Buying a newly built home in Canada often means paying GST or HST as part of the purchase price. Many buyers don’t realize that a GST/HST New Housing Rebate may allow them to recover a portion of that tax.

If you're purchasing a new property from a builder—such as a detached home, townhome, or condo—this rebate could reduce the effective cost of the home. Below is a detailed breakdown of how the program works, who qualifies, and how to apply.

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What Is the GST/HST New Housing Rebate?

The GST/HST New Housing Rebate allows individuals to recover part of the GST or federal portion of HST paid on a newly built or substantially renovated home purchased from a builder. 

The rebate applies to several housing types, including:

• Newly built houses

• Condominium units

• Duplexes

• Mobile or modular homes

• Floating homes

• Substantially renovated properties

The key requirement is that the home must be intended as the primary place of residence for the buyer or a close relative.

This rebate is designed to reduce the tax burden associated with purchasing new housing and improve affordability for homeowners.

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Who Is Eligible?

To qualify for the rebate when purchasing from a builder, several conditions must be met.

1. The Buyer Must Be an Individual

The rebate is only available to individuals, not corporations or partnerships. 

If multiple people purchase the property, they must all be individuals.

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2. The Home Must Be New or Substantially Renovated

The property must be:

• Newly constructed

• Substantially renovated

• Converted from a non-residential building into residential housing

These types of homes qualify because GST/HST applies to newly created housing supply.

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3. The Home Must Be a Primary Residence

When signing the purchase agreement, the buyer must intend to use the property as their primary place of residence, or for a close relative (such as a child or parent). 

Properties purchased purely as investment or rental properties generally do not qualify.

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4. The Home Must Be Purchased From a Builder

The rebate applies when the buyer purchases:

• The house and land from a builder

• A newly built condo from a developer

• A mobile or floating home from a manufacturer or builder

• Shares in a cooperative housing corporation tied to a new unit 

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How the Rebate Works

There are two typical scenarios when purchasing a new home from a builder.

Scenario 1: Builder Credits the Rebate

In many new-build transactions, the builder applies the rebate directly to the purchase price.

This means:

• The rebate is deducted from the price at closing.

• The buyer signs the rebate application.

• The builder submits the paperwork to the CRA.

This is the most common scenario in pre-construction homes.

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Scenario 2: Buyer Applies for the Rebate

If the builder does not credit the rebate, the buyer must apply directly to the Canada Revenue Agency.

In this case, the buyer must submit:

• Form GST190 — GST/HST New Housing Rebate Application

• A copy of the statement of adjustments

• Supporting documents related to the purchase agreement 

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Deadline to Claim the Rebate

If you need to file the rebate yourself, you must apply within:

Two years from the date ownership of the home is transferred to you.

Ownership generally refers to the legal title transfer on closing day.

Missing this deadline can result in losing eligibility for the rebate.

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What Documents Are Required?

When applying directly to the CRA, you will typically need:

• Form GST190 (rebate application)

• Statement of adjustments from your lawyer

• Purchase agreement or assignment documents (if applicable)

Providing complete documentation is important—missing documents can result in the rebate being denied.

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Important Note for First-Time Home Buyers

The federal government has proposed an additional First-Time Home Buyers GST/HST rebate designed to increase tax relief on newly built homes.

However, the details of that program are still subject to legislation and may change before full implementation. 

Buyers should confirm eligibility with their builder, lawyer, or accountant as the rules evolve.

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Common Situations That Qualify

Examples of homes that typically qualify for the rebate include:

• Buying a newly built detached home from a builder

• Purchasing a pre-construction condo from a developer

• Buying a new townhouse in a master-planned community

• Purchasing a newly manufactured mobile home

In each case, the home must be intended as a primary residence.

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Key Takeaways for New Home Buyers

If you're considering buying a new build, keep these points in mind:

 You may be able to recover part of the GST/HST paid on the home
 The property must be intended as a primary residence
 The rebate usually gets applied directly by the builder
 If not, you have two years after closing to apply
 Proper documentation is essential to avoid delays

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Final Thoughts

New construction homes often include GST in the purchase price, which can add tens of thousands of dollars to the cost. The GST/HST New Housing Rebate helps offset part of that tax burden and makes new homes more accessible to buyers.

If you’re planning to purchase a new home or pre-construction property, understanding how this rebate works can help you avoid surprises and potentially save thousands at closing.

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 Pro tip: Always confirm whether the purchase price already assumes the rebate. Many builder contracts include a clause requiring buyers to assign the rebate to the builder at closing