November 2022 - 15 min read
The GST/HST new housing rebate is a Canadian federal government program that offers a rebate on the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) for new homes. The rebate is available to homebuyers who purchase a new-build home, preconstruction, or who make substantial renovations to an existing home.
The new housing rebate is available if you are buying or building a new house, condo, mobile home, floating home, bed and breakfast or duplex to live in as your primary residence. To qualify, the home must be in Canada and:
- Be purchased from a builder registered with the GST/HST New Housing Rebate program
- Be an owner-built home, meaning it has never been lived in before (including by the builder)
If you are buying a resale home, you may still be eligible for a partial rebate if certain renovations have been made. The home must satisfy all the requirements below:
- Be your primary residence
- Located in Canada
- Have substantial renovation, with at least 90% of the interior removed or replaced
To apply for the rebate, you will need to complete and submit a form from the government website within 2 years after the construction date. On this form, you will need to provide information about yourself and your home.
You will also need to include a copy of your sales contract, a copy of your settlement statement, and other documents depending on your situation.
If you’re claiming a rebate for a new home that you bought from a builder, you may be able to have the builder apply for the rebate on your behalf. The CRA will review your application and notify you of their decision. If you are approved for the rebate, you will receive a cheque in the mail.
The new housing rebate is worth 36% of the GST or federal portion of the HST paid on a newly constructed home, up to a maximum of $6,300. The rebate is valid on homes that are considered fair to the market with a value of $350,000 or less. If you have purchased a home that is more than $350,000, you can still be eligible for partial federal rebates and provincial new housing rebates as well.
First-time home buyers may also be eligible for a separate, non-refundable tax credit that can be used to offset part of the costs of buying a home, such as legal fees and land transfer taxes. There are also other government benefits and programs you may be eligible for.
This material is for information purposes only and should not be construed as providing legal or tax advice. Reasonable efforts have been made to ensure its accuracy, but errors and omissions are possible. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which is subject to change. For individual circumstances, consult with your legal or tax professional. This information is provided by The Canada Life Assurance Company and is current as of June 2022.