With Prime Minister Mark Carney being voted into office, Canadians are seeing a new GST/HST housing rebate for 2025. To address Canada’s escalating housing affordability crisis, the new rebate will allow individuals to recover some of the Goods and Services Tax (GST) or the federal portion of their Harmonized Sales Tax (HST) paid on purchasing a new home. This rebate, which is only available for homes that will be used as your primary place of residence, will be helpful for those in the process of purchasing a newly built or substantially renovated home in Canada. Let’s look at who qualifies, how to apply, and the key documents to use successfully.
Am I eligible for the GST/HST New Housing Rebate?
You must meet specific criteria to qualify for the GST/HST New Housing Rebate. These include purchasing a newly constructed or substantially renovated home, co-op shares, or a mobile home. Let’s examine the eligibility details.
- Purchasing a New or Substantially Renovated Home: To qualify, you must have purchased a new home or one that has undergone substantial renovation from a builder. This includes homes on leased land, provided the lease is for at least 20 years. Alternatively, it will consist of the option to buy the land. The property must be for use as your primary residence.
- Co-operative Housing: You can use a unit or a brand-new, renovated co-op if you purchase shares in a co-operative housing corporation. Like above, this unit must be your or your relative’s primary residence to be eligible.
- Owner-built homes: You may also qualify if you are constructing or substantially renovating your own home or hiring someone to do so for your primary residence. The home’s fair market value, when substantially completed, must be less than $450,000.
- Mobile or Floating Homes: If you have recently purchased a new or substantially renovated mobile home or floating home, you may also qualify for the GST/HST New Rebate. Similar to other scenarios, this must be used as your or a relative’s residence. If you purchase a mobile or floating home, you can treat it as an owner-built home for the rebate.
How can I apply for the GST/HST New Housing Rebate?
Luckily, the application process for the GST/HST New Housing Rebate is quite simple! Though straightforward, you should still pay attention to detail. Let’s take a look at how you can apply:
- Complete the Rebate Form: You must complete the appropriate form for the GST/HST New Housing Rebate (FORM GST524), available through the Canada Revenue Agency (CRA).
- Submit an Application: In most cases, supporting documents aren’t necessary with your application. However, you may need to if the vendor did not charge GST/HST on your invoice. Generally, a photocopy of the invoice along with the worksheet is necessary. This helps verify that the tax was paid.
- Mail in Your Application: Send in your completed application to the address provided by the CRA. In some cases, the CRA may request additional documentation if necessary.
- Wait for Approval: Now, you wait! Once the CRA processes your application, they will notify you of approval, and your refund will then be issued accordingly.
Keep Your Documents on Hand
You will want to keep a few documents on hand if approved for the GST/HST New Housing rebate. These documents need to be kept track of for six years. Let’s take a look at what should be kept safe.
- Original invoices in your name or the co-owners’ names. Photocopies are not accepted.
- All documents and forms that were used to complete your rebate application. These should be kept for six years if the CRA requests them later.
- It is essential to note that the CRA generally does not accept photocopies, credit card receipts, or account statements as proof. Only original invoices are acceptable.
How much is the GST/HST New Housing rebate amount?
The amount you receive from the GST/HST New Housing rebate can vary greatly. It will depend on your purchase price and the GST/HST you initially paid. The rebate will typically cover a portion of the federal tax on new or substantially renovated homes. A refund for the provincial portion of the HST may also be available. This will further lower the overall cost of your new home.
It is important to note that the GST/HST New Housing rebate is unavailable to corporations or partnerships. It is only available to individuals. Corporations or partnerships that purchase homes will not qualify.
Conclusion
The GST/HST New Housing Rebate is an excellent source of financial relief for Canadian homebuyers, particularly those who have purchased a new or substantially renovated home for their primary residence. Overall, the eligibility requirements are precise, and the application process is straightforward, so there is no reason not to apply if you qualify! This rebate will help offset some tax burden, making homeownership more affordable.
Ensuring you meet all necessary criteria before submitting an application is essential. Don’t forget to complete the required forms and keep accurate documentation after applying! This can be a massive step in making your home more financially accessible! Remember, if you are in the market for a new home, home insurance is necessary to keep you and your home safe and sound. If you want to purchase new home insurance, don’t hesitate to contact us at isure or request a quote today!
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