Buying or building a new home? Did you know that if you purchase a new home or have substantially renovated your own, you can claim a rebate on the GST or HST you paid through CRA’s new home rebate.
Your home must meet the following conditions:
- Must be you or your relation’s primary place of residence,
- Must be purchased new or substantially renovated,
- Purchase price must be less than $450,000, and
- You paid GST or HST on the purchase of the land and/or on materials and construction.
The rebate is equivalent to 36% of the total GST paid to a maximum of $6,300.
The following types of homes qualify for the rebate:
- Detached or semi-detached home
- Condominium unit
- Unit in a co-operative housing corporation
- Mobile home (or modular home)
- Floating home
Your home also includes any detached garage or shed, and up to 1.23 acres of land.
What you can get back under the new home rebate:
- The rebate is equivalent to 36% of the total GST paid.
- The maximum available rebate is $6,300.
- The new home rebate is reduced for homes with a purchase price between $350,000 and $450,000.
- No new home rebate is available for homes purchased for over $450,000.
How do you apply?
Typically, the builder will apply for the new home rebate for you. This will be reflected in the purchase price. Before applying for the rebate, be sure this has not already been done for you.
If not, you have two years from the date of possession or ownership was transferred to you to apply for the new home rebate. You would apply using form GST190.
If you built or renovated your home yourself, you can apply for the new home rebate using form GST191 and the accompanying worksheet, GST191-WS.
If you live in a province where HST applies, there may be a rebate available for this portion of the tax paid. You may also be eligible for the rebate if you convert a property to residential use.
Additional information regarding the new home rebate can be found in the Canada Revenue Agency’s guide RC4028 GST/HST New Housing Rebate.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Thanks to Stephanie Kwan of KWB Chartered Accountants for providing this content.