New Housing Rebate
The federal new housing rebate and the first-time home buyers GST rebate: amounts, who qualifies, deadlines and denials.
The short version
- The federal GST/HST new housing rebate gives back 36% of the GST (or the federal part of HST), up to $6,300, on a new or substantially renovated home you or a relation will live in.
- The full rebate applies to homes under $350,000; it shrinks to zero at $450,000. In most cities that means a smaller rebate, or none.
- First-time buyers can also claim the first-time home buyers' GST rebate: up to $50,000, for homes up to $1 million, phased out by $1.5 million. Together they can cover 100% of the GST on homes up to $1 million.
- Most buyers assign the rebates to the builder, who credits them in the price. Otherwise you apply yourself, generally within two years of taking ownership.
- HST provinces have their own provincial rebates. Ontario's is covered in depth on OntarioHSTRebates.ca.
New Housing Rebate
The new housing rebate was designed in 1991, and its price limits haven't moved since. A rebate that phases out at $450,000 doesn't do much in a market where that buys a parking spot and a dream. That's why the first-time buyers' rebate, added in 2025, matters so much more for most people. Here's how both work, who qualifies, and how the money actually reaches you.
The Two Federal Rebates
| New housing rebate | First-time home buyers' (FTHB) GST rebate | |
|---|---|---|
| Amount | 36% of the GST or federal HST, up to $6,300 | Up to 100% of the GST or federal HST, maximum $50,000 |
| Price limit | Full under $350,000; nothing at $450,000 or more | Full up to $1 million; nothing at $1.5 million or more |
| Who | Any individual buying a home for themselves or a relation to live in | First-time buyers only (no home owned and lived in by you or your spouse this year or in the past four years), 18 or older, citizen or permanent resident |
| Dates | Ongoing | Agreements with the builder from May 27, 2025 and before 2031; construction started before 2031 and substantially completed before 2036 |
| How often | Each qualifying purchase | Once in a lifetime (and not if your spouse has claimed it) |
Owner-built homes qualify for both, with their own rules; see owner-built home rebate.
Examples
| New home in a 5% GST province | GST | Rebates (first-time buyer) | Rebates (not first-time) |
|---|---|---|---|
| $500,000 | $25,000 | $25,000 (all of it) | $0 (over $450,000) |
| $900,000 | $45,000 | $45,000 (all of it) | $0 |
| $1,250,000 | $62,500 | $25,000 (50% of the $50,000 maximum) | $0 |
In HST provinces, these federal rebates apply to the 5% federal part only; provincial rebates are separate.
Which housing rebates do you qualify for?
Enter the price, province, your first-time buyer status and whether you'll live there. The assistant lists each rebate, the amount, whether it's already in your price, and your deadline.
How You Get the Money
- Assigned to the builder (most common): you sign the rebate application at closing, the builder credits the rebate against your price and claims it from CRA. Check the statement of adjustments to see the amount.
- Applying yourself: on form GST190 (and the FTHB application if applicable), when the builder didn't credit it, generally within two years after ownership is transferred to you.
- Owner-built: form GST191 with its worksheet, generally within two years of substantial completion or first occupancy, whichever is earlier.
Keep the agreement, statement of adjustments and receipts for six years.
Common Reasons a Rebate Is Denied
- Nobody in the buyer's family moved in as their primary residence (an investment purchase).
- One buyer on title isn't living there and isn't a relation of someone who is.
- The claim was filed after the deadline.
- For the FTHB rebate: one of the buyers, or a spouse, owned and lived in a home in the past four years.
- The home sold before anyone moved in.
If a builder credited a rebate you didn't qualify for, CRA can collect it from you and the builder. If CRA denies your claim, you can object within 90 days of the notice; see notice of reassessment: what to do.
Housing rebate denied?
You generally have 90 days from the notice to object. The SmartFile works out which condition CRA says you missed, gathers the proof that usually answers it, and drafts the objection.
Provincial Rebates
Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador and PEI each have their own rules for the provincial part of HST. Ontario's rebate is up to $24,000 on the provincial part, with enhanced rebates in some cases. For Ontario rules, forms and a free eligibility check, use OntarioHSTRebates.ca. For other provinces, check the provincial program before you rely on a number.
The bigger picture is on GST/HST on new homes. Renting the home out instead? See the new residential rental property rebate. First-time buyers should also use the FHSA and the home buyers' amount.
New Housing Rebate Questions
How much is the GST/HST new housing rebate?
The federal rebate is 36% of the GST or federal part of the HST, up to $6,300, for homes under $350,000. It decreases between $350,000 and $450,000 and is not available at $450,000 or more.
Who qualifies for the first-time home buyers’ GST rebate?
Individuals 18 or older who are Canadian citizens or permanent residents, buying a new home as their primary residence, who have not lived in a home they or their spouse owned in the current year or the four preceding years.
Can I get both the new housing rebate and the FTHB rebate?
Yes. Together they can rebate 100% of the GST or federal part of the HST on new homes up to $1 million.
What is the deadline to apply for the new housing rebate?
Generally two years after ownership of the home is transferred to you, if you apply directly rather than through the builder.
Do I get the rebate if I buy a new home to rent out?
Not the owner-occupied rebate. You may qualify for the new residential rental property rebate instead.
Sources: CRA, Guide RC4028, GST/HST New Housing Rebate; First-time home buyers' GST/HST rebate; Finance Canada, GST relief for first-time home buyers. Checked October 2026. The FTHB rebate received Royal Assent; the form names for claiming it directly may change. Provincial rebates outside Ontario are not detailed, and we are not sure of their current amounts.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.