2025 Ontario New Home HST Rebate Calculator

Current Rebate Program New Rebate Program
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
HST Rebate
PST Rebate
$24,000
PST Rebate
$24,000
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 PriceRebate %Approx. Savings
≤ $1M100%~$50,000
$1.25M50%~$25,000
≥ $1.5M0%$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.
Profile Image

Rohit Kumar Sharma

Hi There! My name is Rohit Kumar Sharma, I would love to help you with all of your real estate needs. I treat all my clients as if they were my only client and give them a top-level service! This is why for years a very high percentage of my business is repeated business or referrals from my past clients. You can reach me for a free consultation to discuss any real estate need. Before starting my career as real estate agent, I have worked in IT sector in Toronto for over 10 years as Business Development Manager and Lead Project Manager. I got tons of experience in customer service, marketing and meeting deadlines.

4166057488Contact Me
Powered by CondoX