The HST New Housing Rebate program allows you to claim a rebate on part of the 13% HST you pay on the purchase price of either a newly constructed home or cost of building the home. Brand New homes in Ontario are charged 13% HST on their purchase, which consists of a 5% Federal tax and 8% Provincial tax.
You can claim a rebate on a newly renovated home, a purchase of a new mobile home, or when your home is destroyed in a fire and is subsequently rebuilt.
New home buyers can apply for a 36% rebate on the Federal portion of the HST of the purchase price to a maximum of $6,300 for homes costing $350,000 or less.
For new homes priced at $350,000 to $450,000 the rebate will be reduced proportionately. Homes priced over $450,000 would not receive a rebate on the Federal portion of the HST.
For the Provincial portion of the HST, new home buyers can apply for a 75% rebate applicable to the purchase price to a maximum of $24,000.