On July 2010, the Government introduced HST on New Condos at 13% payables at Final Closing. Harmonized sales tax (HST) combines both the 5 per cent federal goods and services tax (GST) and 8 per cent Ontario provincial sales tax (PST) into a single tax of 13 per cent.

Who Pays HST

All Buyers of New Homes and Condos need to pay HST.

If the Buyer is an End User, then at the time he is buying, the price already has the HST worked into the price. In this case at time of final closing the Buyer will complete documents saying this property is for his and his family private us. Buyers documents will contain a HST rebate form the Buyer will complete that will allow the Builder to claim the HST.

If the Buyer is Buying as an Investor, then the Buyer has to pay 13% HST at time of Final Closing. The Investor then has the opportunity to apply for a HST Rebate within the first 2 years of final closing. This rebate is based on calculations – the max amount being a rebate of $24,000.

To qualify for a HST rebate, you must lease the premises for a minimum of 1 year and provide that Lease together with the HST Rebate Application. It takes about 2 to 3 months to get the rebate.