How the Ontario HST Rebate Works on New Homes — And What The South Banks Towns Buyers Could Save

Buying a new home in Ontario means paying 13% HST — but rebate programs can return tens of thousands. Here's exactly how the math works for The South Banks Towns buyers at Lakeview Village.

By Karan Dhulla · 2026-02-16 · Buyer Guide · 7 min read

Understanding HST on New Homes in Ontario

When you purchase a newly built home in Ontario — like a townhome at The South Banks Towns in Lakeview Village — you pay 13% HST (Harmonized Sales Tax) on the purchase price. This breaks down as:

That's a significant amount — but the good news is that rebate programs exist to return a large portion of this tax to eligible buyers. And with The South Banks Towns priced from the high $700s, the savings are substantial.

The "True Base Price" — What Buyers Need to Know

Before calculating rebates, you need to understand a critical concept: builder-assigned rebates.

Most Ontario builders assign the existing $24,000 Ontario rebate to themselves at closing. This means:

  • The advertised price is actually the net price (after the rebate has been subtracted)
  • The true base price (before tax) is higher than you'd think

    • The Formula

    True Base Price = (Advertised Price + $24,000) ÷ 1.13

    Example for The South Banks Towns

    For an The South Banks Towns unit advertised at $600,000:

    The true base price is $552,212, and all rebate calculations use this number.

    Current Law Rebates (Available Now)

    These rebates are enacted law — available right now for any qualifying new home purchase.

    1. Federal GST/HST New Housing Rebate

    The federal government rebates 36% of the GST portion (5%), with a phase-out:

    For most The South Banks Towns buyers, the base price exceeds $450,000 — so the current federal rebate is $0.

    2. Ontario New Housing Rebate

    The province rebates 75% of the Ontario HST portion (8%), with a hard cap:

    This $24,000 cap kicks in at a base price of about $400,000. Every The South Banks Towns buyer qualifies for the full $24,000 Ontario rebate under current law.

    Proposed First-Time Buyer Rebates (Bill C-4 — 2025)

    For first-time home buyers with agreements signed on or after May 27, 2025, much more generous rebates are proposed:

    Federal FTHB GST Rebate

  • 100% of GST rebated (not just 36%)
  • Full rebate up to $1,000,000 true base price
  • Phase-out from $1M to $1.5M
  • Zero at $1.5M+

    • Ontario FTHB HST Rebate

  • 100% of Ontario HST rebated
  • Same $1M/$1.5M thresholds
  • Floor: Existing $24,000 rebate always applies (whichever is greater)

    • Real Savings for The South Banks Towns Buyers

    Let's calculate what a first-time buyer purchasing an The South Banks Towns unit at $600,000 could save:

    Current Law Rebates:

    Proposed FTHB Rebates:

    Summary: Savings at Different The South Banks Towns Price Points

    Stack Your Savings Even Further

    HST rebates are just one piece. First-time buyers at The South Banks Towns can combine with other programs:

  • Ontario Land Transfer Tax Refund — up to $4,000
  • Home Buyers' Plan (RRSP) — withdraw up to $60,000 tax-free for your down payment
  • First Home Savings Account (FHSA) — save up to $40,000 tax-free
  • Free parking included at The South Banks Towns — saving $50,000–$80,000 vs. other new builds

    • Key Takeaways for The South Banks Towns Buyers

    1. Every buyer gets $24,000 in Ontario HST rebates under current law

    2. First-time buyers could save $66,000–$95,000 under proposed enhanced rebates

    3. New construction only — resale homes don't qualify for HST rebates

    4. The South Banks Towns' price point from the high $700s maximizes the rebate benefits

    5. Always use the True Base Price — advertised prices include builder-assigned rebates

    Key pages

    Sales by Condo Circle — +1-289-400-0110 — Info@condocircle.ca. We do not represent the builder. Renderings are artist's concept. E.&O.E.