How do I claim the HST rebate on a new home?

There are two routes, and which one you are on was decided when you signed your agreement, not by you later.

Route one: assigned to the builder (the common case)

If your agreement says the price is HST-inclusive and requires you to assign the rebate, which is most builder agreements in Ontario, then:

1. Your lawyer presents the rebate forms at closing.
2. You sign them, swearing that the home will be your primary place of residence.
3. The builder claims the rebate from CRA.
4. You receive nothing, because you already received it as a lower purchase price.

Your job here is narrow but important: make sure the forms match reality. You are swearing to occupancy. If your plans have changed, say so before you sign, not after.

Route two: you claim it yourself

If the rebate was not assigned, less common, but it happens where it was negotiated, or where the builder could not assign it, you file with CRA after closing:

• The federal and Ontario new housing rebate forms, filed together.
• Supporting documents: your agreement of purchase and sale, the statement of adjustments, proof of occupancy.
• Then you wait. Processing is not quick, and CRA does request further documentation on a meaningful share of claims.

Rental purchases always follow this route, with different forms.

What to confirm with your lawyer

Three specific questions, worth asking a week before closing rather than on the day:

1. Which route am I on? Assigned or self-claimed.
2. What rebate amount is being assumed, and which programs does it cover, federal, ENHR, and the 5% top-up?
3. Was the consent for the Ontario top-up included? This is the piece most often missed.

If you are unsure you qualify

Raise it before closing. If you sign the forms and CRA later disallows the claim, the builder’s indemnity clause means the money comes back out of your pocket, and by then you own the house and have no leverage. Up to $80,000 provincially and $50,000 federally is too much to leave to optimism.

Run an estimate first, then take it to your accountant.