2025 Ontario New Home HST Rebate Calculator
Developer's List Price | New Developer's List Price $476,814 |
Net Purchase PriceAmount paid to developer $463,717 | Net Purchase PriceAmount paid to developer $463,717 |
Total PST $37,097 | Total PST $37,097 |
Total GST $23,186 | Total GST $23,186 |
Total HST $60,283 | Total HST $60,283 |
HST Built into Purchase PriceNet amount paid to CRA $36,283 | HST Built into Purchase PriceNet amount paid to CRA $13,097 |
GST Rebate $0 | GST Rebate $23,186 |
Total Rebate $24,000 | Total Rebate $47,186 Savings $23,186 (-4.6%) |
Q&A: New GST Rebate for First-Time Buyers (2025)
What is the new GST rebate?
A full rebate of the 5% federal GST (or federal portion of HST) on new homes up to $1 million, available to first-time home buyers. It phases out between $1 million and $1.5 million, offering savings of up to $50,000.
How to Claim the Rebate
Buyers have two ways to claim the First-Time Home Buyers’ GST Rebate:
Option 1: Builder Claims It on Your Behalf
- Most common and easiest method.
- Builder credits the rebate directly on the purchase price or at closing.
- Builder credits the rebate directly on the purchase price or at closing.
- Buyer provides the builder with:
- Signed eligibility declaration.
- Proof of first-time home buyer status (e.g. CRA Notice of Assessment, affidavit).
- No need to submit paperwork to CRA — builder handles the claim.
Important for Realtors: Ensure your client understands whether the price includes the rebate. If not, the client must pay full GST upfront and claim it later themselves.
Option 2: Buyer Claims It Directly from CRA
- Used when:
- Builder doesn’t offer to credit the rebate.
- The buyer is building a home themselves.
- Buyer submits:
- GST190 form (Application for Rebate of GST/HST for Owner-Built Homes).
- Proof of purchase, occupancy, and eligibility.
- Supporting documents such as the purchase agreement, invoices, and title documents.
- Rebate is paid after closing.
Processing time: CRA typically processes rebates within 6–8 weeks.
Who qualifies as a first-time home buyer?
You (and your spouse/common-law partner) must:
- Not have owned or lived in a home you or your partner owned in the past 4 calendar years.
- Be 18+ and a Canadian citizen or permanent resident.
- Intend to use the property as your primary residence.
What kind of homes qualify?
- Newly built homes from a builder.
- Owner-built primary residences.
- Co-operative housing units.
- Homes on leased land also qualify.
How does the rebate phase out?
| Home Price | Rebate % | Approx. Savings |
|---|---|---|
| ≤ $1M | 100% | ~$50,000 |
| $1.25M | 50% | ~$25,000 |
| ≥ $1.5M | 0% | $0 |
Key Realtor Tips
- Double-check agreement date – must be on or after May 27, 2025.
- Watch for assignment deals – if the original agreement is before May 27, the rebate doesn’t apply.
- Be cautious with contract amendments – the original signing date still applies, which could impact eligibility.
- Educate clients early – many will not know they need to confirm eligibility with the builder before closing.
Momin Khan
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