted Answer

Two programs: the federal First-Time Home Buyers’ GST Rebate (Bill C-4, up to $50,000) and Ontario’s matching provincial first-time-buyer rebate on the 8% part — both phasing out between $1 million and $1.5 million pre-tax (before HST) and unavailable at $1.5 million pre-tax and above. They apply to agreements signed March 20, 2025 through December 31, 2030, with construction started by the end of 2030 and substantially complete by the end of 2035. Inside the April 2026 – March 2027 enhanced-rebate window they coordinate with the Ontario package (combined relief tops out at the same $130,000); outside that window they can apply on their own.

Your real closing cost — before you sign.

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