Canada GST/HST New Housing Rebate: The Complete Guide to Getting Your $5000+ Back

GST Rebate on New Homes
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Buying a new home in Canada is exciting. It feels like a dream come true. But let’s be honest — it’s also expensive. Between the down payment, closing costs, and moving expenses, the bills add up fast. And just when you think you’re done, there’s another big cost — GST or HST on your new home.

This tax alone can be thousands of dollars. For many Canadians, that feels like a heavy burden, especially first-time buyers.

Here’s the good news: the government offers a way to get some of that money back. It’s called the GST/HST New Housing Rebate. This rebate can put over $5,000 back in your pocket. And if you qualify, it’s money you don’t want to miss.

But here’s the problem. Many buyers don’t fully understand how the rebate works. Some even lose out because they miss deadlines or apply incorrectly.

That’s why I created this guide. I want to give you one clear, easy-to-read resource. In this article, I’ll explain what the rebate is, who qualifies, how much you can get, and how to apply.

Keep Reading.

What is the GST/HST New Housing Rebate in Canada?

So, what exactly is the Canada new home GST rebate?

In simple words, it’s a government program that lets you recover part of the tax you paid when buying or building a new home. When you buy a newly built house or condo, you pay either GST or HST, depending on your province.

  • GST (Goods and Services Tax): A 5% federal tax applied in most provinces.
  • HST (Harmonized Sales Tax): A combined tax in provinces like Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. HST includes both federal and provincial portions.

That means when you buy a new home, you’re paying thousands in tax. But the rebate helps you get part of it back.

The CRA (Canada Revenue Agency) designed this rebate to make homeownership more affordable. It applies to:

  • New homes purchased from a builder.
  • Substantially renovated homes.
  • New condos.
  • Owner-built homes.

So if you’re wondering about a GST rebate on new homes or a GST rebate for new homes, this is what it means. You get to recover some of the money you paid.

Think of it as the government giving you a break — a chance to lower your costs at one of the most expensive times of your life.

Who is Eligible for GST New Housing Rebate?

GST New Housing Rebate
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Now, let’s answer the most important question: Who is eligible for GST New Housing Rebate?

Not everyone qualifies. The Canada Revenue Agency (CRA) has set clear rules to determine who can claim this rebate. Let’s go through them one by one.

1. Type of Buyer

To qualify, you must be an individual. That means the rebate is only for people—not businesses, partnerships, or corporations.

If you’re buying the home for yourself or a close family member to live in, you may be eligible. But if you’re purchasing the home under a company name or as part of a business investment, the rebate likely won’t apply.

2. Primary Place of Residence

The home must be your primary place of residence, or that of an immediate family member (like a spouse, parent, or child).

You must plan to live in the home yourself—and actually move in within one year of the closing date.

This rule is strict. If you buy the property just to rent it out or flip it for profit, you usually don’t qualify. 

For example, even if you’re a first-time home buyer for the GST rebate, you won’t be eligible for the new GST rebate unless you live in the home.

3. Type of Property

You may qualify if the property fits into one of these categories:

  • A newly built home
  • A brand-new condo unit
  • A substantially renovated home (where at least 90% of the interior has been replaced)
  • A home you build yourself on land you own

Both detached homes and condos are included, provided they are new or have undergone significant renovation.

4. Purchase from a Builder

If you’re buying from a builder, the builder must be registered for GST/HST with the CRA.

In most cases, the builder includes the rebate in the purchase price and applies it on your behalf. You need to sign the necessary paperwork.

To be eligible for the GST rebate on new homes in Canada:

  • The home must be your (or a family member’s) main residence
  • You must be an individual (not a business)
  • The home must be new or substantially renovated
  • The builder must be GST/HST registered

If you meet all of these rules, you’re likely eligible for the rebate!

How the GST/HST Rebate is Calculated: How Much Can You Get?

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Okay, now let’s talk about the numbers. How much money can you actually get back from the GST/HST New Housing Rebate?

The rebate comes in two parts:

  • A federal GST rebate
  • A provincial HST rebate (only in provinces that charge HST, like Ontario)

Federal GST Rebate Calculation

Here’s how the federal rebate works:

If your new home costs $350,000 or less, you can get a rebate of 36% of the 5% federal GST you paid.

  • The maximum federal rebate is $6,300.

If your home costs between $350,000 and $450,000, the rebate is reduced on a sliding scale.

  • The more your home costs (within this range), the smaller the rebate.

If your home is priced over $450,000, you don’t qualify for the federal portion of the rebate.

Example:
If you buy a home for $300,000, you’d pay $15,000 in GST (5%).
36% of that is $5,400, so you could get back $5,400 as a federal rebate. But if your home costs $600,000, you get nothing federally.

Ontario HST Rebate (Provincial)

Let’s take Ontario as an example, where the HST is 13% (made up of 5% federal + 8% provincial).

Here’s how the provincial rebate works:

  • For homes priced at $350,000 to $400,000 or less, you can get 75% of the 8% provincial portion, up to $24,000.
  • For homes over $400,000, the maximum rebate stays at $24,000.

It doesn’t reduce like the federal one, but it doesn’t increase either. This applies to both houses and condos. So yes, the HST rebate for new condos works the same way as for detached homes.

Total Potential Savings

If your new home qualifies, you could get:

  • Up to $6,300 (federal rebate)
  • Up to $24,000 (Ontario provincial rebate)

That’s a total of up to $30,300 in rebates.

This is why the GST rebate for new homes is a big deal. It’s not just a small discount — it’s real money you can put toward:

  • Furniture
  • Renovations
  • Moving costs
  • Or savings

Every dollar counts when buying a home, and this rebate can give your budget some serious breathing room.

A Step-by-Step Guide: How to Apply for the New Home GST Rebate

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Now let’s talk about the process. How do you apply for the GST New Housing Rebate?

There are two common scenarios. Let’s go through them one by one.

Scenario 1: The Builder Applies for You (Most Common)

In most cases, the builder will handle the rebate for you. This makes the process easy and stress-free.

Here’s how it works:

  • When you buy a new home from a builder, the builder applies the rebate on your behalf.
  • The builder will reduce the purchase price right away by the amount of the rebate.
  • This means you don’t have to pay the full tax upfront; it’s already subtracted from the price.

For example:

If the home costs $400,000 plus HST, the builder will reduce the price by the amount of the rebate. The final price you pay will already reflect the rebate. Simple, right?

But remember, you must live in the home as your primary residence. If you tell the builder that the home is an investment property, they won’t apply for you.

The rebate only applies to homes that are lived in, not bought just for investment or resale.

Scenario 2: You Apply to the CRA Yourself

In some situations, the builder may not apply for the rebate, or maybe you built the home yourself. In this case, you need to apply directly to the Canada Revenue Agency (CRA). Don’t worry; it’s not too difficult. Here’s a step-by-step guide:

Step 1: Fill Out the Required Form

You will need to complete Form GST191 (Application for Rebate of GST/HST New Housing).

Step 2: Gather the Required Documents

You will need to provide a few supporting documents:

  • Agreement of Purchase and Sale (this proves you bought the home)
  • Bill of Sale (the official receipt for your purchase)
  • Proof of Payment (showing that you paid the GST/HST)
  • Proof of Occupancy (such as a utility bill or something that shows you live in the home)

Step 3: Mail Your Application

Once you’ve completed the form and gathered the necessary documents, mail everything to the CRA office listed on the form.

Step 4: Wait for the CRA to Review

After the CRA receives your application, it will review the information you’ve submitted. If everything is correct and you qualify, they will send you a cheque for your rebate.

Pro Tip: Double-Check Your Forms!

It’s always a good idea to double-check your forms and documents before submitting them. A small mistake could cause a delay in processing your rebate, sometimes by months.

Ontario, Canada’s most populated province, is home to vibrant cities like Toronto, Ottawa, and Mississauga. It offers diverse culture, strong job markets, great schools, and thriving real estate opportunities.

You can explore our comprehensive guide on obtaining a real estate license in Ontario to gain a deeper understanding of the market and make informed purchasing decisions.

Special Cases and Important Considerations

New GST Rebate
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Now, let’s cover some special cases you might come across when applying for the GST/HST New Housing Rebate. There are a few situations where the rules can be a little different.

The Rebate for New Rental Properties

If you’re an investor buying a property to rent out, you might still qualify for a rebate, but the process is slightly different.

This is called the New Residential Rental Property Rebate. Here’s how it works:

  • You can recover part of the HST you paid on a new rental property.
  • This rebate is not the same as the rebate for primary residences.
  • The rules vary depending on whether you’re buying a new home or building one for rental purposes.

So if you’re planning to rent out your new home, ensure to check the specifics of this rebate before applying.

GST/HST Rebate on New Condo Assignments

Assignments can be tricky when it comes to the GST/HST on a new condo purchase. In an assignment, you sell the condo before the final closing date (usually before you actually take possession). Here’s how it works:

  • The rebate typically goes to the end buyer, the one who actually takes possession of the property.
  • If you sell the condo as part of an assignment agreement, the original buyer may not be eligible to apply for the rebate; instead, it is passed to the final buyer.

This can be confusing, so it’s important to check your agreement to see who will be responsible for applying for the rebate.

What is a “Substantially Renovated” Home?

You might also be wondering what qualifies as a substantially renovated home. The CRA has specific guidelines for this.

Here’s the rule:

  • To qualify, 90% or more of the interior of the home must be replaced.
  • Cosmetic updates, like new paint or flooring, do not count.

For example, if you gut the entire interior of the house, replace all the walls, plumbing, wiring, and floors, you may qualify for the rebate.

If only minor updates were made (like changing a few appliances or repainting), the home is not considered substantially renovated, and you won’t qualify for the rebate.

Key Takeaways

In these special cases:

  • Investors can apply for a New Residential Rental Property Rebate.
  • Assignments often mean the rebate goes to the final buyer.
  • A substantially renovated home must meet the 90% rule to qualify.

These situations often confuse buyers, but the main takeaway is that the GST/HST new housing rebate on new construction applies as long as the property meets CRA requirements.Curious about how cities expand? Discover how sprawl in real estate impacts home prices, investment opportunities, and long-term growth. Our simple guide breaks down what urban sprawl means for homebuyers, investors, and future developments.

Frequently Asked Questions (FAQ)

1. How long does it take to get the rebate?

If you’re applying directly to the CRA, it usually takes about 2 to 6 months to process your application.
The timeline depends on:

  • How complete and accurate your application is
  • CRA processing times

If your builder applies for you, the rebate is applied instantly. You’ll see the savings reflected in your final purchase price, and you don’t need to wait for a cheque.

2. Can a non-resident of Canada claim the rebate?

No. The rebate is only for Canadian residents who are buying a home as their primary place of residence. If you are a non-resident or buying for investment purposes, you are not eligible for the new home GST rebate.

3. What if I bought the home as an investment first and decide to live in it later?

Unfortunately, if you bought the home as an investment, you likely don’t qualify for the rebate—even if you choose to move in later. The CRA looks at your intent at the time of purchase.

However, this is a grey area, and rules can vary, so it’s best to consult a tax professional for your specific situation.

4. Is there a time limit to apply for the rebate?

Yes. You must apply within two years of the closing date (when you take ownership of the home). If you miss the deadline, the CRA will not process your claim, even if you qualify.

Always apply on time. The rules are strict, and missing the window can mean losing out on thousands of dollars.

Looking to make the most of your rebate? Explore the best cities in Canada for real estate investment. Find out where your money can go further and where property values are on the rise.

Common Mistakes to Avoid When Applying

GST Rebate for First-Time Home Buyers
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Applying for the GST/HST New Housing Rebate can save you thousands of dollars—but only if you follow the rules carefully.
Here are some of the most common mistakes people make when applying:

1. Missing the Two-Year Deadline

This is one of the biggest mistakes. You must apply within two years of the closing date (or possession date, depending on the situation). If you miss this deadline, your application will be denied, even if you meet all the other requirements.

2. Not Understanding the Primary Residence Rule

To qualify, the home must be your primary place of residence (or that of a close family member). Buying the home as an investment or rental doesn’t qualify for the standard rebate.

Some buyers mistakenly think they can apply later if they move in—but that’s not always allowed.

3. Forgetting to Keep Proper Documentation

The CRA requires proof of purchase, payment, and occupancy.
This includes:

  • Purchase agreement
  • Final statement of adjustments
  • Proof of GST/HST paid
  • Utility bills or ID showing your address

Without proper documents, your application could be delayed or denied.

4. Filling Out the Wrong Forms

The correct form for most individuals is Form GST191. If you’re claiming the rebate for a rental property, you’ll need Form GST524 instead.
Using the wrong form can cause major delays.

5. Assuming Rental Properties Qualify the Same Way

Rental properties follow different rules. You may still get a rebate, but through the New Residential Rental Property Rebate program—not the regular one.

Avoid these common mistakes by carefully reading the CRA guidelines or speaking to a tax professional. Doing it right the first time saves you time, stress, and money.

When it comes to the GST rebate, timing is crucial. Missing the deadline could cost you thousands. Discover key dates and how real estate agent rules can impact your eligibility and chance to claim your rebate.

Conclusion

Buying a new home in Canada is a huge milestone. But it also comes with huge costs, including GST and HST. Thankfully, the GST/HST New Housing Rebate is there to help.

If you qualify, you can recover over $5,000 — sometimes much more. That’s money you can put toward moving costs, new furniture, or just building your savings.

In this guide, we covered:

Whether you’re a first-time home buyer, purchasing a new condo, or renovating a house, this rebate can make a real difference.

So don’t leave money on the table. Check your eligibility, gather your documents, and claim your HST rebate on Ontario new homes or federal GST rebate on new homes today.

Want to start your career in real estate? One of the most important decisions you’ll make is choosing the best brokerage firms for new real estate agents.

The company you join can have a big impact on your success as a new agent. The right brokerage gives you the training, support, and tools you need to grow your skills and close more deals.

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