New homes in Ontario are subject to HST, and builders normally quote a price with the GST/HST new housing rebate already assigned to the builder, on the assumption that the purchaser or a relation will occupy the home as their primary place of residence. If you do not occupy it, the rebate can be denied and the amount becomes payable, so investors and buyers changing plans should get tax advice before signing. This is general information, not tax advice; confirm your situation with a tax professional and the CRA.
HST on new housing is a genuinely technical area, and the consequences of getting it wrong are measured in tens of thousands of dollars. Nothing on this page is tax or legal advice. Confirm your own situation with a CPA or tax lawyer and with the Canada Revenue Agency before you sign anything.
No HST-specific terms have been published for North Hill. Your agreement of purchase and sale will contain them.
North Hill townhomes start from the $700s and detached homes start from $999K, subject to change. In the standard Ontario structure, advertised builder prices are for an owner-occupier with the rebate baked in. Confirm this for your agreement — do not assume it.
The rescission period is the moment to get this right, because after that your obligations are fixed.
If you buy a new home and rent it to a tenant as their primary residence, you are generally outside the new housing rebate but may be eligible for the new residential rental property rebate, which you claim yourself from CRA after closing rather than assigning to the builder. Two consequences:
Model that cash flow before you sign. A rebate you receive in eight months does not pay a closing you have next month.
[] Does my agreement assume the rebate is assigned to the builder?
[] Exactly what does the agreement require me to certify about occupancy?
[] What happens, contractually, if I do not qualify at closing?
[] Is there a holdback or indemnity clause tied to rebate eligibility?
[] If I intend to rent, what is my HST cash requirement on closing, and what is the rebate path?
[] Is an assignment permitted, and what are the HST consequences if I assign?
[] Are upgrades and adjustments subject to HST separately from the base price?
That last one is often overlooked: HST can apply to upgrade and adjustment amounts in addition to the base price.
CRA rebate claims are evidence-based. Keep:
For an owner-occupier, HST on a new North Hill home will most likely be embedded in the builder's price with the rebate assigned to the builder — but that depends on your agreement, and it depends on you actually occupying the home. For investors and anyone whose plans might change, the exposure is real and the cash-flow timing is different. Get professional advice inside the rescission period, not after closing.
HST terms for North Hill have not been published. In the standard Ontario structure, builder prices include HST with the new housing rebate assigned to the builder on the assumption the purchaser will occupy the home. Confirm the treatment in your agreement.
The new housing rebate generally requires the purchaser or a qualifying relation to occupy the home as a primary residence. Investors may instead be eligible for the new residential rental property rebate, claimed from CRA after closing, which usually means funding the HST amount at closing.
HST can apply to upgrade and adjustment amounts in addition to the base price. Ask your lawyer to confirm how your agreement treats upgrades and closing adjustments.
No. This is general information only. Confirm your circumstances with a CPA or tax lawyer and with the Canada Revenue Agency before signing.