The Harmonized Sales Tax (HST) rebate on new condos in Ontario is basically the government giving you some of your tax money back after you buy a brand new home or a heavily renovated one. The rebate rules changed significantly in 2025 and 2026, opening new possibilities.
As a real estate professional who has guided over 40 pre-construction buyers through the rebate process in the past three years, I've broken down every current program, eligibility requirement, and deadline so you can claim every dollar you're owed.
Quick Summary
- Ontario’s Harmonized Sales Tax (HST) is 13% overall, made up of a 5% federal Goods and Services Tax (GST) and an 8% provincial component.
- I've seen buyers claim both the federal and provincial relief on the same purchase, though most don't realize that's even an option.
- Normally, you could get back up to $6,300 from the federal government and up to $24,000 from Ontario. In 2026 Ontario bumped that up, and if your home is worth up to $1 million, you could now get as much as $130,000 back.
- Ontario's enhanced HST rebate runs April 2026 to March 2027, while the federal first-time buyer expansion covers agreements signed after March 20, 2025 [1].
What Condos Does the HST Rebate Apply to in Ontario?
Ontario's 13% HST applies to newly built condos but not resale properties, which are fully exempt. On a $700,000 condo, that's $91,000 in tax, which is exactly why these rebate programs matter.
Since HST was introduced in July 2010, the programs have evolved significantly, with the biggest shake-up coming in 2025-2026. A key eligibility difference is that Ontario's 2026 HST rebate requires signing a purchase agreement between April 1, 2026, and March 31, 2027, plus meeting construction timelines, like completion by December 31, 2031, for primary residences.
Types of HST Rebates Available for New Condos
The total HST rebate amount will depend on when you bought and whether you're a first-time buyer. Here's a breakdown of every program currently available.
1. Standard GST/HST New Housing Rebate
The GST HST new housing rebate represents the baseline relief available to all eligible buyers purchasing a new condo as their principal residence or for a close family member [2].
Federal Rebate Component:
- Maximum federal rebate of approximately $6,300 for condos priced up to $350,000
- Rebate phases out between $350,000 and $450,000 purchase price
- No federal rebate available once condo price exceeds $450,000 under standard rules
Ontario Provincial Rebate Component:
- Maximum Ontario rebate of $24,000 (75% of the provincial portion of HST)
- Applies to the first $400,000 of the condo’s fair market value
- No phase-out threshold—remains available regardless of purchase price
2. Enhanced First-Time Home Buyers HST Rebate (2026-2027)
Following Royal Assent of Bill C-4 and Ontario’s March 2026 Budget announcement, first-time home buyers now have access to dramatically expanded HST relief.
Federal Portion (Bill C-4):
- Full 5% GST rebate on homes valued up to $1 million (potential savings of $50,000)
- Rebate phases out linearly between $1 million and $1.5 million
- No federal rebate once the purchase price exceeds $1.5 million
- Applies to purchase agreements signed on or after March 20, 2025
Ontario Portion (Enhanced Program):
- Full 8% provincial HST removed for condos up to $1 million
- Combined maximum rebate of $130,000 for eligible purchases
- Phase-down schedule: $1 million to $1.5 million (capped rebate), $1.5 million to $1.85 million (gradual reduction)
- Homes valued above $1.85 million revert to a legacy $24,000 maximum provincial rebate
Critical Timeline Requirements:
- The purchase agreement must be signed between April 1, 2026, and March 31, 2027
- Construction must begin by December 31, 2028
- Substantial completion required by December 31, 2031
3. New Residential Rental Property (NRRP) Rebate
Investors purchasing new condos for rental purposes cannot claim the standard new housing rebate, but may qualify for the residential rental property rebate under different eligibility requirements.
The NRRP rebate requires that the condo be used exclusively for long-term rental properties—not short-term lodging or personal use. Unlike the primary residence rebates, corporations and partnerships may claim the NRRP rebate.
Key differences for investment property purchases:
- Buyers must pay HST upfront at closing
- Rebate request filed directly to Canada Revenue Agency (CRA) after securing a tenant
- Completion deadline for enhanced NRRP eligibility: December 31, 2029
- Supporting documentation includes signed lease agreements and proof of rental use
- Eligibility Requirements for New Condo HST Rebates
Qualifications and Requirements
Not everyone who buys a new condo automatically qualifies for the rebate. There are specific boxes you need to tick around how you use the property, your buying history, and when you signed your purchase agreement.
Here's what the CRA and Ontario's program actually look for.
1. Primary Residence Requirements
To qualify for the HST new housing rebate, the condo must serve as your primary place of residence or that of a close family member. The CRA takes this requirement seriously and conducts audits to verify compliance.
Documentation Required:
- Proof of address change on driver’s license and health card
- Utility bills (hydro, gas, internet) in your name at the condo address
- Public records showing the address as your major residence
- Bank statements and employment records reflecting the condo address
CRA Verification Factors:
- Length of actual occupancy
- Whether you maintain another residence
- Where you receive mail and conduct daily activities
- Employment location relative to the property
Consequences of Misrepresentation: Incorrectly claiming primary residence status can result in full repayment of the rebate amount plus interest, penalties under the Excise Tax Act, and potential criminal charges for fraud.
The CRA actively investigates condo flipping schemes and false residence claims.
2. First-Time Home Buyer Qualifications
For the enhanced federal rebate under Bill C-4, you must meet specific first-time home buyer criteria:
- Age and Status: Must be 18+ years old and a Canadian citizen or permanent resident
- Ownership History: Neither you nor your common law partner owned a home in the preceding four calendar years
- Previous Claims: Cannot have claimed the First-Time Home Buyers’ rebate on a previous purchase
- Joint Ownership Rules: If purchasing with a spouse or common law partner, both parties must meet first-time buyer criteria for full eligibility
3. Property and Purchase Requirements
Qualifying Properties:
- Newly built condos purchased from a builder
- Substantially renovated condos (90%+ interior renovation)
- Pre-construction condo purchases where construction is completed
Exclusions:
- Resale condos (HST-exempt, no rebate applicable)
- Non-residential property or mixed-use units
- Secondary residences or vacation properties
- Properties purchased primarily for investment purposes under standard rebate rules
Purchase Agreement Timing:
- Federal enhanced rebate: Agreement signed on or after March 20, 2025
- Ontario enhanced rebate: Agreement signed between April 1, 2026, and March 31, 2027
- Builder assignment contracts qualify only if the original agreement met timing requirements
How Much HST Rebate Can You Get on Your New Condo?
How much HST rebate you can get on your new condo is determined by your home's value in the market, your eligibility status, and the date you signed your purchase agreement.
Here’s a comprehensive breakdown:
Enhanced all-buyer rebates require APS signed April 1, 2026 – March 31, 2027
Example Calculation:
- For a $700,000 Toronto condo purchased during the enhanced rebate period:
- Full 13% HST would equal $91,000
- Enhanced rebate removes full HST: $91,000 savings
- Compared to the legacy rebate of $24,000, you save an additional $67,000
Many builders include rebate assignment clauses in their purchase contracts, incorporating the anticipated rebate into the advertised price. Review your agreement carefully—if the builder assigned the legacy rebate but you qualify for the enhanced rebate, you may need to renegotiate, or the builder may capture the additional benefit.
How to Apply for the HST Rebate on a New Condo in Ontario?
Applying for the rebate isn't as intimidating as it sounds, but there are specific forms and steps depending on your situation. Sometimes your builder takes care of it at closing, other times you'll need to file yourself. Either way, here's exactly what to do.
1. Fill Out the Forms
You will need the following five primary application forms to apply:
- Form GST190: GST/HST New Housing HST rebate claim for Houses Purchased from a Builder—this is your main rebate application
- Form RC7190-WS: Calculation worksheet for determining rebate amounts—keep for your records
- Form RC7190-ON: Ontario New Housing Rebate schedule—required for claiming the provincial rebate
- Additional FTHB Forms: Enhanced rebate documentation as specified by CRA for Bill C-4 eligibility
- Form GST524: For NRRP rebate applications in residential rental property purchases.
Gather the following proving documentation before filing:
- Signed purchase contract showing sale price and closing date
- Statement of adjustments from closing
- Proof of major occupants (utility bills, address change confirmations)
- Copy of identification (driver’s license, passport
- Lease agreements for NRRP claims (if applicable)
2. Submit Your Filing
Go to CRA My Account to submit your rebate application electronically. This method typically results in faster processing times.
Alternatively, mail completed forms to the appropriate tax centre:
- Most Ontario applications: Sudbury Tax Centre
- Some specific situations: Prince Edward Island Tax Centre
Builder Assignment Process: Many buyers never file directly because builders assign the rebate at closing. In this scenario:
- Builder reduces the purchase price by the anticipated refund amount
- Builder files refund application on your behalf
- You sign the assignment documentation at closing
- Builder receives rebate payment from CRA
Processing Times:
- Standard applications: 2-6 months
- Complex applications or those selected for audit: up to six months or longer
- Peak filing periods may extend the timeline
Keep all documents for a minimum of six years after filing. The CRA may request verification at any point during this period.
Deadlines for the HST Rebate on New Condos in Ontario
You must file your refund application within two years of your condo closing date or the date of substantial completion. Missing the deadlines is no small thing. In most cases, you lose the rebate entirely, and there's no grace period.
If an honest mistake was made, there is a voluntary disclosure program that may offer some leniency. But if the rebate was already paid out and eligibility is later found to be invalid, you'll have to pay the full amount back, along with interest and penalties on top of that.
Common Scenarios and Special Considerations
Here's how the rebate rules apply across the most common situations I see in practice.
1. Multiple Buyers and Joint Ownership
When purchasing with others, refund eligibility becomes more complex. If one buyer doesn’t meet first-time buyer criteria, the enhanced federal refund may be reduced or eliminated.
However, the Ontario enhanced refund (for all buyers during the April 2026 – March 2027 window) remains available. The refund allows purchase for a close relative’s primary occupant.
Qualifying relations include:
- Spouse or common law partner
- Parents, children, siblings
- Excluded: aunts, uncles, cousins, friends
Only one person can file the refund application for a given property, even with multiple owners.
2. Condo Assignment and Pre-Construction Purchases
If you sell your builder contract to another buyer before closing, the rebate eligibility follows the original purchase agreement date. The assignment date doesn't reset the clock. Both you and the buyer you're assigning to must be able to demonstrate that primary residence was genuinely intended.
CRA actively investigates condo flipping schemes where buyers claim primary residence rebates on properties they never planned to live in. If you're assigning a contract, make sure you have thorough documentation showing your original intent to occupy the unit.
3. Rental and Investment Condos
Pay the full HST upfront when you close on the property, then find a tenant and sign them to a proper long-term lease. Once that's in place, you file your rebate application with CRA and attach the lease paperwork. After that, CRA sends the rebate money directly to you.
Unlike owner-occupied purchases, where builders often assign rebates at closing, rental property buyers must fund the full HST upfront. For a $700,000 condo, this means having an additional $91,000 available at closing, with rebate reimbursement arriving months later.
Given the complexity of NRRP claims and strict eligibility requirements, many investors work with tax professionals or specialized rebate services to ensure compliance and maximize their residential rental property rebate.
FAQs
1. Can I Claim the HST Rebate If I Bought a Pre-Construction Condo in 2024?
Whether you can claim the HST rebate on a 2024 pre-construction purchase depends on when you signed, not when construction finishes. Standard rebates cover 2024 agreements. Enhanced rebates require signing on or after March 20, 2025 (federal) or April 1, 2026 (Ontario).
2. What Happens If I Sell My Condo Within a Year of Purchase?
If you sell your condo within a year of purchase, CRA will scrutinize your primary residence claim. If you can't prove you genuinely intended to live there, you may have to repay the full rebate plus interest and penalties.
3. Does My Condo Qualify for the Enhanced First-Time Buyer Rebate?
Your condo qualifies for the enhanced first-time buyer rebate if you meet four conditions: neither you nor your partner owned a home in the past four years, you're a Canadian citizen or permanent resident, your agreement was signed within eligible windows, and construction meets required deadlines.
4. Can I Get Both Federal and Ontario Rebates on the Same Condo Purchase?
Yes, you can get both federal and Ontario rebates on the same condo purchase if you are eligible. Under the enhanced programs, that combination can reach up to $130,000 for condos valued up to $1 million.
5. What If My Builder Didn't Assign the Rebate to Reduce My Sale Price?
If your builder didn't assign the rebate at closing, you can still file directly with CRA using Form GST190 after closing. Make sure your documentation is in order and file within two years of your closing date.
References:
- https://news.ontario.ca/en/release/1007212/ontario-expanding-hst-rebate-to-lower-the-cost-of-new-homes-in-partnership-with-the-federal-government
- https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst190.html
