Generally, yes. HST generally applies to a new or substantially renovated home or condominium unit in Ontario. A qualifying rebate, assigned rebate or current relief measure may reduce the amount you ultimately bear, but the Agreement of Purchase and Sale controls how HST is presented and paid. Source: Ontario Fact Sheet.
Ontario’s HST rate is 13%, made up of a 5% federal portion and an 8% provincial portion. Your actual cash requirement depends on the property, price, intended use, contract wording, timing and rebate eligibility.
The short answer: new pre-construction homes and condos generally attract HST
GST/HST generally applies to taxable sales of new or substantially renovated housing. A builder generally collects and remits the tax on a taxable sale. The CRA’s home construction guidance explains the general rule.
A newly built detached home, townhome or condominium unit is normally treated differently from a previously owned resale property. CMHC states that buyers pay HST on new condominium units but not on previously owned units. It also notes that condominium fees themselves are not subject to HST and that eligible buyers may qualify for a new housing rebate.
The 13% calculation is a starting point, not necessarily your final out-of-pocket cost. Do not assume a rebate or credit until the contract and your eligibility have been reviewed.
First identify which HST payment path your contract uses
HST commonly appears through one of three practical contract paths:
| Path | Budget effect | What to verify |
|---|---|---|
| HST included in the stated price | The quote may include HST or assume an assigned rebate or builder credit. | Ask what “included” means and obtain the exact clause. |
| HST payable with an assigned or credited rebate | The agreement may show HST while applying an expected rebate against it. | Check the assumed rebate, eligibility conditions and repayment obligations. |
| Separate HST confirmation required | You may need more cash at closing than the headline price suggests. | Request an itemized estimate and have the agreement reviewed. |
A price list is not a complete purchase offer. Compare the base price with the unit-specific plan, deposit schedule, incentives, HST wording, rebate assignment language and complete financial commitment.
Ontario explains that HST and assigned new housing rebates can affect taxable consideration for land transfer tax, depending on the agreement between purchaser and vendor. Your lawyer should review the wording rather than relying on a sales representative’s shorthand explanation. Related reading: Pre-Construction Condo Guide: What Ontario Buyers Should Review Before Signing.
How your intended use changes the HST and rebate questions
| Buyer situation | Questions that matter | Do not assume |
|---|---|---|
| Personal residence | Will you or an eligible relation occupy the property as a primary residence? Does the agreement assign a rebate? | Personal occupancy eliminates HST. It may support rebate eligibility, but conditions still apply. |
| First-time buyer | Do you meet current federal first-time buyer conditions? | First-time status alone guarantees a full rebate. |
| Long-term rental or investment | Who will occupy the unit and which rental rules apply? | A primary-residence rebate automatically applies to an investment purchase. |
| Assignment seller or buyer | Who bears HST, rebate repayment risk, builder fees and other tax obligations? | An assignment preserves the original rebate assumption or creates a tax-free exit. |
Can you claim a rebate if you are not a first-time buyer?
Possibly. The GST/HST new housing rebate is not limited to first-time buyers. The CRA states that an individual may recover some GST or the federal part of HST paid for a new or substantially renovated home intended as the individual’s or a relation’s primary residence, if the required conditions are met.
First-time buyers may also qualify for a separate federal first-time home buyers’ GST/HST rebate. These are different analyses. First-time status is not a universal substitute for the ordinary new housing rebate rules.
Ontario’s temporary enhanced relief measures have their own eligibility and timing requirements. The Ontario New Home Affordability Payment describes relief through two components, while the 2026 budget backgrounder explains that the Ontario Enhanced New Housing Rebate depends on eligibility and when HST became payable. Treat these measures as conditional.
In practical terms, the applicable pathway depends on more than whether you are buying your first home. Confirm the purchase price and how it affects the available rebate, who will occupy the property, whether the Agreement of Purchase and Sale falls within the relevant timing rules, and whether the builder is assigning or crediting a rebate at closing. If the agreement assumes a rebate that you later cannot claim, the difference may become an amount you must fund or repay. The written agreement should identify the assumption and the consequences clearly.
- Start with the assumption that HST applies to a new or substantially renovated property.
- If you will occupy it, test the applicable new housing and Ontario relief conditions.
- If you are a first-time buyer, test the separate first-time buyer rules as well.
- If you intend to rent it, obtain advice on investment or rental treatment.
- If you plan to assign or sell soon after closing, review the possible tax and rebate consequences before acting.
When HST becomes payable on a pre-construction home or condo
HST timing is transaction-specific. For a condominium, interim occupancy, registration and final closing are separate milestones. Possession and title transfer do not necessarily occur on the same day.
| Stage | What to confirm |
|---|---|
| Agreement and deposits | Whether HST is included, extra, assigned or credited, and what rebate is assumed. |
| Construction | Whether your intended use, financing or eligibility facts have changed. |
| Interim occupancy | Whether any HST, occupancy charge or other amount is payable at possession. |
| Registration and final closing | What HST, rebate credit, adjustments and other funds are due when title transfers. |
| Rebate documentation | Who submits or assigns the rebate and who bears the risk if eligibility is rejected. |
Interim occupancy generally occurs before condominium registration and title transfer. Ask for a written breakdown of amounts due at occupancy and final closing instead of treating “occupancy” as a synonym for “closing.”
Calculate the starting HST exposure before applying any rebate
For an illustrative price explicitly stated before HST, multiply that tax-exclusive amount by 13%. Do not multiply an HST-inclusive or net-of-rebate advertised price by 13% and treat the result as the tax embedded in that price. Confirm the contract’s tax basis first:
Illustrative HST calculation = price before HST × 13%
These examples are hypothetical and do not predict eligibility or the amount payable under a particular agreement.
| Hypothetical price before HST | Starting calculation at 13% | What it does not decide |
|---|---|---|
| $600,000 | $78,000 | Whether HST is included or a rebate is assigned. |
| $800,000 | $104,000 | Whether the contract uses a net-of-rebate price. |
| $1,000,000 | $130,000 | Whether current relief conditions are met. |
A hypothetical condo priced at $800,000 before HST produces a gross HST calculation of $104,000 before any applicable rebate or credit. That does not necessarily mean you write a separate $104,000 cheque. The agreement may include HST, assign a rebate, apply a credit or require funding that is later recovered only if you qualify.
Build a closing-funds estimate that keeps HST separate
HST is only one line in a pre-construction closing budget. Deposits reduce the remaining purchase balance, but they do not automatically cover HST, land transfer tax, legal fees, adjustments or other charges.
- Purchase price: use the exact unit price, premiums, parking, locker and upgrades.
- Starting HST: record the gross 13% calculation separately.
- Expected rebate: record only an amount supported by the agreement and eligibility review.
- Deposits: list every instalment and payment date.
- Land transfer tax: obtain a project-specific estimate.
- Legal fees: include fees, registration and disbursements.
- Development charges and levies: check whether they are included, capped or payable as adjustments.
- Adjustments and upgrades: include utilities, maintenance adjustments, meters and final selections.
- Occupancy costs: separate interim occupancy charges from final closing funds.
- Reserve: allow for financing changes, moving costs, insurance and a cash buffer.
The Realty Bulls’ guidance on HST treatment on new builds places HST alongside development charges, legal fees, adjustments and other closing costs. That is the right way to compare projects.
What to verify if your plans change
If you later rent the property, assign the contract or sell soon after closing, do not assume the original rebate treatment remains unchanged.
Changing from occupancy to rental use
Review the agreement before changing use. A primary-residence analysis and a rental-property analysis involve different facts and may create repayment or reassessment risk.
Failing to qualify for an expected rebate
Budget for a reduced, delayed or unavailable credit. Check whether the agreement requires you to pay or repay an amount if the builder’s assumption is not accepted.
Assigning before closing
Review whether the original agreement permits an assignment and what approvals or documents it requires. Have an Ontario real estate lawyer and tax professional review the original and assignment agreements before relying on expected proceeds.
Document checklist
- Current unit-specific price list and availability confirmation.
- Complete Agreement of Purchase and Sale, schedules and addenda.
- HST wording stating whether tax is included, extra, assigned or credited.
- Assumed rebate amount, eligibility conditions and repayment language.
- Deposit schedule and record of deposits paid.
- Interim occupancy, final closing and outside dates.
- Intended-use declarations and occupancy requirements.
- Developer information sheet and disclosure materials, where applicable.
- Project-specific closing statement or itemized estimate.
- Written incentives, caps, levies, development charges and upgrade terms.
Have your lawyer review the full agreement and ask a qualified tax professional to assess any rebate, rental, assignment or resale issue. Confirming unexpected closing costs before signing is safer than correcting an assumption later.
FAQ: practical HST questions before signing or closing
Is HST paid at interim occupancy or final closing?
It depends on the agreement and applicable tax timing rules. Ask for a written statement showing the HST amount, credit or rebate assumption at each milestone.
Can a first-time buyer claim an HST rebate?
A first-time buyer may qualify if all current conditions are met, but first-time status alone does not guarantee a rebate. Price, occupancy, timing and other requirements also matter.
What if I planned to occupy the property but later rent it?
The change can affect the original rebate or credit. Review the agreement and obtain transaction-specific tax advice before renting.
Does an assignment change HST treatment?
It can. The assignment may change the parties, intended use, consideration and responsibility for taxes or credits. Review the original and assignment agreements together.
Is HST charged on condominium maintenance fees?
No. The CMHC Ontario fact sheet states that condominium fees are not subject to HST. Other purchase-related charges may have different treatment.
What should I ask if a price is advertised as HST-inclusive?
Ask whether it includes gross HST, assumes an assigned rebate, includes a builder credit or depends on eligibility. Request the clause, assumed rebate and amount payable if the rebate is denied.
Do I need an agent, lawyer or Tarion review?
Whether you use an agent is a separate decision from the HST analysis. A lawyer should review the purchase or assignment agreement, while a tax professional should assess HST and rebate consequences. Tarion and warranty protection are separate from HST and should be reviewed as part of the wider purchase.
Use the right documents before you commit
Start by confirming whether the contract amount is before HST, HST-inclusive or net of an assumed rebate. Use a 13% gross calculation only on a tax-exclusive base, then check intended use, rebate conditions and payment timing. Keep HST separate from deposits and other adjustments until the written agreement and qualified advisers support a more precise number.
The Realty Bulls helps buyers compare Ontario pre-construction homes and condos, including pricing, floor plans, availability and incentives. Your lawyer or tax professional should confirm the HST and rebate treatment for the specific purchase before you sign or complete it.