A major affordability measure affecting new home buyers in Canada is the hst rebate on a new condo. Starting with changes introduced in 2025 and moving into 2026, eligible purchasers can receive a significant reduction in tax costs when buying newly built condominiums. This rebate is designed to help first‑time buyers, support housing access, and ease the upfront financial burden that comes with purchasing new construction. Understanding who qualifies and how the rebate works can save thousands of dollars on your new property purchase.
What Is the Condo HST Rebate?
The hst rebate on a new condo refers to refundable amounts on the harmonized sales tax (HST) portion of the purchase price for newly built homes, including condominium units. At the federal level, this rebate stems from the expanded First‑Time Home Buyers’ GST rebate program, which eliminates or reduces the GST (or the federal portion of the HST) on qualifying new homes. Provincial rebates may further reduce the provincial portion of the HST in some areas.
This rebate doesn’t change the purchase price of the condo itself; instead, it offers relief on the tax component, effectively lowering the overall cost for eligible buyers. For example, first‑time buyers may recover up to $50,000 in federal tax relief, with provincial rebates adding further savings in certain provinces.
Who Qualifies as a Buyer?
To benefit from the hst rebate on a new condo, the “buyer” must meet specific criteria. These requirements ensure that the rebate targets individuals planning to live in their new property rather than investors or corporations. The key eligibility factors include:
- First‑Time Buyer Status: Generally, an individual must be at least 18 years old, a Canadian citizen or permanent resident, and must not have owned a home in Canada or abroad in the last four years. This aligns the rebate with other first‑time home buyer programs.
- Primary Residence Intent: The condo must be purchased for use as the buyer’s primary place of residence. Investment properties or vacation homes typically do not qualify.
- Agreement Timing: The rebate generally applies if the purchase agreement is entered into on or after the effective date set by federal legislation (e.g., May 27, 2025) and before a deadline such as 2031. The home’s construction must begin within that window and be substantially complete by a specified later date (often 2036).
If these conditions are met, eligible buyers can claim the hst rebate on a new condo either through their builder (credited at closing) or directly via a rebate application with the appropriate tax authority.
Types of Properties That Qualify
The hst rebate on a new condo mainly applies to newly constructed residential units that haven’t previously been occupied. Other eligible situations include:
- New Construction Purchased From a Builder: This is the most common scenario. A condo bought brand‑new directly from the developer is typically eligible for the rebate if all other criteria are met.
- Owner‑Built Homes: In some cases, individuals who build their own homes (including condos in owned or leased land arrangements) can qualify for the rebate, provided the residence is intended as a primary home.
- Co‑operative Units: Buying a share of a co‑operative housing corporation where HST has been paid can also qualify for the rebate when the unit will serve as your primary home.
Choices like assignment sales (reselling an agreement to buy before closing) may complicate eligibility, especially if the original purchase contract was signed before the effective rebate date.
How the HST Rebate Amount Works
The hst rebate on a new condo is scaled based on property value:
- Full Rebate for Homes up to $1 Million: Eligible buyers can receive up to a full rebate of the federal portion of HST (effectively eliminating federal tax) on properties valued up to $1 M.
- Partial Rebate for Homes Between $1 M and $1.5 M: For higher‑priced homes in this range, the rebate decreases on a sliding scale. For example, a $1.25 M home might qualify for a portion of the maximum rebate.
- No Rebate Above $1.5 M: Properties at or above this value generally do not qualify for the federal portion of the rebate.
Provincial components of the HST rebate may vary depending on where the condo is located, with some provinces offering additional relief on the provincial portion of HST under their own programs.
Claiming the Condo HST Rebate
Eligible buyers interested in the hst rebate on a new condo should be prepared to submit documentation to support their claim, including proof of purchase, evidence of primary residence intent, and rebate forms supplied by the tax authority. Builders may assist by applying the rebate at closing — often shown as a tax credit on your statement of adjustments.
It’s important to confirm whether the builder has already factored the rebate into the closing price, or whether you should apply directly after closing. Even when a rebate appears to have been applied at closing, some buyers choose to file directly to ensure they receive the maximum benefit.
Final Thoughts on Eligibility in 2026
Understanding who qualifies for the hst rebate on a new condo in 2026 can make a significant difference in your homebuying budget. First‑time buyers who plan to move into a newly constructed unit and meet the timing and residency criteria could save tens of thousands of dollars in tax costs. By familiarizing yourself with the eligibility requirements, property conditions, and rebate mechanics, you’ll be in a strong position to maximize your financial benefit when purchasing a new condo.