Short answer
A typical used owner-occupied home sold by an individual is usually exempt from GST/HST, but the result can change for builders, business transactions, substantial renovations, short-term rentals or mixed-use property.
The closing problem buyers face
A buyer assumes every property described as “resale” is HST-exempt, even though the seller renovated, operated it commercially or built it for sale.
What the official rule says
CRA says sales of used owner-occupied homes are usually exempt because the owner is generally not a builder. Tax status turns on the seller, property use and transaction—not the listing label alone.
What this does not guarantee
The realtor’s description and mortgage approval do not determine GST/HST. If the agreement says HST is “included” or “in addition,” the financial exposure can be very different.
A practical Ontario example
Illustration only: A normal family resale may be exempt, while a heavily renovated property sold by someone acting as a builder can require a different analysis despite looking like a resale.
What to do before the offer becomes firm
Have the lawyer review the HST clause and seller’s tax representations before conditions are waived. Keep a contingency until responsibility for any tax is clear.
- Which municipality and property type are involved?
- Who will be on title, and what are their citizenship, residency and ownership histories?
- Is the property resale, new, substantially renovated, rental, mixed-use or held by a business?
- Which taxes, rebates and adjustments has the lawyer confirmed in writing?
- How much verified cash remains after the deposit and every closing cost?
Rajiv’s broker perspective
A lender decides the mortgage amount under its credit, income, property and loan-to-value policies. The province, municipality, CRA and lawyer determine the applicable taxes and legal closing funds. Those are different decisions. I would calculate the full cash-to-close first, preserve a contingency and only then compare A-lender, alternative/B, MIC or private options if the complete borrower and property facts require another financing path. Borrowing a tax shortfall at the last minute can change debt ratios and approval.
Related: First-Time Buyer Rule Hub · Real Estate Centre · Updates & Rules Centre
Could closing costs change the mortgage plan?
Send Rajiv the price, municipality, property type, deposit, title holders and available closing cash. He can pressure-test the funds-to-close and identify the tax or legal questions that should be confirmed before you commit.