GST on a new home can add a major cost to a purchase. Under the updated rebate rules, eligible buyers may be able to recover up to $50,000 of that tax.
Many buyers either miss this entirely or assume they do not qualify. A quick check can make a significant difference.
Start with the two most useful tools:
Estimate your rebate instantly
Use the GST rebate calculator
Access the official application process
Apply for the GST rebate through CRA
How Much Can You Get Back?
The rebate is based on the purchase price of the home and the GST paid.
- Under $1,000,000
Full rebate of the 5% GST paid
Up to $50,000 - $1,000,000 to $1,500,000
Partial rebate, gradually reduced - $1,500,000 and over
No rebate available
This structure makes the purchase price especially important. Even a small difference in price can affect how much is recovered.
Quick Examples
- $800,000 new home
GST paid: $40,000
Rebate: $40,000 - $1,200,000 new home
GST paid: $60,000
Rebate: Partial amount based on the phase-out range - $1,600,000 new home
Rebate: $0
These examples show how quickly the rebate can change depending on price.
Run your numbers in seconds
Use the GST rebate calculator
Who Qualifies
You may qualify if:
- The home is new or substantially renovated
- You or a close family member will use it as a primary residence
- The agreement meets the timing requirements (generally contracts signed on or after May 27, 2025 under the updated program)
This applies whether buying from a builder, building on owned land, or hiring a contractor.
What Counts as a “New Home”
For rebate purposes, this generally includes:
- Newly constructed homes purchased from a builder
- Homes that have been substantially renovated
- Owner-built homes
Substantial renovations typically mean most of the interior has been removed or replaced. Smaller updates or cosmetic work will not qualify.
How to Apply
There are two common ways the rebate is handled.
Builder Applies the Rebate
- The rebate is credited at closing
- You pay less GST upfront
- The builder handles the submission
Buyer Applies Directly
- Required if the rebate is not credited at closing
- You must submit CRA forms and supporting documents
- Documentation usually includes the purchase agreement and proof of occupancy
Start your application here
Apply for the GST rebate through CRA
Deadlines
- Applications must generally be filed within 2 years of closing or substantial completion
- Missing the deadline can result in losing the rebate
Keeping records organized early can help avoid issues later.
Common Mistakes That Delay Rebates
- Assuming the builder applied the rebate when they did not
- Missing the 2-year filing deadline
- Providing incomplete or inconsistent information
- Not meeting the primary residence requirement
A quick review before submitting can prevent delays.
Why This Matters in British Columbia
With many homes priced near or above $1M, buyers in BC often fall into the partial rebate range or miss the rebate entirely.
Understanding where a property falls before finalizing a purchase can help avoid surprises and allow for better planning.
Working with a real estate lawyer in Victoria for new home purchases can help ensure the rebate is addressed properly as part of the transaction.
FAQs
Who qualifies for the GST new housing rebate?
Buyers of new or substantially renovated homes who plan to live in the property as a primary residence, subject to price limits.
Can the rebate be applied at closing?
Yes. Many builders apply it upfront, reducing the GST payable.
What if the rebate is not applied at closing?
The buyer must apply directly through the CRA using the required forms.
How long do I have to apply?
Typically two years from closing or substantial completion.
Does this apply to resale homes?
No. The rebate generally applies only to new or substantially renovated homes.
Start With the Two Most Important Steps
Most buyers only need two things:
✔ A quick estimate
✔ The correct forms
Step 1: Estimate your rebate
Use the GST rebate calculator
Step 2: Access the application forms
Download the GST rebate forms
For guidance on eligibility, structuring a purchase, or handling the rebate correctly, contact Sunny Tathgar for support before or after closing.
