Buyer tool
HST rebate eligibility checklist
Work through four tests: is the home new and your primary residence, is your agreement signed inside the programme windows, do you pass the federal first-time buyer test including the spousal limb, and does your agreement assign the rebate to the builder. Failing the last two is what turns a rebate into a bill at closing.
Four tests decide whether you keep the money. Most buyers pass the first two without thinking and get caught on the third or fourth.
The one that catches people
The federal first-time buyer test is not “have you owned property.” It is whether you or your spouse have lived in a home either of you owned in the current calendar year or the four preceding ones.
So someone who has never owned anything, but who lives in their partner’s condo, is disqualified. And someone whose partner owns a rental neither of them has ever lived in may still qualify. The full trap.
Why failing is worse than missing out
If your price was quoted net of the rebate and you turn out not to qualify, you do not simply lose a benefit, the builder bills you the amount they had credited, at closing, in certified funds. Up to $80,000 provincially and $50,000 federally.
That is why “I think I qualify” is not good enough. Get it in writing before you waive anything.
Good news for move-up buyers
The Ontario Enhanced rebate has no first-time buyer test at all. If you have owned before, you are very likely still eligible for up to $80,000 plus the provincial top-up. A great many buyers write themselves off for no reason. Read this.
Run your numbers through the checker, then take the result to your accountant.
The checklist
23 items01 / 1. Is the home eligible?
- Newly built or substantially renovated, resale homes do not qualify
- Bought as an individual, not through a corporation
- You or a qualifying relation will be the FIRST occupant
- It will be your primary place of residence, not a rental or a second home
02 / 2. Is your agreement inside the windows?
- Ontario Enhanced rebate: agreement signed April 1, 2026 to March 31, 2027
- Federal first-time buyer rebate: agreement signed on or after March 20, 2025 and before January 1, 2031
- It is the SIGNING date that counts, not the closing date
- On an assignment: BOTH the original and the assignment agreement generally need to be inside the Ontario window
- An agreement re-dated into the window is deemed signed before it
03 / 3. The federal first-time buyer test
- At least 18, and a Canadian citizen or permanent resident
- You have not LIVED IN a home you owned in the current year or the four preceding calendar years
- Your spouse or common-law partner has not lived in a home THEY owned in that window
- The trap: if you lived in a home your partner owned, you are disqualified, even if you have never owned anything
- Ownership alone is not the disqualifier. Occupation of an owned home is
04 / 4. What your agreement does with the rebate
- Is the purchase price stated inclusive of HST?
- Does the agreement require you to assign the rebate to the builder?
- What rebate amount is the builder assuming? Get the figure in writing
- What is the indemnity if you do not qualify, and when is it payable?
- Is the Ontario affordability top-up consent included in the paperwork?
05 / 5. Before you close
- Eligibility confirmed in writing by your accountant, not assumed
- Your lawyer has identified the exact rebate clause and the indemnity
- You have budgeted the worst case, the price WITHOUT the rebate
- The rebate forms you sign at closing match your actual circumstances
Sources