Your Guide To The New Housing GST / HST Rebate

What is the GST /H ST New Housing Rebate?

Buying a home is pricey enough – throw in the Goods and Service Tax (GST) or  Harmonized Sales Tax (HST) and it’s even more expensive.

The GST / HST New Housing Rebate is a way for someone to recover a part of the GST or the federal portion of the HST paid when buying a newly built home or one that was heavily renovated.

To qualify for the rebate, this property must be the person or a member of their family’s primary living space.

How Much Is The GST / HST New Housing Rebate?

The GST / HST New Housing Rebate is equal to 36% of the GST that individuals are paying on their brand-new home.

It is capped at $6,300 on homes with a fair market value equal to or less than $350,000.

The maximum allowable limit could be higher depending on the exact GST / HST rate you paid for your purchase.

You could still receive a partial credit if your home has a fair market value equal to or less than $450,000.

For provinces that pay HST like Ontario, PEI, Newfoundland and Labrador and New Brunswick, the 36% only applies to the federal GST portion of the HST.

Each province handles it a bit differently, so you may still qualify for province-specific rebates on the rest of the HST.

For example, in Ontario, homebuyers can claim an extra 75% on the provincial tax portion, regardless of the fair market value of the home, with a cap on the rebate.

The rebate will vary based on whether you paid the HST on the land during purchase.

The rebate in Ontario is limited to a maximum of $24,000 if HST was paid, and $16,080 if it wasn’t.

Home being built

GST / HST New Housing Rebate Eligibility

To qualify for a full or partial GST / HST New Housing Rebate, you must:

  • Have bought a brand-new or heavily renovated home from a builder, including housing on leased land (however, the lease must be for a minimum of 20 years or must offer you the option to buy the land) for use as your or a family member’s primary home
  • Bought shares in a co-operative home to use as your or a family member’s primary home
  • Built or hired someone to build or heavily renovate your own home to use as your or a family member’s primary home

Keep in mind that these homes can be mobile homes, modular homes, floating homes, condos, townhouses, semis, and singles.

If the home is owned or co-owned by a corporation or a partnership, it won’t be eligible for the GST / HST New Housing Rebate.

Key Insight

If you are planning to apply for the GST / HST New Housing Rebate, you must do it within 2 years of the closing date of the home, or within 2 years of the completion of construction, if it’s a renovation.

How To Claim The GST / HST New Housing Rebate

To claim the GST / HST New Housing Rebate, you will need to apply for it.

You can apply by filling out and submitting one form which shows your GST rebate calculation, and an application form.

Provinces that charge HST require another form as well.

The forms should be sent to one of the provincial tax centres.

Most of the time, no supporting documents are required with your application.

However, you may still need to give proof that you or a family member is living in the home, or you may need to submit some invoices.

Since the whole process is subject to audit, it may take up to 6 months for you to get your payment.

Make sure you keep all your original invoices, filled-out forms and any supplemental documentation for up to 6 years as per the CRA’s record-keeping policies.

Frequently Asked Questions

  • What is a HST rebate?
  • How much is the HST rebate in Ontario?

Tara Al-Khudairi is a freelance personal finance writer who has worked in the financial services industry since 2017. She graduated from McMaster University with a degree in Finance and is pursuing her CFA.

She has worked at a major Canadian financial institution in various client-facing advisory roles, starting as a bank teller and working up to a Client Services Associate within the Asset Management division. She specializes in simplifying concepts of personal finance for people of various financial backgrounds.

When she’s not examining the markets looking for the next SHOP.TO, she’s either practicing yoga, planning her next vacation, or has her nose buried deep in a book.