Buying a new home in Ontario? The Ontario HST Rebate for New Home Buyers (2025) can return up to $24,000 in federal and provincial tax savings — a major financial advantage for first-time and move-up buyers. Learn how to qualify, calculate your rebate, and apply correctly to avoid missing thousands in refunds.
If you’ve bought or plan to buy a newly built home or condo in Ontario, there’s some good news in 2025: you may qualify for the Ontario HST Rebate — a program that refunds a portion of the Harmonized Sales Tax (HST) you paid on your property.
With Ontario’s housing market still tight and prices hovering near record highs, this rebate could mean $16,000–$24,000 back in your pocket, depending on the home’s price and whether you buy as an end-user or an investor.
“Too many buyers overlook the HST rebate because they assume it’s automatic,” explains Sarah Moffat, a licensed mortgage broker in Toronto. “In reality, you have to meet specific residency and occupancy rules — and timing is everything.”
Let’s explore exactly how the Ontario HST Rebate 2025 works, who qualifies, and how to make sure you don’t miss this money-saving opportunity.
Ontario HST Rebate
The Ontario HST Rebate is a financial program that helps offset the 13% Harmonized Sales Tax (HST) applied to new homes.
When you buy a newly constructed property, part of the price includes HST — but since housing is considered an essential good, the federal and provincial governments let eligible buyers claim back a portion of that tax.
The rebate is divided into two parts:
- Federal HST Rebate (GST portion – 5%)
- Ontario Provincial Rebate (PST portion – 8%)
Overview – Ontario HST Rebate 2025
| Feature | Details |
|---|---|
| Program Name | Ontario New Housing HST Rebate |
| Administered By | Canada Revenue Agency (CRA) & Ontario Ministry of Finance |
| Rebate Type | Federal (GST) + Provincial (PST) refund on HST for new homes |
| Maximum Federal Rebate | Up to $6,300 |
| Maximum Ontario Rebate | Up to $24,000 |
| Eligibility | New home or condo purchase (primary residence) |
| Applicable Homes | Builder-purchased new homes, condos, owner-built homes, co-ops, mobile or modular homes |
| Application Deadline | Within 2 years of the final closing date |
| Form | GST190 (New Housing Rebate Application) |
Features and How It Works
The HST rebate is designed to reduce the financial burden of buying a brand-new property or substantially renovating an existing one.
You pay HST on your home purchase — but if you’re eligible, the builder may credit it upfront (known as an “assigned rebate”), or you can claim it later directly from the Canada Revenue Agency (CRA).
“If your builder factors the rebate into the sale price, you must occupy the home yourself,” notes David Chen, CPA and tax consultant. “If not, you may need to apply afterward — but you can still get the refund as long as you meet the conditions.”
Eligibility Rules for the Ontario HST Rebate 2025
Eligibility varies depending on how you purchased the property — directly from a builder or as an owner-built home. Below are the main qualifications:
1. For New Homes Purchased from a Builder
You qualify if:
- The home is newly constructed or substantially renovated;
- It will be your primary place of residence, or that of a close relative;
- The home is located in Ontario;
- HST was paid on the purchase price;
- The purchase is finalized and the property has closed.
2. For Owner-Built or Major Renovations
You qualify if:
- You built or substantially renovated your own home;
- You use the home as your principal residence;
- You paid HST on building materials or construction services.
3. For Investment Properties
Investors do not qualify for the standard HST New Housing Rebate but may qualify for the HST New Residential Rental Property Rebate (NRRPR) — available if you lease the property long-term.
How Much Can You Get Back?
The rebate amount depends on the purchase price of your home and whether you’re applying for both federal and provincial portions.
Federal GST Portion
- Full 36% rebate on the 5% GST, up to a maximum of $6,300, available for homes priced at $350,000 or less.
- Partial rebate for homes priced between $350,000 and $450,000.
- No rebate if the home costs more than $450,000.
Ontario PST Portion
- 75% rebate of the 8% provincial portion of HST, up to a maximum of $24,000.
- Applies to homes priced up to $350,000.
- Reduced rebate for homes between $350,000 and $500,000, then capped.
Rebate Calculations for 2025
| Home Purchase Price | Federal Rebate | Ontario Rebate | Total Refund Potential |
|---|---|---|---|
| $350,000 | $6,300 | $24,000 | $30,300 |
| $400,000 | $3,150 | $20,000 | $23,150 |
| $500,000 | $0 | $16,000 | $16,000 |
| $750,000 | $0 | $16,000 (capped) | $16,000 |
Applying for the HST Rebate
You can apply for the rebate through the Canada Revenue Agency (CRA) using the following process:
Step-by-Step Application Process
- Confirm Eligibility: Ensure the home is your primary residence or that of an immediate family member.
- Gather Documents:
- Agreement of Purchase and Sale
- Statement of Adjustments
- Proof of occupancy (utility bill, ID, etc.)
- HST paid receipts (if applicable)
- Complete CRA Forms:
- Use Form GST190 for the New Housing Rebate
- Attach Schedule A (Ontario Rebate)
- Submit Application:
- Mail to the CRA within 2 years from final closing or completion date.
- Wait for Processing:
- CRA typically processes applications within 8–12 weeks.
“Applying within the 2-year window is critical,” warns Janet DeSouza, Senior Tax Analyst. “If you miss the deadline, the CRA can reject your claim even if you qualify.”
Updates for 2025
While the rebate structure hasn’t changed dramatically, 2025 brought three important clarifications:
- Tighter verification: CRA now requires more documentation for occupancy proof.
- Digital filing support: You can now upload rebate forms through your CRA My Account.
- Provincial cap reaffirmed: Ontario’s maximum rebate remains $24,000, despite speculation it would rise with inflation.
Rebate vs. Builder Credit
| Scenario | Builder Applies Rebate | You Apply Directly |
|---|---|---|
| Eligibility | Must occupy as primary residence | Can apply if used as residence later |
| Upfront Discount | Yes, price reduced | No, you pay full HST and claim later |
| Timeline | Immediate savings at purchase | Refund received in 2–3 months |
| Risk | Builder may reclaim rebate if occupancy rules are broken | None, if CRA approves your claim |
Why the HST Rebate Matters in 2025?
With home prices still averaging $850,000+ in major Ontario cities, every rebate matters. The Ontario HST Rebate can:
- Offset legal and land transfer costs,
- Make down payments more manageable,
- Improve affordability for first-time home buyers.
“In today’s economy, $20,000 can cover closing costs, appliances, or your first year of property taxes,” says Michael Wright, Housing Policy Analyst at the Canadian Homeownership Forum. “It’s a game-changer for younger families entering the housing market.”
Common Mistakes to Avoid
- Missing the 2-year deadline after closing.
- Not living in the home — if you rent it out, you must apply under the rental rebate instead.
- Submitting incomplete forms — missing signatures or invoices delay processing.
- Assuming builders handle it automatically. Always confirm who’s applying on your behalf.
Why It Matters for First-Time Buyers?
For first-time home buyers facing high mortgage rates, this rebate offers a real financial cushion. It’s part of a growing suite of federal and provincial measures designed to promote housing access, including:
- First Home Savings Account (FHSA)
- Home Buyers’ Plan (HBP)
- GST/HST New Housing Rebates (nationwide)
Combining these programs can save tens of thousands of dollars when buying your first home.
Frequently Asked Questions
How much can I get back with the HST rebate in Ontario?
You can get up to $30,300 total — $6,300 federal and $24,000 provincial.
Can I claim the rebate if I rent my new home?
Not under the New Housing Rebate, but you may qualify for the New Residential Rental Property Rebate (NRRPR).
How long does it take to receive the rebate?
Typically 8–12 weeks after the CRA receives a complete application.
What if I bought a pre-construction condo?
You can still qualify. the rebate is based on your occupancy status and the HST included in the final closing price.
Can I combine the rebate with other programs?
Yes, you can combine it with FHSA savings, land transfer tax rebates, and first-time buyer incentives.
Is the rebate taxable?
No. The HST rebate is non-taxable and does not affect your annual income tax return.
