Buying a new home is exciting, but it comes with taxes. In Canada, when you buy a newly built home, you pay HST (Harmonized Sales Tax) or GST (Goods and Services Tax).
The good news?
You may be eligible for an HST/GST rebate, which will help you get some of that money back.
Let’s learn how to save money on your new home purchase.
What Is the HST/GST Rebate?
The HST/GST Rebate program allows homebuyers to recover part of the HST or GST paid on a newly built home.
This is also known as the New Homes Rebate or the Canada New Home Tax Rebate.
There are two types of rebates:
- Federal GST Rebate – Refund on the Goods and Services Tax (GST) portion.
- Provincial HST Rebate – Refund on the provincial part of the tax (where applicable, like in Ontario).
This rebate applies to:
- Buying a brand-new home from a builder.
- Building a home on land you own.
- Significant renovations that transform a home.
- Purchasing a new condo or townhouse.
How Much Can You Get Back?
The amount of rebate depends on the price of your home:
- Federal GST Rebate: 36% rebate if your home costs $350,000 or less.
- The rebate is reduced if your home is between $350,000 and $450,000.
- If your home is above $450,000, you don’t qualify for the federal GST rebate.
- Provincial HST Rebate: Varies by province (like Ontario New Home Rebate).
Who Is Eligible for the HST/GST Rebate?
To qualify for the HST Rebate Canada or GST Rebate Canada, you must:
- Buy a newly constructed home or build one yourself.
- Use the home as your primary residence (not for rental or investment).
- Be a first-time homebuyer or a repeat buyer.
How Can You Apply for the Rebate?
Applying for the New Housing Rebate is simple:
- Get the Correct Forms – Download and complete GST190 (for federal rebate) and any provincial forms if applicable.
- Submit the Forms – Send them to the Canada Revenue Agency (CRA).
- Wait for Processing – Receiving your refund can take weeks to months.
If you bought a new home from a builder, the builder may apply the rebate to the purchase price. Always check before using.
Imagine you buy a new home in Ontario for $400,000. The HST (13%) on this home would be $52,000.
- The Federal GST Rebate would be partial because the price is between $350,000 and $450,000.
- The Ontario HST Rebate would cover part of the provincial portion.
Ultimately, you could get back thousands of dollars through the rebate program. You can maximize your Home Buyer Tax Savings by utilizing available credits and deductions. These benefits can help reduce your tax liability, making homeownership more affordable.
Common Questions About the HST/GST Rebate
1. Do First-Time Homebuyers Get Extra Rebates?
No, the New Homes Rebate applies to all buyers, not just first-time homebuyers. However, first-time buyers can apply for the New Home Buyers Tax Credit, which provides extra tax savings.
2. Can I Claim the Rebate on a Rental Property?
If you’re buying for rental income, you can’t claim the New Housing Rebate, but you may qualify for the GST/HST New Housing Exemption under different conditions.
3. What if I sell my home soon after buying it?
If you sell too quickly, CRA might deny your rebate because the home was not your primary residence.
4. Can I Get a Rebate If I Buy a Pre-Construction Home?
Yes! The rebate applies if you’re purchasing a pre-construction home. Learn more about this process in our guide, what to expect during the pre-construction home buying process in Canada.
Why You Should Apply for the HST/GST Rebate?
Applying for the HST Rebate Canada can save you thousands of dollars. That money can go towards home improvements, furniture, or your mortgage.
Working with a professional real estate agent can help you navigate the rebate process if you plan to buy a new home.
Looking for expert guidance? Check out the best brokerage in Canada to find trusted professionals.
Final Thoughts
The Canada New Home Tax Rebate is a great way to get back some of the taxes you pay on a new home.
If you’re buying a home in 2025, check your rebate eligibility and apply to maximize your savings.
Do you need help with the process? Consult a real estate expert or a tax professional. Don’t leave money on the table—claim your HST/GST Rebate today!
