Planning to buy, build, or renovate a home in Canada? You may qualify for significant savings through the GST/HST New Housing Rebate, and as of May 27, 2025, a new GST exemption for first-time homebuyers could save you up to $50,000 upfront.
This guide covers everything you need to know about Canada’s GST housing rebate, who qualifies, how to apply, and what’s changed in 2025.
What Is the GST/HST New Housing Rebate?
The GST/HST New Housing Rebate allows you to recover a portion of the Goods and Services Tax (GST) or the federal part of the Harmonised Sales Tax (HST) paid on qualifying residential properties.
According to Canada.ca, this rebate applies if the home is intended to be your primary place of residence.
You may be eligible if you:
Purchased a newly built or substantially renovated home, including condos, townhouses, duplexes, mobile or modular homes, and floating homes
Built a new home or hired someone to build it on land you major addition
Converted a non-residential building into your home
Bought a co-op housing share that gives you exclusive rights to a unit
Important: To qualify, all homebuyers listed must be individuals. The rebate is not available if a corporation or partnership is part of the ownership.
New in 2025: GST Exemption for First-Time Buyers
One of the most impactful housing incentives this year is the new GST exemption announced for first-time homebuyers in Canada.
Key benefits:
Applies to newly constructed homes worth up to $1.5 million
Available exclusively to first-time homebuyers
Home must be your principal residence
Saves you up to $50,000 at the time of purchase — no need to file for a rebate
This exemption became effective on May 27, 2025, and offers immediate relief by removing the GST from eligible home purchases. This will help new buyers offset rising home prices in cities like Toronto, Vancouver, and Calgary.
What If You’re Buying With Others?
In April 2021, the CRA updated the rules to account for multiple buyers — a common scenario in today’s housing market.
You may still be eligible for the rebate if:
All owners are individuals
At least one buyer occupies the home as their primary place of residence
The purchase agreement was signed on or after April 19, 2021
This change is especially helpful for buyers who include a parent, friend, or co-signer on the title for mortgage support.
How to Apply for the GST/HST New Housing Rebate Online
The CRA now allows eligible homeowners to file their rebate applications online through the My Account portal.
Forms available for online filing:
GST190 – Application for homes purchased from a builder
GST191 – Application for owner-built homes
GST524 – Rebate for new residential rental properties
This digital option offers a faster, more convenient way to file and track your rebate status.
Summary: How to Maximise Your Housing Tax Savings
Thanks to Canada’s updated tax relief programs, buyers and builders have a real opportunity to save in 2025. Whether you’re purchasing your first condo or building your forever home, these rebates and exemptions can put thousands of dollars back in your pocket.
Quick Recap:
Apply for the GST/HST New Housing Rebate if you’re buying, building, or renovating your primary residence
Take advantage of the GST exemption for first-time buyers on homes up to $1.5 million
File rebate forms online using the CRA’s My Account
Understand co-ownership rules and special guidelines for Quebec residents
Helpful Links
Looking to purchase a home and want to check eligibility? Reach out for assistance. We're here to help simplify the process and maximize your return.