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The Hidden Cost of a "New Home"
The Hidden Cost of a "New Home"
Buying a new home in Ontario? You may be paying a lot more tax than you think but the good news is, you might not have to.
If you're purchasing a newly built home, the federal and provincial governments offer substantial rebates on the GST and HST. These rebates are often overlooked or misunderstood, especially by first-time buyers. When the average HST on a $900,000 home is over $100,000, that kind of oversight can cost you thousands.
Two Main Rebates You Need to Know
Two Main Rebates You Need to Know
There’s the standard rebate that’s been around for years. If you’re buying a home to live in, it gives you back part of the HST. Most people qualify for up to $24,000 back on the Ontario portion. The federal rebate, however, only applies if your home is priced under $450,000 which rules out most new builds in Ontario.
Then there’s the new first-time home buyer rebate. Introduced in 2025, this one’s a game changer. If you’re a first-time buyer and you’re purchasing a newly built home, you could get a full refund of the 5 percent federal GST. That’s nearly $45,000. Add that to the Ontario rebate and you could be saving over $60,000.
But There’s a Catch
But There’s a Catch
Builders often assume you qualify for these rebates and build that assumption into your purchase price. If it turns out you don’t qualify, or if you miss a key document or deadline, you could be responsible for thousands more at closing.
And figuring out whether you qualify isn’t always obvious. It depends on your home ownership history, who will be on title, and whether you plan to live in the property or rent it out.
Let Us Handle the Complexity
Let Us Handle the Complexity
This is where we come in. At Counsel Direct, we review your agreement, confirm your eligibility, and calculate your rebate so there are no surprises. We coordinate with your builder and lender, and make sure all your paperwork is properly completed.
You don’t have to wade through confusing forms or hope you got it right. We’ll handle the details so you can focus on your move.
How Counsel Direct Makes It Easy
How Counsel Direct Makes It Easy
At Counsel Direct, we help Ontario home buyers navigate this process with clarity. We review your agreement, confirm your rebate eligibility, and ensure everything is set up properly so you don’t face any surprises on closing day. Whether you’re working with a builder or buying a pre-construction condo, we make sure your hard-earned money stays in your pocket.
Book Your Free Consultation Today
Book Your Free Consultation Today
If you’re buying a new home or thinking about it, let’s talk. We offer free consultations to help you understand your entitlements, avoid tax surprises, and keep your closing stress-free.
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