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The GST/HST new housing rebate lets an individual recover part of the GST, or the federal part of the HST, paid on a new or substantially renovated home bought or built as a primary residence, and is generally available in full only where the home’s fair market value is under $450,000.
The rebate is available to an individual (not a corporation or partnership) who buys new or substantially renovated housing from a builder, buys shares in a qualifying co-op, or builds or substantially renovates their own home, in each case for use as their own or a relation's primary place of residence. Claims are made through CRA Form GST190 for builder purchases or GST191 for owner-built homes, and supporting invoices must be kept for six years.
The federal rebate is generally only available in full where the home's fair market value is under $450,000. In Ontario, a separate provincial new housing rebate covers the provincial part of the HST up to a maximum of $24,000, and can still apply even when the fair market value exceeds the federal threshold, as long as the other conditions are met — a detail worth checking alongside other closing costs on a new-build purchase.
Federal fair market value threshold: the GST/HST new housing rebate is generally available in full only where the home's fair market value is under $450,000.
Ontario's top-up rebate: Ontario's provincial new housing rebate, covering the provincial part of the HST, is available up to a maximum of $24,000 regardless of fair market value, provided the other conditions are met.
Individuals only: the rebate is available to individuals buying for their own (or a relation's) primary residence, not to corporations, partnerships, or straight rental purchases.
Paper trail required: claims use CRA Form GST190 (builder purchases) or GST191 (owner-built homes), and original supporting invoices must be kept for six years.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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