Generally you pay HST when you purchase a new or substantially renovated property directly from a builder. If you’ve purchased a new home or condo but plan to live in it as your principal residence, the builder will typically claim the HST Rebate on your behalf. This is almost always the case when buying brand new condominiums directly from the builder. Things get a little tricky when buying substantially renovated units.

If the builder applies for the GST/HST new housing rebate on your behalf, the builder may pay the total amount of your new housing rebate directly to you or credit the amount against the total amount payable for the condo. They do this so that you do not have to individually apply to the CRA. Another reason this is done is to reduce the listed purchase price.

If the builder has applied on your behalf, you cannot make a second claim for this rebate. If you are unsure whether your builder has already applied, contact us and we’d be happy to help!