|Many new home buyers are interested in learning more about the HST on new homes and the provincial and federal rebates.
19th March, 2017
10th April, 2017
In 2010 the province of Ontario combined the GST and PST taxes into one harmonized payment known as the HST. Still many aren't aware how this tax may impact them when they purchase a new home.
HST is applicable on new construction homes and may already be included in the advertised price in Ontario. HST does not add to mortgage insurance premiums. However it may impact the qualification and submissions process with your mortgage lender.
In Ontario the HST rate on new construction housing is 13%. In response to the industry, the government offered a partial rebate of the provincial portion of the HST equal to 6% of the purchase price up to a maximum rebate of $24,000. This rebate is designed to reduce the impact of the tax on housing sold for a purchase price up to $400,000.
Homes above this rate still qualify for the maximum provincial rebate amount, but no more.
The federal government provides a 36% rebate on the first $350,000 of the purchase price. This rebate is phased out on a straight-line basis for homes priced between $350,000 to $450,000.
HST Rebates on New Home Purchase Prices in Ontario
For official rates, updates and specific information regarding the HST, please refer to the Canada Revenue Agency and/or the Ontario Ministry of Finance.
|Pre-HST Price||Ontario PST Rebate||GST Rebate||Total Rebates