*NEW* GST/HST Housing Rebate

Date Posted: June 6, 2025

As of May 27, 2025, the Canadian government has introduced the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) to enhance housing affordability for first-time buyers. This program allows eligible individuals to recover up to $50,000 of the Goods and Services Tax (GST) or the federal portion of the Harmonized Sales Tax (HST) paid on new homes.

Key Features of the FTHB GST Rebate

• Full Rebate for Homes Up to $1 Million: First-time buyers purchasing new homes valued at $1 million or less are eligible for a 100% rebate of the GST or federal portion of the HST.

• Phased Rebate for Homes Between $1 Million and $1.5 Million: For homes priced between $1 million and $1.5 million, the rebate is gradually reduced. For instance, a home valued at $1.25 million would qualify for a 50% rebate, equating to up to $25,000.

• No Rebate for Homes Above $1.5 Million: Properties priced at $1.5 million or more do not qualify for the FTHB GST Rebate.

Eligibility Criteria

To qualify for the FTHB GST Rebate, applicants must:

• Be First-Time Home Buyers: Neither the applicant nor their spouse/common-law partner should have owned or lived in a home they owned in the current or preceding four calendar years.

• Be Canadian Citizens or Permanent Residents: Applicants must be at least 18 years old and hold Canadian citizenship or permanent residency status.

• Use the Home as a Primary Residence: The purchased or constructed home must serve as the primary place of residence for the applicant.

Applicable Property Types

The rebate applies to:

• Newly Constructed Homes: Homes purchased directly from builders, including those on leased land.

• Owner-Built Homes: Homes constructed by the owner or through contracted services.

• Cooperative Housing Units: Shares in cooperative housing corporations where the unit will serve as the primary residence.

Timeframe for Eligibility

• Purchase Agreements: Must be entered into on or after May 27, 2025, and before January 1, 2031.

• Construction Completion: The construction of the home must commence before January 1, 2031, and be substantially completed before January 1, 2036.

Application Process

• Forms Required: Applicants need to complete Form GST190, "GST/HST New Housing Rebate Application for Houses Purchased from a Builder," and, if applicable, Form RC7190-WS, "GST190 Calculation Worksheet."

• Submission: These forms should be submitted to the Canada Revenue Agency (CRA) within two years of the home's closing date or the substantial completion of construction.

Additional Information

• One-Time Claim: The FTHB GST Rebate can only be claimed once per individual or couple.

• Assignment Sales: If the original purchase agreement was signed before May 27, 2025, and later assigned to a first-time buyer, the rebate does not apply.

• Combined Rebates: This rebate can be combined with existing federal and provincial housing rebates where applicable.

For more detailed information and to access the necessary forms, please visit the official release.