Applicable on brand new owner-occupied homes where purchase price is less than $450,000. The Maximum rebate is $8,750 on a home priced a $350,000. For homes priced between $350,000 and $450,000 there is a formula, which gradually reduces the rebate. The rebate may either be obtained by the purchaser on application to Revenue Canada after the completion of the purchase of the home, or may be applied for through the vendor and assigned to the vendor (where vendor agrees) thereby reducing the amount of the tax payable on completion of the purchase.

Calculation of Rebate:

1) Where purchase price of the new home is $350,000 or less the GST rebate is 36% of the actual GST paid, or to be paid, to a maximum of $8,750.

For example:
Purchase price excluding GST: $ 347,000.00
GST = 7% x $347,000.00: + 24,290.00
Rebate = 36% x $24,290.00: – 8,744.40
$362,546.60

2) Where purchase price of new home is between $350,000 and $450,000 the new home rebate is calculated as follows:

($8,750 x ($450,000 – Selling price of new home)) / 100

For example:
Selling price is $398,000 not including GST:
Rebate = ($8,750 x ($450,000 – $398,000))/ 100= $4,550.00

Total price plus net GST = $398,000.00
+ 27,860.00 (7% x 398,000)
– 4,550.00 (rebate)
$421,310.00

3) Where individuals buy a vacant lot and build there own home or contract with someone to build their home, a GST rebate is available. The calculation depends on whether GST was paid on the vacant lot when purchased or not.

Where the individual buys a vacant lot and pays GST on the lot price, the GST rebate is equal to 2.5% of the total tax paid on the lot where lot is less than $350,000 to a maximum of $8,750.

Where no GST is paid on the vacant lot, the GST rebate is 10% of the GST paid on construction costs to a maximum of $1,750.

An owner has 2 years from the earlier of the date the home is first occupied (or ownership is transferred to another individual before occupation) or the day construction of the home is completed.