The Canada Revenue Agency said it is accepting applications for the new first-time home buyers GST/HST rebate.
The rebate provides eligible first-time buyers with a full or partial rebate of the GST, or the federal part of the HST, on newly constructed or substantially renovated homes.
CRA said eligible individuals could receive up to $50,000. The size of the benefit depends on the home, the tax paid, and whether the buyer meets the first-time buyer conditions.
For homes purchased from a builder, CRA said builders can credit the rebate at closing in a manner similar to the existing GST/HST new housing rebate. If the builder does not credit it, the buyer can apply directly to CRA using a CRA account or Form GST190.
Owner-built homes are also covered through a direct application process. CRA said the usual time limit to apply is within two years of taking ownership or finishing construction.
The distinction between a credit at closing and a later CRA application matters for cash flow. A closing credit reduces the amount due at purchase, while a direct application requires the buyer to wait for CRA processing.
The rebate is part of the federal housing-affordability package aimed at reducing tax costs for first-time buyers of new housing supply.