GST/HST New Housing Rebate: Maximize Your Tax Savings on New Home Purchases
Learn how to claim GST/HST new housing rebates and navigate complex eligibility requirements. Professional guidance on maximizing tax savings for new home buyers and builders.
Buying a New Home?
You may be eligible for significant GST/HST rebates that could save you thousands of dollars. Understanding the eligibility requirements and application process is crucial to maximize your savings.
Understanding GST/HST New Housing Rebates
The GST/HST New Housing Rebate is a partial refund of the GST or HST paid on the purchase of a new home or on a home you built or substantially renovated. This rebate can provide significant savings for eligible homebuyers and builders, but the rules are complex and the application process must be handled carefully.
Types of New Housing Rebates
Federal GST New Housing Rebate
Available across Canada for eligible new homes. Provides rebate of up to $6,300 for homes under $350,000.
Provincial HST New Housing Rebate
Available in HST provinces (ON, NB, NL, NS, PEI). Additional rebate on the provincial portion of HST.
Federal GST New Housing Rebate Eligibility
To qualify for the federal GST new housing rebate, you must meet all of the following criteria:
- The home is new or substantially renovated
- The home is for use as your or your relation's primary place of residence
- The fair market value of the home is less than $450,000
- You paid GST/HST on the purchase or construction
- You are not claiming the rebate for business purposes
Primary Residence Requirement
The home must be your primary place of residence. You or a relation must occupy the home as a primary residence. Investment properties or rental properties do not qualify for this rebate.
Rebate Calculation and Amounts
The GST new housing rebate amount depends on the fair market value of your home:
Federal GST Rebate Calculation:
Ontario HST New Housing Rebate
In Ontario, homebuyers may also be eligible for additional provincial HST rebates:
Ontario New Housing Rebate
- • Up to $24,000 for homes under $400,000
- • Partial rebate for homes $400,000 - $500,000
- • Must be primary residence
Ontario Land Transfer Tax Rebate
- • Up to $4,000 for first-time buyers
- • Applies to principal residence
- • Combined with federal rebates
Who Can Apply for the Rebate
The rebate can be claimed by different parties depending on the circumstances:
Purchaser of New Home
If you bought a new home from a builder, you can apply for the rebate directly
Builder/Contractor
Builders can apply for the rebate on behalf of purchasers and pass the savings to the buyer
Self-Builder
If you built your own home or hired contractors directly, you can apply for the rebate
Application Process and Requirements
Successfully claiming your new housing rebate requires careful attention to documentation and timing:
Required Documentation
- • Purchase agreement or building contract
- • Proof of GST/HST paid
- • Evidence of primary residence use
- • Fair market value appraisal (if required)
- • Completed rebate application forms
Application Timeline
- • Apply within 2 years of possession
- • Earlier application often results in faster processing
- • Builder applications may have different deadlines
- • Late applications may be rejected
Common Application Mistakes
- • Missing application deadlines
- • Inadequate documentation of primary residence use
- • Incorrect fair market value calculations
- • Failure to meet eligibility requirements
- • Incomplete application forms
Special Situations and Considerations
Substantial Renovations
Renovations that remove or replace substantially all of the interior may qualify. Professional assessment is often required to determine eligibility.
Cooperative Housing
Special rules apply to cooperative housing purchases. Both the cooperative and individual members may be eligible for rebates.
Mobile and Manufactured Homes
Mobile homes and manufactured homes may qualify if they meet specific requirements regarding foundation and permanent installation.
Maximize Your Housing Rebate
Don't leave money on the table. Our experienced tax professionals can help you navigate the complex rebate requirements and ensure you claim all eligible rebates. From application preparation to CRA correspondence, we handle the entire process.
Professional Assistance Benefits
Working with experienced tax professionals provides numerous advantages: