Imagine walking into your lawyer's office to close on your first home, expecting to write a massive cheque - only to discover you're saving enough money to buy a luxury car. Or take that dream honeymoon. Or, let's be honest, just breathe a little easier knowing your down payment didn't drain every last penny from your accounts.

That's not a fantasy. It's what Canada's 13% HST rebate can do for first-time home buyers right now.

If you're shopping for a newly built home in Ontario, you could be eligible for up to $130,000 back in your pocket. And no, there's no catch - just smart planning and knowing how to claim what's rightfully yours.

Let's break down everything you need to know about this game-changing rebate, including how it works, who qualifies, and how to make sure you get every dollar you deserve.
 

WHAT EXACTLY IS THE 13% HST REBATE?
 

The 13% HST rebate is a combined federal and provincial tax relief program that refunds eligible buyers for the HST they pay on newly constructed homes.

Here's how it breaks down:

• Federal GST rebate: 5% of the purchase price

• Provincial HST rebate: 8% of the purchase price (in Ontario)

Together, these two rebates can save you a staggering amount of money. On a $1 million home in Ontario, that's $130,000 you're not leaving on the table.

This isn't some niche loophole - it's a legitimate program designed to make homeownership more accessible for Canadians. And frankly, if you're buying new construction, you'd be leaving serious money behind if you don't take advantage of it

.


 

WHY DID THE GOVERNMENT CREATE THIS REBATE?

Let's be real: housing in Canada is expensive. Painfully expensive. Between soaring home prices, climbing interest rates, and the general cost of living, getting into the market feels impossible for many first-time buyers.

The government introduced and expanded this rebate to:

• Lower the barrier to entry for first-time buyers trying to break into homeownership

• Stimulate housing construction by increasing demand for new builds

• Support the construction industry, which means more jobs for trades, developers, and local businesses

• Align federal and provincial policies so buyers get one powerful rebate instead of navigating multiple confusing programs

• Combat affordability challenges during times of economic uncertainty

In short, it's a win-win: you save money, builders stay busy, and the economy keeps moving.

WHO ACTUALLY QUALIFIES FOR THIS REBATE?

Before you start planning what to do with your $130,000, let's make sure you're eligible. The good news? The requirements are pretty straightforward.

You qualify if you meet these conditions:

• You're a first-time home buyer. Neither you, your spouse / common-law partner should have owned a home in the calendar year of the purchase or the preceding four years.

• You're buying a newly built or substantially renovated home. Resale homes don't count - this rebate is specifically for new construction.

• It's your primary residence. You're planning to live there, not flip it or rent it out (though there's a separate rebate for rental properties, which we'll touch on later).

• The home falls within price limits. The full rebate applies to homes up to $1 million. Between $1 million and $1.5 million, the rebate gradually phases out.

• Your Agreement of Purchase and Sale is signed during the eligible window. For Ontario, that window runs from May 27, 2025, through 2031.

If you check all those boxes, congratulations—you're in.

How Much Can You Actually Save?

Let's talk numbers, because this is where it gets exciting.

Example 1: $900,000 home
13% HST rebate = $117,000 saved

Example 2: $1,000,000 home
13% HST rebate = $130,000 saved

That's not a typo. We're talking six figures here. Money that can go toward furniture, renovations, or simply padding your emergency fund.

And here's the kicker: in Ontario, this is the largest HST relief the province has ever provided for new home buyers. Previous rebates maxed out or phased out much earlier, meaning buyers spending over $700,000 often lost most of their provincial rebate. Not anymore.

HOW DO YOU ACTUALLY CLAIM THIS REBATE?


 

Claiming your rebate isn't complicated, but it does require you to do two things:
 

Apply Under Both Programs
 

To get the full 13% back in Ontario, you need to apply for:

• Federal GST/HST New Housing Rebate (5%)

• Ontario Provincial New Housing Rebate (8%)

Together, these give you the complete 13% rebate.

Let Your Builder Handle It (Or File Yourself)

Most Ontario builders will deduct the rebate at closing. This means you never pay the full HST upfront - the rebate is credited directly on your statement of adjustments. Easy, painless, done.

If your builder doesn't apply the rebate on your behalf, don't panic. You can file directly through the Canada Revenue Agency (CRA) using:

• Form GST191 for the federal rebate

• ONT Schedule for the Ontario rebate

Your real estate lawyer can also file both at closing, which saves you from paying the full amount and waiting months for a refund.

BUILDER-APPLIED VS. BUYER-FILED: WHAT’S THE DIFFERENCE?

Builder-Applied:

The rebate is credited immediately on your statement of adjustments at closing. You pay less upfront, and everything is handled for you.

Buyer-Filed:

You pay the full HST at closing and claim the rebate afterward through the CRA. You'll get your money back, but it takes time—sometimes several months.

Bottom line? If your builder offers to apply the rebate for you, take them up on it. Why tie up tens of thousands of dollars while you wait for a government cheque?

HOW TO MAXIMIZE YOUR REBATE

Want to squeeze every last dollar out of this program? Here's how:

Buy at or below $1 million. This is the sweet spot for the maximum rebate. Once you cross into the $1M–$1.5M range, the rebate starts phasing out.

Confirm your first-time buyer status. Make sure neither you nor your partner has owned property before.

Purchase new construction. Resale homes won't qualify, no matter how recently they were built.

Sign your Agreement of Purchase and Sale within the eligible window. In Ontario, that means between May 27, 2025, and 2031. Work with your lawyer or builder early. Don't wait until closing day to figure out your rebate. Get the paperwork sorted well in advance.

Do you have any questions about today’s blog topic?  FYI, we not only sell resale homes, but have working relationships with new home builders throughout Durham Region and the rest of the GTA.  So, if you’d like to take advantage of this First-Time Home Buyers GST / HST Rebate Program, give me a call and let the Brian Kondo Real Estate Team help you find and purchase the new home of your dreams, along with a nice rebate cheque afterwards!

Thanks For Reading Today’s BLOG!

If you would like to see any of my previous blog posts, please click here.

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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