Overview
A new home rebate in Canada offers significant financial relief to eligible homeowners by recovering a portion of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) paid on a newly constructed or substantially renovated home. This program aims to make homeownership more accessible and affordable for Canadians.
Understanding the specific criteria and application process is crucial for maximizing this benefit. The rebate applies to various property types and ownership structures, provided certain conditions are met.
- Rebate Purpose: The new home rebate helps offset the GST/HST on new or extensively renovated homes, providing financial assistance to homeowners.
- Eligibility Criteria: To qualify, individuals must meet specific conditions related to occupancy, property type, and fair market value, as detailed in eligibility requirements.
- Home Conditions: The property must be a newly constructed or substantially renovated residential dwelling, with particular home conditions applying to its use and value.
- Types of Homes: Various residential properties, including detached homes, semi-detached houses, townhouses, and condominiums, are eligible for the rebate.
What is the New Home Rebate in Canada?
Buying or building a new home? Did you know that if you purchase a new home or have substantially renovated your own, you can claim a rebate on the GST or HST you paid through CRA’s new home rebate.
Who Qualifies for the New Home Rebate?
New Home Rebate Eligibility: Who Qualifies?
- Must be you or your relation’s primary place of residence,
- Must be purchased new or substantially renovated,
- Purchase price must be less than $450,000, and
- You paid GST or HST on the purchase of the land and/or on materials and construction.
The rebate is equivalent to 36% of the total GST paid to a maximum of $6,300.
Specific Conditions for Your Edmonton Home
- Detached or semi-detached home
- Duplex
- Condominium unit
- Townhouse
- Unit in a co-operative housing corporation
- Mobile home (or modular home)
- Floating home
Your home also includes any detached garage or shed, and up to 1.23 acres of land.
Home Conditions for the New Housing Rebate
- The rebate is equivalent to 36% of the total GST paid.
- The maximum available rebate is $6,300.
- The new home rebate is reduced for homes with a purchase price between $350,000 and $450,000.
- No new home rebate is available for homes purchased for over $450,000.
Types of Homes Eligible for the Rebate
Specific Rebate Conditions for Your Edmonton Home
Typically, the builder will apply for the new home rebate for you. This will be reflected in the purchase price. Before applying for the rebate, be sure this has not already been done for you.
If not, you have two years from the date of possession or ownership was transferred to you to apply for the new home rebate. You would apply using form GST190.
If you built or renovated your home yourself, you can apply for the new home rebate using form GST191 and the accompanying worksheet, GST191-WS.
If you live in a province where HST applies, there may be a rebate available for this portion of the tax paid. You may also be eligible for the rebate if you convert a property to residential use.
Additional information regarding the new home rebate can be found in the Canada Revenue Agency’s guide RC4028 GST/HST New Housing Rebate.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Thanks to Stephanie Kwan of KWB Chartered Accountants for providing this content.