HST & GST rebates
What happens to my HST rebate above $1.5 million?
Above $1,500,000 the federal first-time buyer GST rebate is zero. The Ontario ENHR continues as a partial rebate up to $1,850,000, above which only the long-standing $24,000 Ontario new housing rebate remains. Two different cliffs at two different prices.
There are two separate price cliffs, and they are in different places. This matters a lot in markets like Oakville, King City, Kleinburg and Angus Glen, where new detached homes routinely clear both.
The federal cliff: $1,500,000
The federal first-time buyer GST rebate phases out on a straight line between $1,000,000 and $1,500,000. At $1,499,000 there is a small amount left. At $1,500,000 it is zero, and it stays zero.
The Ontario cliff: $1,850,000
The ENHR is more generous at the top end:
| Price | ENHR |
|---|---|
| Up to $1,000,000 | Full 8% |
| $1,000,000 – $1,500,000 | Flat $80,000 |
| $1,500,000 – $1,850,000 | Partial, declining |
| $1,850,000+ | Nothing, standard rebate only |
So a $1,700,000 home gets no federal rebate but still gets meaningful provincial relief. A $1,900,000 home drops to the $24,000 standard Ontario rebate and nothing else.
Where the cliffs actually bite
The practical problem in low-rise is that you often do not control which side of the line you land on. Base price is one thing; lot premiums and upgrades are another. A $1,450,000 base price with a $60,000 corner-lot premium and $40,000 of structural upgrades is a $1,550,000 purchase, and may have crossed a cliff that costs more than the upgrades did.
Whether a premium or upgrade counts toward the consideration for rebate purposes depends on how it is documented in the agreement. This is a question for your lawyer and accountant on your specific paperwork, not something to resolve from a web page, but it is a question worth asking before you select finishes, not after.
The practical advice
If your purchase is landing anywhere near $1,000,000, $1,500,000 or $1,850,000, model the rebate at your all-in price including premiums and upgrades, not at the base price on the price list. The checker will show you which band you are in, and a conversation before you finalise your selections is cheaper than one after.
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