Who qualifies for the GST/HST New Housing Rebate?

Generally, buyers of a newly built or substantially renovated home used as a primary place of residence, including people who build their own home. The rebate amount depends on the home's price.

Does the rebate apply to expensive homes?

The federal rebate phases out across roughly the $350,000 to $450,000 price range and is not available above that band. Provincial rebates, where offered, may use different thresholds.

How do I receive the rebate?

Builders often credit the rebate directly in the purchase price by having it assigned to them. Otherwise, including for self-builds and substantial renovations, you apply for it after the purchase or work is complete.

Mortgage Glossary

What is GST/HST New Housing Rebate?

The GST/HST New Housing Rebate is a federal rebate that returns part of the GST or federal portion of the HST paid on a newly built or substantially renovated home. It is meant to ease the tax cost of buying or building a new primary residence. The rebate phases out as the home's price rises, ending in the roughly $350,000 to $450,000 range federally.

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Quick answer

Also known as: new housing rebate, GST new housing rebate, HST new housing rebate

Key points

Returns part of the GST or federal portion of HST on a new or substantially renovated home.
Available for homes used as a primary place of residence.
The federal rebate phases out across roughly the $350,000 to $450,000 price range.
Some provinces offer their own additional new housing rebate.
Builders often credit the rebate in the price, or you can apply after closing.
Self-built and substantially renovated homes can also qualify.

GST/HST New Housing Rebate explained

When you buy a newly built home, build one yourself, or substantially renovate a home, GST or the federal portion of HST applies to the purchase or construction. The GST/HST New Housing Rebate refunds a portion of that tax for homes used as a primary place of residence, reducing the overall cost of a new build.

The federal rebate is largest on lower-priced homes and phases out across roughly the $350,000 to $450,000 price range, above which the federal rebate is no longer available. Some provinces offer their own additional new housing rebate, which may have different thresholds. Builders often credit the rebate directly in the purchase price, or buyers can apply for it after closing.

What a GST/HST New Housing Rebate is for

The rebate exists to soften the tax burden on new housing, encouraging construction and making newly built homes more affordable for buyers using them as their primary residence. By returning part of the GST/HST, it lowers the effective price of a new build and helps offset one of the larger closing-related costs on new construction.

How it can help you

Understanding the rebate helps you budget accurately for a new build, since whether the rebate is already credited in the price or claimed afterward affects your cash needs at closing. It also clarifies why prices on new homes are sometimes quoted net of the rebate. Lenderoo shops 40+ lenders for free, so you can line up financing that fits your true after-rebate cost.

When it comes up

The rebate comes into play when you buy a newly built condo or house from a builder. The builder may quote a price that already assumes the rebate is assigned to them, so you need to confirm whether you qualify and whether the rebate is built in. If you are building or substantially renovating yourself, you typically apply for the rebate after the work is done.

Example: Buying a new condo

Suppose you buy a newly built condo as your primary residence. GST or the federal portion of HST applies to the purchase, and the GST/HST New Housing Rebate can return part of that tax.

On a lower-priced home the federal rebate is at its largest, but it phases out across roughly the $350,000 to $450,000 range, so above that band the federal rebate no longer applies. Many builders credit the rebate directly in the price; if yours does not, you may apply for it after closing. A province may add its own separate rebate with different thresholds.

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Questions & answers

GST/HST New Housing Rebate: frequently asked questions

Common questions Canadians ask about gst/hst new housing rebate.

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