Alan Zheng - Toronto Real Estate

HST New Housing Rebate

The HST New Housing Rebate package permits you to obtain a rebate on part of the HST that you paid on the purchase price of either a freshly built home or cost of constructing the home. You can get a rebate on a house that is freshly renovated, when buying a new mobile home, or if your house has been demolished in a fire and was rebuilt later on.

The purchase price of a freshly built home is subject to HST, while purchase price of resale houses are relieved from the HST.

New house shoppers can request for a 36% rebate onto the federal portion of the HST of the purchase price. The maximum amount they can get is $6,300 for houses that cost $350,000 or less. Fresh houses that are around $350,000 to $450,000, the rebate will be lowered proportionally. However, houses that cost more than $450,000 would not get a rebate on the federal portion of the HST.

When it comes to the provincial portion of the HST, new house owners can ask for a 75% rebate applicable to the purchase price of $24,000 maximum.