GST/HST New Housing Rebate in Canada: What Homebuyers Need to Know

Buying or building a new home? You may be eligible for a tax rebate through the federal government’s GST/HST New Housing Rebate—a program that helps Canadians recover some of the taxes paid on new or significantly renovated homes. Whether you're working with a builder or managing your construction, this rebate can put thousands back in your pocket.

What Is the New Housing Rebate?

This rebate allows you to recover a portion of the Goods and Services Tax (GST) or the federal part of the Harmonized Sales Tax (HST) on:

• New or substantially renovated homes purchased from a builder
• Owner-built homes or major renovations
• Shares in new cooperative housing units

The key condition: the home must be used as the primary residence by you or a close family member.

Who Qualifies and How Much Can You Claim?

You may qualify if:

• You bought a newly built or substantially renovated home
• You built or renovated your own home on land you own or lease
• You purchased a co-op unit for personal use

The amount you can claim depends on the fair market value (FMV) of the home:

• Under $350,000: Full rebate (36% of GST, up to $6,300)
• $350,000–$450,000: Partial rebate (gradually reduced)
• Over $450,000: No federal rebate

Provinces like Ontario and Nova Scotia offer additional rebates for the provincial portion of HST—eligibility and amounts vary.

Owner-Built Homes and Renovations

If you're building or renovating your own home:

• The completed value must be under $450,000
• You or a family member must be the first to live in it
• You must have paid GST/HST on materials and services

Substantial renovations mean 90% or more of the interior is replaced or removed.

Applying for the Rebate

To apply:

• Use Form GST190 if you bought from a builder
• Use Form GST191 if you built or renovated

Submit within 2 years of when the tax became payable (typically the closing or occupancy date), and keep all related documents like invoices and purchase agreements.

Bonus: New Rebate for First-Time Buyers

For homes purchased on or after May 27, 2025, new rules may allow first-time buyers to recover 100% of GST on homes up to $1 million, with reduced rebates up to $1.5 million.

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