How Do I Find Out How Much HST I Have to Pay for my Preconstruction Investment Property?

How do you find out how much HST you will have to pay when you are using a new construction residence for anything other than a primary residence?
First, call us at HST Relief: Rebates and Loans for a free consultation about what expenses you can expect on closing of an investment property, including how much cash you need to have available to cover the portion of HST due (the HST Rebate amount) when the preconstruction property is not being used as a primary residence. Investors can then apply for the HST Rebate back from CRA after closing if they meet certain requirements (chielfy, having a 1 year lease).  Each circumstance and its eligibility for the HST rebate depend on many variables, such as who is moving in to the newly constructed condo, what circumstances the property was purchased under and how the property will be used, etc. Do not forfeit your right to the HST Rebate by not understanding CRA’s criteria to qualify for the HST Rebate. Instead of reading CRA’s 74 page manual, call HST Relief: Rebates & Loans and tell us about your real estate investment situation. Our consultation is free. If you are concerned about having enough liquid cash to cover the HST, HST Relief: Rebates & Loans offers loans in the form of bridge financing to cover the HST amount until we recover the rebate from CRA 45-60 days after closing. It is a very short term loan that ensures you will maintain your investment by closing the property successfully on time.
The HST amount due on closing for an investment condo is weighted based on the purchase price and ranges from $16,000 to $29,000 and depends on the original purchase price the investor agreed to in the Purchase Agreement. Remember that the amount of HST due on closing is the same as the HST rebate amount that you can file for after closing. To qualify for the rebate, you must have a 1 year lease in place with a renter.  There are other more specific criteria that are less often an issue, but still important to understand prior to closing.  Be very careful if you plan to put the new construction investment in a company name.  You must have the proper paperwork in place to still obtain the HST Rebate from CRA.   


If you’re searching online, be aware of many incorrect websites and information floating on the web. If you are interested in a reliable chart that gives approximate HST costs, check out Genworth’s site here. For more online reading, check out our clients’ FAQs with our team’s detailed answers posted here.


In addition to the HST amount due on closing, you will have other substantial closing costs. These generally include: Levies, development charges, an appraisal fee for your mortgage, lawyer’s fees and sometimes the taxes to be paid upfront. It’s not unlikely that a small condo investment will yield up to $15,000+ in closing costs outside of the portion of the HST that will also be due on closing if the property is not going to be used as your primary residence.

What is the HST on assignment real estate purchases

How is HST calculated for real estate assignment purchases in Ontario? Can I get a loan for the HST portion as part of my mortgage?


By HST Relief (Admin)

Great question, builders deal with assignments the same way as they view investment properties.  It is now your responsibility to come up with the funds to close.  Most builders deal with assignments the same way.  We are happy to file and/or lend depending on your needs.

Give us a call for a free consultation!
Jeffrey Lemos

Costs for the HST of new home rental investment property

My client is purchasing a new home from a builder.  What additional costs should they plan for?


By HST Relief (Admin)
Great question.  Usually your solicitor or real estate lawyer is a good person to explain all the costs associated with closing on an investment property.  When you are buying new construction, make sure to also be aware of the HST rebate portion that is due on closing if the property will not be used as a primary residence.
Here are some of the costs associated with buying new construction real estate:
- development fees
- levies
- land transfer tax - provincial and city (for Toronto)
- lawyer's fees
- sometimes the builder's solicitor will hold 1- 2 years of city taxes to be paid after closing
- HST Rebate portion due on closing
Call us to file to get your HST rebate back.  We can claim $17,000 - $29,000 back in HST that you have apid on your new construction investment property - whether it's a house, townhome or condo and whether it's in Toronto or elsewhere in the province of Ontario.  Give us a call now: 1.866.832.1990.
We also provide loans for the HST portion due on closing. The loan is paid off when we recover the HST rebate from CRA.  It essentially prevents you from having to pay CRA upfront.

When do I get back the HST paid on a new home?

I just signed for a new construction condo.  When do I pay the HST and when will I be able to reclaim the HST back through a government program?


By HST Relief (Admin)
You pay the HST due on closing and the day after closing, you are eligible to file for the HST Rebate to reclaim the portion of HST you paid on closing.
TO put together your rebate filing and reclaim your HST government rebate, please call us at HST Relief - 1.866.832.1990 or email us at

Who is responsible for the HST on new house in Ontario?

The article above really explains well how HST works for a new house or condo that has been purchased.  Thanks for the help, HST Relief.  I will be calling you for an HST loan and to file for my HST Rebate.

Exactly how much HST will I have to pay for my condo closing?

I have a condo that I purchased at High Park Residence by Daniels on Bloor Street West.  I got a great deal and paid 289,500 for it (small condo, yes!).  I guess I should start looking into how HST will work if I do not move into the condo when it is ready.  Is it possible for you to tell me exactly how much HST I will need to close this new condo as an investment property?


By HST Relief (Admin)
Exactly how much HST is already covered in your sticker price on the Purchase Agreement and how much will be due on closing if it's not used as a primary residence, depends on the builder.  The terms should be in the fine print of your Purchase Agreement.
However, most builders ask for the rebate able portion of HST on closing (or issue the HST New Housing Rebate if it will be used as your primary residence to credit you this amount).  For a condo that costs 289,500 you should expect to pay $21,500 in HST on the closing date.  Remember that you will have other major expenses tacked onto the purchase price at that time too including levies, development fees, land transfer tax and lawyer's fees.  If you need help with the HST amount due on closing, call us.  We offer HST loans that we issue on the short term until we file and recover your HST rebate from CRA.  1.866.832.1990

How much should I have ready to pay in HST?

I have a condo that I signed an APS for $341,900.  How much should I set aside to pay in HST?


By HST Relief (Admin)
If your new construction condo is not going to be your primary residence, but an investment property, then you should expect to pay about $25,350.00 in HST on the closing date.
Call us at 1.866.832.1990 to find out how to reclaim this HST paid on closing.

First Canadian Place • 100 King Street West • Suite 5700 • Toronto, ON • M5X 1C7

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