# HST New Home Rebates

No HST is payable on the purchase price of a resale home.

According to CRA a resale home is defined as, "The sale of housing that has been previously occupied by an individual as a place of residence and that is exempt from GST would also be exempt for purposes of the HST."

HST at 13% is payable on the purchase of a new home or a substantially renovated home with rebates available from both the Provincial and Federal portions.

Rebates

Qualifying housing would include newly constructed and substantially renovated housing, co-operative housing, owner-built housing, mobile homes, floating homes and housing on leased land.

1. Provincial Rebate Portion: You are entitled to claim up to a maximum rebate of \$24,000 for the Provincial portion of the HST, provided the home is a primary place of residence of the buyer or the buyer's relation. That's equal to 75% of the Provincial portion to the \$24,000 maximum.

This rebate reduces the provincial part of the HST to a rate of 2% on the first \$400,000 of the purchase price. Homes above \$400,000 continue to qualify for the maximum \$24,000 rebate.
2.  Federal Rebate Portion: You are also be entitled to claim a rebate for the Federal portion of the HST on meeting the conditions for the GST new housing rebate.
Homes priced at \$450,000 or more do not qualify for the GST (Federal portion) new housing rebate.

The GST new housing rebate is equal to 36% of total GST paid on new home prices up to \$350,000.
Example:
\$300,000 x 5% GST = \$15,000 x 36% = \$5,400 rebate
\$350,000 x 5% GST = \$17,500 x 36% = \$6,300 rebate (\$6,300 is the maximum GST rebate)

For prices between \$350,000 and \$450,000, the rebate is calculated on a sliding scale.
Calculation: [(\$450,000 - New Home Price) ÷ \$100,000] x \$6,300 = GST Rebate
Example:
Price of new home is \$400,000
[(\$450,000 - \$400,000) ÷ \$100,000] x \$6,300 = \$3,150 GST Rebate

No GST rebate applies to homes above \$450,000.