How New GST/HST Rebates Could Save Oakville Homebuyers up to $130,000
The PUSH to improve housing affordability of homebuyers across Ontario can be seen in the new HST rebates on newly built homes.
Recent federal and provincial initiatives have introduced expanded rebate programs to improve buying power of homebuyers. While these measures can provide meaningful savings, they are governed by specific eligibility criteria, timing requirements, and application processes. Understanding how these rebates operate is an important part of evaluating a new home purchase.
Understanding HST on New Homes
In Ontario, most newly built or substantially renovated homes are subject to 13% HST/GST Tax broken down into the 5% federal portion and 8% provincial portion.
Federal Rebate: Targeted Help for First-Time Buyers (Bill C-4)
The federal government offers a GST rebate specifically for first-time home buyers purchasing new homes.
- If the home is priced at $1 million or less, you may recover 100% of the 5% GST (up to $50,000).
- Between $1 million and $1.5 million, the rebate gradually decreases
- Homes priced over $1.5 million are not eligible
- Available for agreements signed between March 20, 2025 and December 31, 2030
- Maximum savings of $50,000.00
- Must be the first person to occupy the home after construction or substantial renovation is complete as your primary residence
- This rebate is intended to lower the barrier of entry for first-time buyers entering an increasingly competitive market.
The Expanded HST Rebate:
Ontario’s Temporary Time-Sensitive Rebate Opportunity
Ontario has introduced a temporary rebate on the 8% provincial portion of HST for a limited one-year period. Key features include:
- Available to all buyers (first-time homebuyers and repeat buyers)
- Applies to newly built or substantially renovated homes
- Must be used as a primary residence or a residential rental property
- Available for agreements signed between April 1, 2026 and March 31, 2027
- Construction must begin by December 31, 2028, and be substantially completed by December 31, 2031
- Eligible for a maximum savings of $130,000.00 through a federal-provincial cost-sharing agreement
The Combined Impact
- For first-time homebuyers these rebates are used together and buyers may effectively eliminate the full 13% HST on a new home. That calculates to potential maximum savings of $130,000.00.
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How Are These Rebates Claimed?
There are two main ways rebates are claimed:
1. Builder Credits the Rebate Upfront
- The builder reduces the purchase price by the estimated rebate amount
- You pay less at closing
- In exchange, you assign the rebate to the builder, who applies to the Canadian Revenue Agency (CRA)
- You pay the full HST upfront
- Then directly to the CRA for the rebate
- The government sends the rebate back to you at a later date
Important Notes:
- Applications must usually be submitted within 2 years of closing
- Supporting documents are required
- • Purchase Agreement
- • Proof of occupancy
- • Closing documents
- Errors or missed deadlines can delay or invalidate the rebate
What This Means for Oakville Buyers
In a market like Oakville, where prices often approach eligibility thresholds, these rebates can meaningfully influence both what and when you buy. For some this may shift the decision towards new construction over resale. For others, it may create an incentive to act within the limited provincial rebate window.
Final Thoughts
These rebate programs offer significant savings, but they also introduce complexity around eligibility, timing, and application.
At Lama Law, we assist clients in reviewing agreements, confirming rebate eligibility, and ensuring the process is handled correctly, whether the rebate is credited up front or claimed after closing.
