Buying a newly built home in Ottawa can be exciting, but understanding the purchase price, HST and available rebates is an important part of making an informed decision.

Ontario has introduced temporary HST relief for eligible new homes, and some buyers may qualify for additional first-time home buyer rebates. The amount you may receive depends on the purchase, the applicable rebate programs and your individual eligibility.

Before signing an agreement of purchase and sale, take the time to understand how the builder is handling HST and rebates. Here are 10 questions worth asking.

1. Is HST included in the advertised purchase price?

Start by confirming exactly what the advertised price includes.

Ask the builder:

• Is the advertised price inclusive of HST?

• Does the price assume that I qualify for particular HST rebates?

• What would the purchase price be if I did not qualify for one or more of those rebates?

• Will the agreement clearly explain how HST and rebates are being handled?

Do not assume that the advertised price is the amount you will ultimately pay. Ask for a written breakdown so you understand the numbers before signing.

2. Which HST rebates or relief programs may apply to this purchase?

There are several HST rebate programs that may apply to a qualifying new home in Ontario. They have different eligibility requirements.

Depending on the purchase and your circumstances, these may include:

• Ontario Enhanced New Housing Rebate (ENHR): Temporary enhanced provincial HST relief for eligible new homes purchased from a builder during the applicable period.

• Ontario New Home Affordability Payment (ONHAP): A provincial payment that provides additional temporary relief on the federal portion of HST for eligible buyers who qualify for the applicable Ontario enhanced rebate.

• Federal First-Time Home Buyers' GST/HST Rebate: A federal rebate for eligible first-time home buyers purchasing qualifying new homes.

• Ontario First-Time Home Buyers' HST Rebate: An Ontario rebate for eligible first-time home buyers purchasing qualifying new homes.

These programs are not interchangeable, and not every buyer or purchase will qualify for each one.

Ask the builder which rebates have been included in the proposed price or statement of adjustments. You can also review eligibility with your real estate lawyer or a qualified tax professional.

3. Does the purchase agreement qualify based on the dates and other program requirements?

The temporary Ontario enhanced HST relief has specific timing requirements.

For qualifying purchases from a builder, the agreement generally must be entered into between April 1, 2026, and March 31, 2027. Other requirements apply, including construction deadlines and the intended use of the home.

Ask the builder:

• Does my agreement fall within the required purchase-date period?

• Does the builder expect the construction timeline to meet the program requirements?

• Are there any special considerations if this is an assignment purchase or the agreement is amended?

• What happens if the construction or closing timeline changes?

The date of an agreement is only one part of the eligibility test. Have your lawyer review the agreement and confirm how the program requirements apply to your particular purchase.

4. Do I need to live in the home to qualify?

Some new-home rebates are intended for homes used as the purchaser's or a qualifying relation's primary place of residence. Other rules may apply to rental properties.

Ask the builder:

• Does the rebate being applied for require me to occupy the home as my primary residence?

• Are there restrictions on renting the property?

• What happens if my plans change before or after closing?

• Are there additional requirements if more than one person is purchasing the home?

Be clear about how you intend to use the property. Do not assume that a rebate available to an owner-occupier will also apply to an investment or rental property.

5. What happens if I do not qualify for a rebate that has been included in the price?

This is one of the most important questions to ask.

A builder may include an anticipated rebate in the purchase price or credit it to you on closing. However, being offered a rebate credit does not automatically mean you qualify.

The Canada Revenue Agency states that buyers are responsible for ensuring they meet the eligibility requirements. If a buyer receives a rebate they are not entitled to, the buyer may have to repay it to the CRA.

There are also circumstances where the builder may be jointly and severally liable with the buyer. This applies where the builder knew, or ought to have known, that the buyer was not entitled to the rebate or that the amount credited was greater than the buyer's entitlement.

Ask the builder:

• What happens if my rebate application is denied or the amount is reduced?

• Could I be responsible for paying the difference?

• How will any outstanding amount be handled at closing?

• Is the rebate amount conditional on my meeting specific requirements?

Have your lawyer explain any clauses that make you responsible for repayment or additional costs.

6. Who applies for the rebates — the builder or the buyer?

The application process depends on how the builder handles the rebate.

If the builder pays or credits the applicable rebate to you, the builder generally submits the required application to the CRA after you and the builder complete the paperwork.

If the builder does not pay or credit the rebate, you may need to submit the application yourself.

Ask:

• Which rebates will the builder pay or credit?

• Which rebates, if any, will I need to claim myself?

• When will the applications be submitted?

• Will I receive copies of the completed forms and supporting documents?

Make sure the agreement and statement of adjustments clearly show which rebates have been credited. You should not submit a second claim for a rebate you have already received through the builder.

7. Which forms and documents will I need to complete?

For eligible new-home purchases from a builder, the CRA uses forms that include:

• Form GST190: GST/HST New Housing Rebate Application for Houses Purchased from a Builder.

• Form RC7190-ON: GST190 Ontario Rebate Schedule.

Other documents may be required depending on the rebate and application type.

If the builder is handling the rebate, you will generally complete the applicable paperwork with the builder, often around closing. The builder submits the application and required supporting documents to the CRA.

For ONHAP, the CRA can share the relevant information with the Province of Ontario if you provide the required consent. If you do not provide consent, you may need to give the required information directly to Ontario.

Ask the builder:

• Which forms will I be required to sign?

• When will I receive them?

• Who is responsible for submitting each application?

• Will I receive copies for my records?

Keep copies of your signed agreement, statement of adjustments, rebate forms and related correspondence.

8. How are upgrades, extras and other selections handled?

New-build purchases can include choices and additional costs beyond the base purchase price.

These may include:

• Flooring, cabinetry and countertop upgrades

• Appliance packages

• Structural changes or additional features

• Lot premiums

• Additional parking or storage, where applicable

Ask the builder how these items are documented in your agreement and how they will be reflected in the final purchase price, HST calculation and statement of adjustments.

Do not assume that every upgrade or extra changes your eligibility for a rebate or the applicable price threshold. The treatment can depend on the details of the purchase and the relevant tax rules.

Have your real estate lawyer review the agreement and explain any effect these additional items may have on your costs.

9. What other closing costs or adjustments should I budget for?

Beyond the purchase price and HST, there may be other costs associated with buying a new home. The amounts and types of charges can vary by builder, development and property.

Depending on the agreement, possible items to ask about include:

• Development charges or municipal levies

• Utility connection or installation charges

• Tarion enrolment fees

• Legal fees and disbursements

• Land transfer tax

• Adjustments for property taxes or other prepaid expenses

• Condominium-related fees or interim occupancy costs, if applicable

These charges do not apply in the same way to every purchase. Some may be included in the purchase price, capped, waived or payable separately.

Ask the builder for a written list of anticipated closing adjustments and any additional charges that could be payable. Have your lawyer review the agreement to identify which costs are fixed, which may change and whether any amounts are capped.

10. Has my lawyer reviewed the agreement before I sign?

A new-build purchase agreement can be lengthy and may contain important conditions about HST, rebates, closing costs, construction timelines, delays and adjustments.

Before signing, have a real estate lawyer experienced with new-build purchases review the agreement.

Ask your lawyer to help you understand:

• How the purchase price and HST are calculated

• Which rebates have been included or credited

• What happens if you are not eligible for a rebate

• Which closing costs and adjustments may apply

• Your responsibilities for completing rebate applications

• Any clauses that could create additional costs or obligations

It is much easier to ask questions and clarify the terms before signing than to discover unexpected costs later.

Your New-Build Buyer Checklist

Before signing your agreement of purchase and sale, make sure you have:

• Confirmed whether the advertised price includes HST.

• Asked which HST rebates have been included in the price.

• Reviewed the eligibility requirements for each rebate.

• Confirmed the agreement dates and other applicable program requirements.

• Understood any occupancy or rental restrictions.

• Asked what happens if a rebate is reduced or denied.

• Confirmed who is responsible for completing and submitting rebate applications.

• Asked for a written breakdown of anticipated closing costs and adjustments.

• Reviewed the agreement with a real estate lawyer before signing.

A Final Word

Buying a new build is an exciting milestone, but it is important to understand the financial details before committing to a purchase.

HST relief and rebate programs can make a meaningful difference for eligible buyers. However, the amount you may receive depends on the specific program requirements, the purchase agreement and your individual circumstances.

My advice is to ask questions early, get the details in writing and have your lawyer review the agreement before you sign. A little preparation can help you move forward with greater clarity and confidence.

If you are considering a new-build purchase in Ottawa and would like guidance as you explore your options, I would be happy to help you understand the real estate side of the process.

Shelley Snyder
Ottawa Realtor | Coldwell Banker Coburn Realty, Brokerage
Buyers • Sellers • Downsizers
613-854-4452
shelley@shelleysnyder.com

This article is for general information only and is not legal, tax or financial advice. HST rebate programs have detailed eligibility requirements and may change. Confirm your eligibility and the treatment of your specific purchase with the Canada Revenue Agency, the Government of Ontario and your qualified legal or tax professional.

Official Government Resources

• Canada Revenue Agency – Ontario Enhanced New Housing Rebate

• Canada Revenue Agency – Who Can Apply for the Ontario ENHR

• Canada Revenue Agency – How to Apply When You Purchase from a Builder

• Government of Ontario – Ontario New Home Affordability Payment

Buying your first home is an exciting milestone, but understanding the costs and available government programs can feel overwhelming.

The good news is that first-time home buyers in Ontario may qualify for several rebates and tax savings that can help make purchasing a home more affordable.

Some programs apply only to newly built homes, while another can help eligible buyers purchasing either a new build or a resale property.

If you're planning to buy your first home in Ottawa, here are three important programs to understand before you start your search.

1. Federal First-Time Home Buyers' GST/HST Rebate

The federal government introduced a First-Time Home Buyers' GST/HST Rebate to help eligible buyers purchasing or building a qualifying new home.

For buyers in Ontario, this rebate applies to the federal portion of the 13% HST.

How much could you receive?

Depending on the purchase price and eligibility, the rebate may provide:

• Up to $50,000 on a qualifying new home valued at $1 million or less.

• A reduced rebate on homes valued between $1 million and $1.5 million.

• No rebate on homes valued at $1.5 million or more.

The rebate applies to qualifying newly built or substantially renovated homes intended to be used as the buyer's primary place of residence. It does not apply to an ordinary resale home.

Who qualifies?

Generally, to qualify as a first-time home buyer under the federal program:

• You must be at least 18 years old.

• You must be a Canadian citizen or permanent resident.

• You must not have lived in a home that you or your spouse or common-law partner owned during the calendar year of the purchase or the previous four calendar years.

• Neither you nor your spouse or common-law partner can have previously received this first-time buyer rebate.

There are additional purchase, construction and occupancy requirements, so it is important to review the full eligibility criteria.

2. Ontario First-Time Home Buyers' HST Rebate

Ontario also offers a first-time home buyer rebate on the provincial portion of HST.

In Ontario, HST is 13%, made up of:

• 5% federal portion

• 8% provincial portion

The Ontario first-time home buyer rebate may provide up to $80,000 of the provincial portion of HST on an eligible new or substantially renovated home.

This is separate from the federal first-time home buyer rebate.

For qualifying homes valued at $1 million or less, eligible buyers may receive relief on the full provincial portion of HST, up to the $80,000 maximum. The amount is reduced for higher-priced homes, subject to the program rules.

Can you receive both the federal and Ontario first-time buyer rebates?

Yes. Eligible buyers may qualify for both programs.

For a qualifying new home valued at $1 million or less, the federal and Ontario first-time buyer rebates together may provide up to $130,000 in HST relief, subject to eligibility and the HST payable.

There is also an important point for buyers purchasing during Ontario's temporary new-home HST relief period.

Ontario's temporary Enhanced New Housing Rebate and New Home Affordability Payment are separate programs. The provincial rebates cannot simply be added together without considering the program limits, and the federal portion of the temporary payment may be reduced by another federal HST rebate the buyer is entitled to claim.

This is why it is important to have your builder and lawyer confirm how the rebates apply to your particular purchase.

3. Ontario First-Time Home Buyer Land Transfer Tax Refund

Unlike the HST rebates, Ontario's Land Transfer Tax (LTT) refund may apply to both newly built and resale homes.

When you purchase a property in Ontario, land transfer tax is generally payable when ownership is transferred.

Eligible first-time home buyers may receive a refund of up to $4,000.

For many buyers, this can reduce or eliminate the provincial land transfer tax payable, depending on the purchase price.

Who qualifies?

The Ontario Land Transfer Tax refund has its own eligibility rules, which are different from the federal and provincial HST programs.

Generally:

• You must be at least 18 years old.

• You must be a Canadian citizen or permanent resident.

• You must occupy the home as your principal residence within nine months of the transfer.

• You must never have owned an eligible home, or an interest in one, anywhere in the world.

• If you have a spouse, your spouse must not have owned an eligible home while you were spouses.

• Land Transfer tax applies to resale home and new build home.

One important distinction: the land transfer tax program generally uses a lifetime home-ownership test. This is different from the federal HST rebate, which looks at whether you or your spouse lived in a home you owned during the current or previous four calendar years.

The refund is generally claimed through the lawyer handling your purchase and registration.

New Build or Resale: Which Benefits Apply?

One of the most important things to understand is that the available programs depend on the type of home you purchase.

If you buy a qualifying new build:

You may be eligible for:

• Federal First-Time Home Buyers' GST/HST Rebate.

• Ontario First-Time Home Buyers' HST Rebate.

• Ontario Land Transfer Tax Refund.

• Other applicable new-home HST relief, depending on your eligibility and purchase agreement.

If you buy a resale home:

You may be eligible for:

• Ontario Land Transfer Tax Refund.

The federal and Ontario first-time home buyer HST rebates are for qualifying new or substantially renovated homes, not ordinary resale properties.

An Example: Buying Your First Home in Ottawa

Let's say Taylor is purchasing a newly built home in Ottawa for $850,000.

Taylor meets the first-time buyer eligibility requirements and intends to live in the home as a primary residence.

Depending on the purchase agreement, the HST payable and the applicable program rules, Taylor may qualify for:

• Federal first-time buyer HST rebate: up to $42,500, representing 5% of the $850,000 purchase price.

• Ontario first-time buyer HST rebate: up to $68,000, representing 8% of the purchase price.

• Potential combined HST relief: up to $110,500.

Taylor may also qualify for the Ontario Land Transfer Tax refund of up to $4,000.

This is an illustration of the potential benefits, not a guaranteed rebate calculation. The temporary Ontario programs and other applicable rebates may affect the final amounts, so the purchase agreement and eligibility should be reviewed carefully.

A Few Things to Do Before Buying Your First Home

Before signing an Agreement of Purchase and Sale, take time to understand the costs and benefits available to you.

Here are a few practical steps:

1. Confirm your eligibility. The federal HST rebate, Ontario HST rebate and Land Transfer Tax refund each have different requirements.

2. Understand the type of property. New builds and resale homes are treated differently for HST purposes.

3. Ask about builder pricing. Find out whether applicable rebates are included in the advertised purchase price or credited at closing.

4. Review the purchase agreement. Have your real estate lawyer review the HST provisions and rebate arrangements before signing.

5. Budget for closing costs. Remember that land transfer tax, legal fees, adjustments, moving expenses and other costs may still apply.

6. Keep your paperwork. Make sure you understand which applications and supporting documents are required.

Planning to Buy Your First Home in Ottawa?

Buying your first home involves more than finding the right property. Understanding your budget, the purchase process and the programs available to you can make a meaningful difference.

Whether you're considering a newly built home or a resale property, I can help you navigate the Ottawa market, understand the buying process and make informed decisions along the way.

If you're thinking about buying your first home in Ottawa, I'd be happy to help you get started.

Shelley Snyder
Ottawa Realtor | Coldwell Banker Coburn Realty, Brokerage
Buyers • Sellers • Downsizers
613-854-4452
shelley@shelleysnyder.com

Disclaimer: This article is for general informational purposes only and is not tax, legal or financial advice. Government rebate programs have specific eligibility requirements, dates and conditions. Rebate amounts are not guaranteed. Confirm your circumstances with the Canada Revenue Agency, the Ontario Ministry of Finance, your real estate lawyer and your tax professional before relying on any rebate.

Official government resources

• Canada Revenue Agency – First-Time Home Buyers' GST/HST Rebate

• Canada Revenue Agency – GST/HST New Housing Rebate Guide

• Ontario – Land Transfer Tax Refund for First-Time Home Buyers

• Ontario – New Home Affordability Payment