If you’re buying a newly built home or a substantially renovated home in the Greater Toronto Area (Mississauga, Brampton, Caledon), there’s a helpful tax rebate you should know about: the Canada Revenue Agency (CRA) “GST/HST New Housing Rebate” (sometimes called the new-housing rebate for short).
In simple terms: when you buy a new home (or substantially renovate and live in it), you may be able to recover some of the GST or federal part of the HST you paid.
Because I’ve spent many years selling new-build, builder-home and pre-construction properties across Mississauga, Brampton and Caledon, I’ve seen many buyers miss this opportunity — so I want to help you understand how it works, what the numbers look like, and whether you might qualify.
Who qualifies?
Here are the key eligibility rules you should know:
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You must be an individual (not a corporation or partnership) buying the new home for your own use as your primary residence, or for a relation (for example: child, parent, spouse) who uses it as their primary residence.
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The home must be new or substantially renovated. If you purchased from a builder, or built/renovated and then lived in it, you may qualify.
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The home must be in Canada (and for your region, Ontario) and the tax (GST/HST) must have been paid on the purchase or building of the home.
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For Ontario specifically: the home must be used as the primary place of residence of you (or your relation) and located in Ontario.
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If you bought from a builder, you’ll fill out Form GST190 (for houses purchased from a builder) or if you built/renovated yourself, you’d fill out Form GST191.
One important note: If the home is not going to be your primary place of residence (for example, you immediately rent it out or it’s purely an investment), the rebate generally won’t apply.
How much rebate can you get? (with examples)
Here’s where the numbers come in — and where the Ontario market (Mississauga, Brampton, Caledon) fact-checking becomes very useful.
Federal Part
For the federal part (the 5 % GST or part of HST), the CRA’s guide says you may recover some of what you paid if the home’s fair market value (land + building) when completed is below certain thresholds.
For example, some tax-advisor websites note:
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If the home costs $350,000 or less, you might get about 36% of the GST you paid (up to about $6,300).
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If the value is between $350,000 and $450,000, the rebate starts to reduce/phase‐out.
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If the value is $450,000 or more, the federal part may be not available.
Ontario (Provincial) Part
Since we’re in Ontario: there’s also the provincial new-housing rebate for the provincial portion of HST. Some important things:
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If you qualify for the federal rebate, you can also claim the provincial part.
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For homes bought from a builder in Ontario: the maximum provincial rebate is $24,000.
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Unlike the federal part, the Ontario rebate isn’t strictly phased out at $450,000 home-value — you may still claim up to that maximum rebate even if your home is worth more, as long as the other conditions are met.
Real-life example
Let’s say you buy a brand new 4-bed detached home in Mississauga for $800,000 (land + building). You plan to live in it as your primary residence.
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On the federal side: Because the value is above $450,000, the federal new‐housing rebate may not apply (or will be extremely limited).
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On the Ontario side: You may still qualify for the provincial portion up to the max of $24,000 (if you meet all the other eligibility criteria).
Another example: You buy a newly built condo in Brampton for $400,000.
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Federal side: Since the value is under $450,000, you might qualify. If GST paid was say $20,000 (for simplicity), 36% would give ~$7,200-ish (depending on actual GST amount) up to the CRA’s schedule.
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Provincial side: You’d apply for up to $24,000 — since your value is under the threshold this example is favourable.
Why this matters for new-home buyers in Mississauga / Brampton / Caledon
As someone who has worked with builder and pre-construction homes in this region for years, I’ve seen buyers focus a lot on purchase price, location, finishes — but sometimes overlook how tax, closing costs, and rebates interplay.
Here’s why you should keep this rebate in mind:
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It can improve your overall cost — knowing you might recover some tax changes how you look at “net cost”.
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It may influence how you negotiate or review builder/contract-documents — some builders will incorporate the rebate amount into the purchase price or handle the rebate on your behalf. (Important to ask.)
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It’s a piece of the puzzle when comparing new-build vs resale: new homes often include HST in the cost —so knowing your rebate angle helps.
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Deadline awareness: You don’t want to miss the time window to apply.
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Primary residence requirement: If you buy new construction and immediately rent it out, the rebate might not apply — I’ve seen this in practice.
What to watch out for / common pitfalls
A few important cautions so you don’t get surprised:
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Being co-owner with someone not eligible: if you share ownership with someone who is not an individual or not eligible, it could disqualify the rebate.
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Not using the home as a primary residence soon enough or having an immediate rental may invalidate the rebate.
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If you bought a previously owned home, or it’s purely a rental/investment property, the new-housing rebate doesn’t apply.
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You’ll need to fill out the correct forms (GST190, GST191) and have records — builder invoices, contracts, tax paid evidence etc.
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Be clear on “substantial renovation” definition if you renovated. It’s not just cosmetic upgrades; for eligibility the CRA uses strict definitions.
Next steps if you’re considering a new builder-home
If you are currently looking at a new home—particularly a builder or pre-construction home in Mississauga, Brampton, or Caledon—here’s a simple action list:
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Ask the builder or your salesperson: “How is the HST/GST rebate being handled?” Are they crediting it back to you or passing it on?
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Check that the home will be your primary residence (or that of a relation) and not just an investment.
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Estimate the tax paid: verify how much GST/HST is built into the purchase price (or that you will pay at closing).
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Check your home’s value estimate (land + building) at the time the tax became payable — this helps determine eligibility.
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Collect and keep all relevant documentation: purchase agreement, receipts for tax paid, builder invoices, closing statements.
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When you close, mark your calendar or set up reminder about the rebate application deadline (some CRA forms must be filed within a certain timeframe).
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If you like, we can run a cost-net-of-rebate analysis together — I’d be happy to help you estimate what your “effective cost” looks like after the rebate.
Final word
In a market like the GTA (Mississauga, Brampton, Caledon) where new-build homes, builder homes and pre-construction are significant components of inventory, every dollar counts. The new-housing rebate offered by the CRA isn’t always front-of-mind, but knowing it and planning for it can give you an advantage — both in understanding your cost and budget and in negotiating or comparing options.
If you’re looking at a new home and want someone who’s worked hands-on with builder homes (and rebates) in our region to walk you through the numbers and implications, I’d be happy to help. My goal is to educate and empower you (rather than push you into anything). Let me know when you’re ready, and we’ll crunch the numbers together.
