GST/HST New Housing Rebate in Ontario: Everything First-Time Home Buyers Should Know
- Arshya Mittal
- Aug 16
- 3 min read
Updated: Aug 17
Buying a home in Ontario is exciting — but it also comes with big costs, including GST/HST. Fortunately, the GST/HST New Housing Rebate Ontario program helps reduce those expenses. With new government changes in 2025, first-time buyers could save even more.
At Mittal CPA Professional Corporation, we help homebuyers and investors maximize their rebates and avoid costly mistakes.
What is the GST/HST Housing Rebate in Ontario?
When you purchase a newly built home, condo, or substantially renovated property, you pay GST or HST on the purchase price. The GST/HST housing rebate lets you recover part (or even all) of this tax, making homeownership more affordable.
Ontario rebates include:
Federal rebate: Refund of up to 36% of the GST (or federal part of HST).
Ontario rebate: Refund on part of the provincial HST portion.
New GST/HST Rebate Changes in 2025
The government introduced a new federal GST rebate for first-time homebuyers that applies to agreements signed after May 26, 2025 and before 2031:
Homes up to $1 million: Full federal GST rebate (5% fully refunded).
Homes between $1 million and $1.5 million: Partial rebate available.
Homes over $1.5 million: Not eligible.
Buyers must take ownership before 2036.
This update is significant, as the older rebate phased out completely at $450,000 — far below today’s Ontario housing prices.
Who Qualifies as a First-Time Homebuyer?
To qualify, you must:
Be 18 or older.
Be a Canadian citizen or permanent resident.
Not have owned (or lived in a home owned by you, your spouse, or partner) in the last four years.
Each individual or couple can only claim this rebate once in their lifetime.
Conditions to Qualify for the Rebate
To be eligible, you must:
Use the property as your primary residence.
Sign the purchase agreement within the approved dates.
Ensure the home’s value is $1.5M or less.
Qualify under one of the existing GST housing rebate categories (new build, owner-built, co-op, or renovation).
Note: Agreements signed before May 27, 2025 are not eligible — even if later cancelled and re-signed.
Example Savings for Ontario Homebuyers
$900,000 Home (First-Time Buyer)
GST (5%) = $45,000.
With the new rebate, 100% is refunded.
Savings: $45,000.
$1.3 Million Home (First-Time Buyer)
GST (5%) = $65,000.
Partial rebate applies (tens of thousands refunded).
Common Reasons Rebate Claims are Denied
Incorrect buyer names on agreements.
Agreements signed outside the eligibility window.
Misreporting construction costs or home value.
Not occupying the property as your main residence.
Attempting to claim more than once.
Filing your GST/HST Rebate Application
Fill out the correct CRA form (GST190 for buyers, GST191 for rental properties).
Include purchase agreements, invoices, and proof of occupancy.
Submit within two years of closing or occupancy.
CRA reviews and issues your refund (typically 8–16 weeks).
FAQ: Ontario GST/HST Housing Rebate
Can investors claim this rebate?
Not under the first-time buyer program, but investors may qualify for the New Residential Rental Property Rebate (NRRPR).
How long does it take to get my rebate?
Usually 8–16 weeks, depending on CRA’s review process.
Can two people claim the rebate on the same property?
No. Only one claim per property is allowed, and couples can only claim once between them.
Do luxury homes qualify?
Homes valued over $1.5M do not qualify for the federal rebate.
What if I sell quickly after buying?
If you don’t occupy the home as your primary residence, the CRA may deny or claw back the rebate.
How Mittal CPA Helps
At Mittal CPA Professional Corporation, we:
Review your eligibility before you buy.
Calculate your maximum rebate (federal + provincial).
Prepare and file your rebate application accurately.
Manage CRA inquiries or disputes.
Provide tax planning advice for first-time buyers and real estate investors.
We simplify the process so you get your refund without stress.
Planning to buy, build, or renovate a home in Ontario?
Contact Mittal CPA Professional Corporation today to confirm your eligibility and maximize your GST/HST housing rebate.
