HST New Housing
Rebate Calculator.
Buying pre-construction in Ontario? Calculate your exact federal and provincial tax rebate instantly, and learn how to avoid the $24,000 "Investor Trap" on closing day.
HST Engine
Final Purchase Price (With Net HST)
$823,500
Builder Credit Applied
As this is your primary residence, the builder will typically assign the $24,000 rebate directly to themselves, meaning you only pay the "Net Price" on closing day.
The Recent HST Changes Explained
What the news headlines didn't tell you about the "Tax Free" new builds.
The Enhanced 100% Rebate (Purpose-Built Rentals)
Recently, the Federal Government (followed closely by the Ontario Provincial Government) announced the Enhanced GST/HST Rental Rebate. This effectively removes the full 13% HST on qualifying new housing.
The Catch: This does not apply to an individual investor buying a pre-construction condo to rent out. It strictly applies to "Purpose-Built Rental Housing." To qualify, the building must have at least 4 private apartment units (or 10 private rooms) and be held specifically as a long-term rental facility by the developer/owner.
The $24,000 "Investor Trap"
If you are buying a pre-construction home or condo from a builder, the price advertised is usually "HST Included." However, this assumes you will be living in the unit as your primary residence.
If you tell the builder (or your lawyer) that you plan to rent the unit out, you no longer qualify for the builder to credit the rebate upfront. On closing day, the builder will demand you pay the full HST (an unexpected ~$24,000+ cost).
The Solution: You must bring this cash to closing. Once the transaction closes, you sign a 1-year lease with a tenant, and your accountant will file the NRRP (New Residential Rental Property) Rebate with the CRA to get your ~$24,000 back. It usually takes 4-8 weeks to receive the check.
Rebate Intelligence
Clear answers for Canadian real estate investors.
What is the maximum HST New Housing Rebate in Ontario?
In Ontario, the maximum provincial portion of the rebate is capped at $24,000 (which represents 75% of the 8% PST on a $400,000 purchase). The federal GST rebate maxes out at $6,300 but phases out to zero for homes priced over $450,000.
Do investors have to pay HST on pre-construction condos?
Yes. If you are buying a new build as an investment property, you must pay the full 13% HST on closing day. However, you can apply for the NRRP (New Residential Rental Property) Rebate to get up to $24,000 back from the CRA after you sign a 1-year lease with a tenant.
Did the government cancel HST on new homes recently?
The federal and Ontario governments recently removed the full 13% HST (100% Enhanced GST/HST Rebate), but ONLY for qualifying 'Purpose-Built Rental' housing (like new apartment buildings). Standard pre-construction condos purchased by individual investors still follow the standard $24,000 NRRP rebate rules.
Can I claim the rebate if I assign the condo before closing?
No. To claim the New Housing Rebate or the NRRP Rebate, you must actually close on the property and take title. If you "flip" the contract via an Assignment Sale before the building registers, you do not qualify for the rebate (and may face capital gains/business income taxes on the profit).
Don't Close Blind.
Whether you need mortgage financing for your new build, or a legal partner to file your NRRP rebate, our ecosystem handles it all.
Request Closing Support
Ensure your rebates are filed correctly by our legal partners.