GST/HST New Housing Rebate: A Major Advantage for First-Time Buyers

What is the GST/HST Rebate?

The federal government offers a GST/HST rebate for buyers of new or substantially renovated homes. This program allows you to recover a significant portion of the taxes paid at purchase, reducing the total acquisition cost.

Who is Eligible?

To qualify for the rebate, you must:

• Purchase a new or substantially renovated home
• Use the property as your primary residence or for a close relative
• Meet the price threshold: up to $450,000 for full rebate (partial rebate up to $350,000 in Quebec)

How Much Can You Recover?

The rebate can reach:

• GST (5%): Up to $6,300 federal rebate
• QST in Quebec (9.975%): Up to $9,975 provincial rebate
• Total potential: Over $16,000 in combined rebates!

Concrete Example:

For a $400,000 new home in Quebec:

• GST paid: $20,000 → Rebate: ~$6,300
• QST paid: $39,900 → Rebate: ~$9,975
• Total savings: ~$16,275

Advantages for First-Time Buyers

This program is particularly beneficial for first-time buyers because:

• Significant cost reduction: Save thousands that can go toward your down payment or renovations
• Better affordability: The rebate makes buying a new property more accessible
• New property = fewer repairs: Enjoy a home without structural issues and with warranty coverage
• Energy efficiency: New constructions meet current standards, reducing your energy costs

How to Apply?

The rebate application must be submitted within 2 years of purchase. Your builder can sometimes deduct the rebate directly from the purchase price, simplifying the process.

Maximize Your Benefits

A mortgage broker can help you:

• Calculate your GST/HST rebates precisely
• Plan your financing accounting for these savings
• Combine this program with other first-time buyer incentives
• Optimize your purchase strategy

Contact a mortgage broker today to discover how to maximize your savings when buying your first new home!