New Home GST

Sales Tax on New Homes

Buying a home can be a much more complex process than one would like to think. There’s paperwork after paperwork, and tax after tax. It is important to be familiar with the distinct taxes that are applied to the purchase of your home, and to be financially savvy enough to recover some of that money back (in certain cases, if permissible). Once again, our How to Buy a Home associates are here to help you, and here, we’ll be reviewing the GST tax, and how you can get some of it back if you meet the proper requirements. 

When do you need to pay GST on a home purchase?

The only time that you need to pay GST on a home purchase is when you’re buying a brand new home. 

This home could be a single-family home, condo, townhouse or even mobile home. The GST is generally rolled into your mortgage payment to make it easy for you to pay. 

What is the new home GST rebate?

If you meet certain conditions, you are eligible to get a rebate on the GST/HST paid on your purchase.  To be eligible for this rebate:

  1. The home must be purchased as your primary residence.  If the home is purchased with the intent of using it as a rental property, you are not eligible for the new home GST rebate. 
  2. The purchase price of the home, no matter where in Canada you live, must be below $450,000 plus GST/HST. 

How do I claim the new home GST rebate?

In order to apply for the rebate, you’ll need to complete Form GST190 and file it with your personal income tax. 

Looking for more information? Get personalized advice from our team!