Buying, building, or substantially renovating a home in Canada can be expensive, especially when GST or HST is added to the cost. The good news is that some homebuyers and homeowners may be able to recover part of the GST or the federal portion of the HST through the GST/HST New Housing Rebate.
This rebate is designed for individuals who buy, build, or substantially renovate a home that will be used as their own primary place of residence, or as the primary place of residence of a close relation. However, the rules are detailed, and the correct application depends on how the home was purchased or built.
This guide explains the GST/HST new housing rebate in simple terms, including who may qualify, which forms are used, what documents you should keep, and when Ontario buyers may also qualify for a provincial new housing rebate.
What Is the GST/HST New Housing Rebate?
The GST/HST new housing rebate allows an eligible individual to recover part of the GST or the federal portion of the HST paid on a new or substantially renovated home.
The rebate may apply when you:
- Buy a newly built home from a builder
- Buy a substantially renovated home from a builder
- Build your own home
- Hire someone to build your home
- Substantially renovate your existing home
- Buy a new or substantially renovated mobile home, modular home, or floating home
- Buy shares in a co-operative housing corporation to live in a new or substantially renovated unit
The home must generally be intended for use as your primary place of residence, or the primary place of residence of a relation.
Who Can Claim the GST/HST New Housing Rebate?
The rebate is available to individuals, not corporations or partnerships.
You may be eligible if you are an individual and one of the following situations applies.
- You Bought a New Home from a Builder
You may qualify if you purchased a new or substantially renovated home from a builder and the home is for use as your, or your relation’s, primary place of residence.
This can include:
- A newly built house
- A substantially renovated house
- A condominium unit
- A new or substantially renovated mobile home
- A modular home
- A floating home
- A home purchased together with leased land, where the lease is for at least 20 years or gives you the option to buy the land
- A qualifying co-operative housing unit where shares were purchased for the purpose of living in the unit
For homes purchased from a builder, the main federal rebate form is usually Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
If the property is in Ontario and you are also applying for the provincial part of the HST, you may also need the Ontario rebate schedule.
- You Built Your Own Home or Hired Someone to Build It
You may qualify for the owner-built housing rebate if you built your own home or hired contractors to build it for you.
This can apply where you:
- Built a house on land you already owned or leased
- Hired a builder or contractors to construct the home
- Built a new home for use as your primary residence or your relation’s primary residence
For owner-built homes, the main federal form is usually Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses. You may also need to complete the construction summary worksheet.
- You Substantially Renovated Your Home
A substantial renovation may qualify for the rebate if the renovation is significant enough to meet CRA requirements.
In general, a substantial renovation means that at least 90% of the interior of the existing house has been removed or replaced, excluding certain structural elements.
This is an important point because normal repairs, decorating, kitchen upgrades, bathroom improvements, or partial renovations usually do not qualify on their own.
Examples that may qualify include:
- A major renovation where almost the entire interior is removed or replaced
- A commercial building converted into a residential home
- A major addition that significantly changes the home, such as adding a full second storey to a bungalow
Smaller additions, such as a sunroom, family room, or bedroom by itself, may not be enough to qualify as a major addition.
- You Bought a Mobile Home, Modular Home, or Floating Home
A new or substantially renovated mobile home, modular home, or floating home may also qualify if it is used as your primary place of residence, or your relation’s primary place of residence.
Depending on the situation, you may have the option to claim the rebate as:
- A home purchased from a builder, or
- An owner-built home
The correct approach depends on how the home was purchased, built, or renovated.
GST/HST New Housing Rebate and the $450,000 Limit
For the federal GST/HST new housing rebate, the fair market value of the home can affect eligibility and the rebate amount.
For owner-built homes, CRA rules refer to the fair market value of the house when construction is substantially completed. If the fair market value is $450,000 or more, the federal rebate may not be available.
However, provincial new housing rebates may still be available in some provinces, depending on the rules that apply.
Ontario New Housing Rebate
If your home is located in Ontario, you may be eligible for the Ontario new housing rebate for the provincial portion of the HST.
One important Ontario rule is that the Ontario new housing rebate may still be available even where the federal GST/HST new housing rebate is not available only because the fair market value of the home exceeds $450,000.
The Ontario rebate can be worth up to the applicable maximum amount, provided all other conditions are met.
Because Ontario rules can differ from the federal rebate rules, buyers and homeowners should review their situation carefully before applying.
First-Time Home Buyers’ GST/HST Rebate
The CRA has also introduced information about the First-Time Home Buyers’ GST/HST Rebate. This rebate is separate from the existing GST/HST new housing rebate and may apply to eligible first-time home buyers.
Because first-time buyer rebate rules may involve specific dates, purchase conditions, and eligibility requirements, it is important to check the latest CRA guidance before applying.
Which CRA Forms Do You Need?
The form you use depends on your situation.
If You Bought a Home from a Builder
You may need:
- Form GST190 – GST/HST New Housing Rebate Application for Houses Purchased from a Builder
- RC7190 ON – Ontario Rebate Schedule, if the home is in Ontario and you are claiming the Ontario rebate
If You Built or Substantially Renovated Your Own Home
You may need:
- Form GST191 – GST/HST New Housing Rebate Application for Owner-Built Houses
- GST191-WS – Construction Summary Worksheet
- RC7191 ON – Ontario Rebate Schedule, if the home is in Ontario and you are claiming the Ontario rebate
Choosing the wrong form can delay your rebate, so it is important to identify whether your case is a builder-purchased home, owner-built home, substantial renovation, mobile home, or co-operative housing situation.
What Documents Should You Keep?
In many cases, you may not need to send all supporting documents with your rebate application. However, the CRA can ask for proof, so your records must be complete.
You should keep:
- A copy of the completed rebate application forms
- Original purchase documents
- Original invoices
- Builder agreements
- Renovation contracts
- Proof of payment
- Occupancy documents
- Closing documents
- Construction records, where applicable
- Any documents used to complete the rebate forms
The CRA generally requires original invoices in the name of the claimant or co-owners. Estimates, quotes, credit card slips, Interac slips, and account statements are usually not enough on their own.
You should keep your records for at least six years in case the CRA asks to review them.
Common Mistakes to Avoid
Many GST/HST new housing rebate applications are delayed or rejected because of avoidable errors.
Common mistakes include:
- Claiming under the wrong rebate category
- Using the wrong CRA form
- Assuming every renovation qualifies as a substantial renovation
- Not keeping original invoices
- Failing to prove the home is a primary place of residence
- Missing Ontario rebate schedules where applicable
- Confusing the federal rebate with the provincial rebate
- Applying without checking fair market value limits
- Claiming through a corporation or partnership instead of as an individual
Before submitting your application, it is worth reviewing the eligibility rules carefully or speaking with a tax professional.
GST/HST New Housing Rebate for Homes in Mississauga, Brampton, and Ontario
If you purchased, built, or substantially renovated a home in Ontario, including areas such as Mississauga, Brampton, Toronto, Oakville, Milton, Vaughan, or Hamilton, your rebate situation may involve both the federal GST/HST new housing rebate and the Ontario new housing rebate.
This is where professional guidance can be helpful, especially if:
- Your home value is above $450,000
- You purchased from a builder
- The builder credited the rebate on closing
- You built or renovated the home yourself
- You are unsure whether the renovation qualifies
- You are claiming both federal and Ontario rebate amounts
- You need help completing GST190, GST191, or Ontario rebate schedules
A small mistake can delay the rebate or reduce the amount you receive.
Need Help With Your Personal Tax or GST/HST Rebate?
If you are claiming the GST/HST new housing rebate, you may also need support with your personal tax return, CRA forms, or rebate documentation. Our Personal Tax Services team can help you review your eligibility, prepare the correct forms, and avoid common filing mistakes.
Final Thoughts
The GST/HST new housing rebate can provide valuable tax relief for eligible homebuyers and homeowners in Canada. However, the rules are not always straightforward. Eligibility depends on how the home was purchased, built, or renovated, who will live in the home, the fair market value, the type of property, and whether provincial rebate rules apply.
If you are buying a new home, building your own home, or completing a major renovation, review your rebate eligibility before filing. Keeping proper documents and using the correct CRA form can make the process much smoother.
For homeowners in Ontario, the provincial new housing rebate may also provide additional relief, even in some cases where the federal rebate is limited because of the home’s value.
Need Help Claiming the GST/HST New Housing Rebate?
If you are unsure whether you qualify for the GST/HST new housing rebate, our tax team can help review your situation, identify the correct forms, and guide you through the filing process.
Contact us today for professional GST/HST rebate support for new homes, owner-built homes, substantial renovations, and Ontario new housing rebate claims.
Frequently Asked Questions(FAQs) About the GST/HST New Housing Rebate
The GST/HST new housing rebate allows eligible individuals to recover part of the GST or the federal portion of the HST paid on a new or substantially renovated home used as a primary place of residence.
Yes, you may be eligible if you bought a new or substantially renovated home from a builder and the home is for use as your, or your relation’s, primary place of residence.
You may qualify if the renovation meets CRA’s substantial renovation rules. Generally, this means at least 90% of the interior of the existing house has been removed or replaced.
No. The GST/HST new housing rebate is not available to corporations or partnerships. It is for eligible individuals.
For a home purchased from a builder, the main form is usually Form GST190.
For an owner-built home, the main form is usually Form GST191, along with the construction summary worksheet.
Yes. Ontario has a new housing rebate for the provincial portion of the HST. In some cases, it may be available even if the federal rebate is limited because of the home’s value.
You should keep copies of your forms, original invoices, and supporting documents for at least six years in case the CRA asks to review them.