How the rebate is calculated
Federal GST Rebate:
- • ≤$350,000: 36% of GST (max $6,300)
- • $350,000-$450,000: Gradually decreasing
- • >$450,000: No federal rebate
Ontario Provincial Rebate:
75% of provincial portion (8%), max $24,000
Based on CRA Form GST190 and provincial guidelines. Verify with official sources.
How to Calculate Your Rebate
4 simple steps
Enter Home Price
Purchase price of your new home
Select Province
Choose your province for correct tax rates
View Federal Rebate
See your GST rebate amount
View Provincial Rebate
See additional provincial rebate if applicable
Federal GST Rebate Rules
Up to $6,300 back on the 5% GST
36% of GST, max $6,300
Gradually decreasing
Federal rebate = $0
Pro tip: The federal rebate disappears completely at $450,000 – not gradually! Some provinces still offer rebates above this price.
Provincial Rebates by Province
Additional rebates vary by location
Ontario
- • HST 13% (5% GST + 8% provincial)
- • Provincial rebate: 75% of 8%
- • Max $24,000 (no price limit!)
Quebec
- • GST 5% + QST 9.975%
- • QST rebate: 50% for ≤$200k
- • Max $9,975 (decreases $200k-$300k)
Saskatchewan
- • GST 5% + PST 6%
- • PST rebate: 42% of 6%
- • Max $11,340 (decreases $450k-$550k)
Nova Scotia
- • HST 15% (5% GST + 10% provincial)
- • First-time buyers only
- • Max $3,000
BC, Alberta, Manitoba, NB, NL, PEI: No provincial rebate available (federal rebate only)
Eligibility Requirements
Make sure you qualify
Principal Residence
Must be your primary home – not a rental property or vacation home
New Construction
Newly built home or substantially renovated property (90%+ new)
Apply Within 2 Years
Submit your rebate application within 2 years of closing
Individual Buyer
Must be purchased by an individual, not a corporation
Real-World Scenarios
See how the rebate works in practice
The “First Condo” Scenario
Sarah buys a pre-construction condo for $340,000. Since the price is under $350,000, she gets the maximum federal rebate.
Result: She gets a cheque for $6,120 effectively reducing her GST.
The “$450k Cliff”
Mike buys a townhome for $460,000. Even though he paid $23,000 in GST, he gets $0 federal rebate because he crossed the $450,000 limit.
Warning: The federal rebate drops to zero immediately after $450k.
The “Ontario Advantage”
The Zhang family buys a detached home for $800,000. The price is well over the federal $450k limit, so they get $0 federal rebate.
HOWEVER, Ontario’s provincial rebate has no price limit. They still qualify for the maximum provincial rebate of $24,000.
Result: They still get $24,000 back, even on a luxury home.
How to Apply
Don't leave money on the table
Getting your money back isn’t automatic. You have two main ways to apply for the New Housing Rebate, and choosing the wrong one can delay your money by months.
The “Instant” Method
Most builders will let you apply for the rebate at the time of closing.
- Builder reduces final price by rebate amount
- You sign forms at lawyer’s office
You don’t need to pay the tax upfront and wait for a cheque.
The “Direct” Method
If the builder didn’t credit you the rebate, you must apply directly to the CRA.
- Fill out Form GST190
- Mail with Statement of Adjustments
Typically 2-6 months to receive your cheque.
Don’t Miss the Deadline!
Common Pitfalls
3 ways people lose their rebate
The “Co-Signer” Trap
If a parent co-signs the mortgage but doesn’t live in the house, you might lose the entire rebate. All owners listed on the title must intend to live there (unless related/support rules apply).
The “Flipper” Trap
If you sell the house shortly after closing (e.g., within a year), the CRA may deem you a “flipper” and demand the rebate back with interest. It must be your primary residence.
The “Rental” Mistake
Buying to rent it out? Do NOT apply for the “New Housing Rebate”. You need the “New Residential Rental Property Rebate” (NRRPR). Wrong form = rejection.
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Frequently Asked Questions
Common questions about the new housing rebate
What is the GST/HST new housing rebate?
The new housing rebate is a refund of part of the GST/HST you pay when buying a newly constructed or substantially renovated home in Canada. The federal portion offers up to $6,300 back on the 5% GST, and some provinces offer additional rebates on their provincial tax portion.
How much is the federal GST rebate?
For homes priced at $350,000 or less, you receive 36% of the GST paid (max $6,300). Between $350,000-$450,000, the rebate gradually decreases. Above $450,000, the federal rebate is $0. Note: The rebate disappears completely at $450,000 – it doesn't gradually phase out above this point.
Which provinces offer additional rebates?
Ontario offers up to $24,000 (75% of provincial portion). Quebec offers up to $9,975 for homes under $300,000. Saskatchewan offers up to $11,340 for homes under $550,000. Nova Scotia offers up to $3,000 for first-time buyers. BC, Alberta, and other provinces have no provincial rebate.
Do I qualify for the new housing rebate?
To qualify: 1) The home must be your principal residence (not rental or vacation property). 2) It must be a new construction or substantially renovated home. 3) You must apply within 2 years of purchase. 4) You must be an individual (not a corporation).
Can I still get a rebate if my home is over $450,000?
The federal GST rebate is not available for homes over $450,000. However, some provinces (like Ontario) still offer their provincial rebate regardless of price – Ontario's rebate applies to homes at any price point, up to $24,000 max.