How to Apply for the GST/HST Rebate After Buying a New Home in Canada (2026 Guide)
Buying a brand-new home is an exciting milestone, but many buyers are surprised to learn they may qualify for a valuable GST/HST rebate after closing. If you recently purchased a newly built home, condo, or pre-construction property in Canada, understanding how the GST/HST rebate works could potentially save you thousands of dollars.
In this guide, we will break down:
- What the GST/HST rebate is
- Who qualifies
- How much money you may receive
- How to apply after closing
- Common mistakes buyers should avoid
- Special notes for Ontario home buyers in 2026
What Is the GST/HST Rebate?
The GST/HST New Housing Rebate is a government program designed to help reduce the tax burden on buyers purchasing newly constructed homes.
When you purchase a new home from a builder in Canada, GST or HST is often included in the purchase price. Depending on your situation, you may qualify to recover a portion of those taxes.
In Ontario, the HST rate is 13%, which includes:
- 5% Federal GST
- 8% Provincial Portion
Eligible buyers may receive rebates on both portions.
Who Qualifies for the GST/HST Rebate?
You may qualify if:
You purchased a newly built or substantially renovated home
The property will be used as your primary residence
You purchased the property as an individual (not a corporation)
The home price falls within eligible rebate thresholds
You or an immediate family member will occupy the home
Eligible properties may include:
- Newly built detached homes
- Semi-detached homes
- Townhomes
- Condominiums
- Some owner-built homes
How Much Is the GST/HST Rebate?
The amount varies depending on the purchase price of the property.
Federal Portion (5%)
For homes priced under certain thresholds, buyers may receive a rebate on part of the federal GST.
Generally:
- Full rebate available on homes priced up to $350,000
- Partial rebate available between $350,000 and $450,000
- No federal rebate above $450,000 (under older rules)
Ontario Provincial Portion
Ontario also offers a provincial rebate that can help offset the provincial portion of the HST.
The maximum Ontario rebate is generally up to:
$24,000
Even homes above the federal threshold may still qualify for the Ontario portion.
Did the Builder Already Apply the Rebate?
In many new construction purchases, the builder already credits the rebate to the buyer at closing.
This is very common with:
- Pre-construction condos
- New subdivisions
- Builder inventory homes
The purchase agreement often includes wording such as:
- “HST included in purchase price”
- “Buyer assigns rebate to builder”
If this wording exists, the builder likely already applied the rebate on your behalf.
How to Apply for the GST/HST Rebate Yourself
If the builder did NOT credit the rebate at closing, you may need to apply directly through the Canada Revenue Agency (CRA).
Step 1: Gather Your Documents
You will typically need:
Agreement of Purchase and Sale
Statement of Adjustments
Closing documents
Mortgage documents
Proof the home is your primary residence
Examples of proof may include:
- Driver’s licence
- Utility bill
- Insurance documents
- Government mail
Step 2: Complete the Required Forms
The main application form is:
Form GST190 – GST/HST New Housing Rebate Application
Ontario buyers may also need:
Ontario rebate schedules and supporting forms
Your lawyer or accountant can help ensure the forms are completed properly.
Step 3: Submit Your Application
Applications are submitted to the CRA.
You may be able to:
- Submit through your CRA account
- Mail the completed application package
Always keep copies of all documents for your records.
Step 4: Wait for Processing
Processing times can vary depending on application volume and CRA review requirements.
If approved, the rebate is typically issued by cheque or direct deposit.
Important Deadline
️ Buyers generally must apply within 2 years of the closing or ownership transfer date.
Missing the deadline could result in losing eligibility for the rebate.
Common Mistakes Buyers Make
Assuming the builder handled everything
Always confirm whether the rebate was already assigned to the builder.
Missing paperwork
Incomplete applications can delay processing.
Applying too late
Do not wait until the last minute to file.
Using the property incorrectly
The rebate is generally intended for primary residences.
Special Notes for Ontario Buyers in 2026
Ontario and the federal government have discussed expanded rebate programs aimed at improving affordability for new home buyers.
Some first-time buyers may qualify for additional savings depending on:
- Purchase timing
- Property type
- Price thresholds
- Program eligibility
Because rules and programs can change, buyers should verify the most current eligibility requirements with:
- Their real estate lawyer
- CRA
- Mortgage professional
- Real estate professional
Final Thoughts
The GST/HST rebate can provide meaningful savings for buyers purchasing newly built homes in Canada.
Understanding whether the rebate was already included in your purchase price and knowing how to apply if it was not I can help you avoid confusion after closing.
If you recently purchased a new construction home and are unsure whether you qualify, speaking with a knowledgeable real estate professional and lawyer can help you navigate the process properly.
Need Help Navigating the New Home Buying Process?
Thinking of buying, selling, or investing in the GTA?
Raj Kaushal /Broker 647-504-7255
Garima Kaushal /Real Estate Professional 647-917-2590
Accsell Realty Inc., Brokerage