Buying or building a new home in Canada comes with a significant upfront tax cost — GST or HST on top of an already steep purchase price. What many buyers do not realise is that the federal government, and several provinces, offer a partial refund on that tax through the GST/HST New Housing Rebate. Depending on your situation, you could recover up to $6,300 on the federal side alone, and thousands more provincially. Here is everything you need to know to claim what you are owed.
The GST/HST New Housing Rebate is a CRA program that refunds a portion of the GST or HST you paid on the purchase or construction of a qualifying new home. It is not a tax credit against income — it is a direct rebate of sales tax already paid, which means it puts real dollars back in your pocket at or after closing.
The rebate applies to four main scenarios:
In every case, the home must be your principal place of residence, or the principal residence of a close relation such as a parent, child, or sibling. If the property is being rented out, a separate program applies — more on that below.
The federal rebate is calculated as 36% of the GST paid on the home. Because GST is 5%, the math works out cleanly on a home at or below $350,000:
Maximum federal rebate = $350,000 × 5% × 36% = $6,300
Once your purchase price climbs above $350,000, the rebate begins to phase out gradually. Between $350,000 and $450,000, the CRA uses this formula:
Rebate = ($450,000 − purchase price) ÷ $100,000 × $6,300
So on a $400,000 home: ($450,000 − $400,000) ÷ $100,000 × $6,300 = $3,150. On a $425,000 home: $1,575. Once the purchase price reaches $450,000, the federal rebate disappears entirely. There is no federal rebate on homes priced at $450,000 or more.
This threshold applies to the full purchase price, including any upgrades included in the agreement of purchase and sale. It is worth running the numbers carefully — our Swift GST rebate calculator can do this instantly for your specific situation.
In provinces that have harmonised their provincial sales tax with the federal GST into a single HST — Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island — the same federal thresholds apply to the federal portion of the HST. The GST/HST rebate is calculated on the 5% federal component of the HST, not on the full HST rate. Each province also has its own rebate for the provincial portion, which we cover next.
The provincial component of the HST rebate is separate from the federal calculation and has its own rules. Ontario's program is notably generous:
Ontario provincial rebate = 75% of the provincial HST portion, up to a maximum of $24,000
Ontario's provincial HST rate is 8%, so on a home up to $400,000: $400,000 × 8% × 75% = $24,000. Critically, Ontario's provincial rebate does not have the same phase-out as the federal rebate. For homes over $400,000, the provincial rebate remains capped at $24,000 but does not reduce. This means an Ontario buyer purchasing a $500,000 new home gets no federal rebate but still receives the full $24,000 provincial rebate — a meaningful offset.
Other HST provinces have their own provincial rebates with varying rates and eligibility rules. If you are purchasing in Nova Scotia, New Brunswick, Newfoundland, or PEI, confirm the specific provincial thresholds with CRA or with an accountant.
Alberta does not have a provincial sales tax, so Alberta buyers are only eligible for the federal GST rebate. At Swift Accounting Calgary, we work with many Alberta new-home buyers navigating exactly this — and the federal $6,300 maximum is still very much worth claiming correctly.
If you are purchasing or building a new home as a rental investment rather than as your personal residence, the standard New Housing Rebate does not apply. Instead, you would apply under the GST/HST New Residential Rental Property Rebate.
This rebate also carries a federal maximum of $6,300 and uses the same 36%-of-GST formula, but it is calculated based on the fair market value of the property rather than the purchase price — and crucially, there is no phase-out threshold in the same way. Landlords who build or buy new rental property and immediately rent it out to long-term tenants can access this rebate, but the rules are distinct. You cannot assign this rebate to a builder; you must apply to CRA directly.
The application form for the New Housing Rebate is CRA Form GST190. How you submit it depends on how your home was acquired:
In most new-home purchases from a builder, the rebate is assigned to the builder at closing. You sign an assignment agreement, and the builder credits the rebate amount against your purchase price — so you effectively receive the benefit up front as a price reduction. The builder then applies to CRA directly. You should see the rebate reflected as a line item in your statement of adjustments at closing. If you do not assign the rebate to the builder, you must apply yourself within two years of closing.
If you acted as your own contractor and built your home, you apply to CRA yourself using Form GST190. The deadline is two years from the date you first occupied the home. Missing this window means forfeiting the rebate entirely — there is no extension mechanism available.
Several errors come up repeatedly when clients bring their new-home paperwork to Swift Accounting Calgary:
For the federal portion of the rebate, no. The federal rebate phases out completely at $450,000. However, if you are in an HST province such as Ontario, you may still be eligible for the provincial component of the rebate even if the federal rebate is unavailable. Ontario's provincial rebate, for example, caps at $24,000 and does not phase out in the same way — so it may still be accessible depending on your province's specific rules.
CRA considers a home substantially renovated when 90% or more of the interior of the existing building has been removed or replaced. This goes well beyond a typical kitchen or bathroom renovation. The renovation must result in a home that is essentially new, and it typically requires a professional opinion and detailed documentation to support the claim. If you are unsure whether your project qualifies, speak with an accountant before applying.
No — assigning the rebate to a builder is the standard arrangement for new-home purchases and is financially equivalent to applying yourself. The builder credits the rebate amount against your purchase price at closing, so you receive the benefit immediately without having to wait for a CRA refund. The assignment must be documented in your agreement of purchase and sale or a separate assignment agreement. Ensure this is reflected in your statement of adjustments.
Generally, no. The rebate requires that the home be used as a principal place of residence — meaning your primary home. A cottage, cabin, or recreational property does not qualify unless it genuinely functions as your principal residence. CRA looks at factors such as where you receive mail, your provincial health card address, and how frequently you occupy the property when assessing principal-residence status.
The GST/HST New Housing Rebate can put thousands of dollars back in your pocket — but only if it is claimed correctly, on the right form, within the right deadline, and under the right program. Errors and missed deadlines are permanent. If you have recently purchased a new home, broken ground on a self-build, or completed a major renovation, now is the time to confirm your eligibility and get the paperwork right.
Our team at Swift Accounting Calgary is ready to review your situation, confirm which rebate programs apply, and file on your behalf. Contact us today to speak with one of our advisors — and use our GST rebate calculator to get an instant estimate before your appointment.
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