Education Centre

  • Buying a Property

    If you’re buying or building a new home, you have to pay GST on the purchase price. If you live in a province that has HST, you have to pay HST instead. When getting ready to buy, pay attention to whether or not the purchase price says if GST/HST is included or is payable. Every builder can list this differently, so make note of whether the purchase price is, for example, “$329,000 incl. HST” or “$329,000 + HST” – the difference is an extra $42,770 in Ontario (13% HST).

    GST/HST New Housing Rebate

    If your new home is priced at no more than $450,000 (before GST/HST), you may be eligible for a partial rebate of the 5% GST, so long as it is going to be your primary residence.

    The GST/HST New Housing Rebate amount you can receive changes proportionately, based on the purchase price of the home. For example, the rebate for homes valued at $350,000 or less reduces the GST paid from 5% to 3.5%. The rebate gradually reduces for homes in the $350,000 - $450,000 range and there is no rebate for homes over $450,000.

    To claim the rebate, you (the purchaser of the home) must include Form GST190 and file it with your personal income tax.

    To ensure you are making a well informed decision when it comes to the purchase of your new home, consider enlisting the services of an accounting firm or a firm that specializes in securing HST rebates on new homes.