New Home Rebates - Federal - Provincial

New Home Rebates

There are rebates available from the federal and provincial governments in support of home ownership, for which you may be eligible.

GST Rebate

When you buy a new house or a substantially renovated one as your primary place of residence, you may be entitled to a rebate of part of the federal goods and services tax. You can receive several thousands of dollars, although the amount decreases when houses cost more than $350,000 and disappears on houses costing more than $450,000. However, you should be aware that in the competitive GTA housing market, the tax is normally included in the sales price. As a result, the rebate is already accounted for, and in the purchase agreement you sign over the rebate to the builder

Note: If you purchased your new home prior to July 1, 2006 and will be taking possession after July 1, 2006 you may be eligible for an additional GST rebate of up to one per cent. Click here for more information and rebate form from the Canada Revenue Agency (Posted June 2006)
Click here for more information, including a handy table showing the transitional adjustment on different house prices. For an information sheet from Canada Revenue Agency click here.
Land Transfer Tax Rebate

First-time buyers of newly-built homes in Ontario, with certain restrictions, may apply for a rebate for part of their land transfer tax. The maximum rebate is $2,000, which is roughly the amount payable on homes priced up to $240,000, including GST. This special program does not apply to resale homes. For more information, call 1-800-263-7965.

Additional Rebates
In addition to high ratio mortgages and using RRSP funds for down payments, both discussed earlier, you may also be able to take advantage of a tax deduction for your moving expenses.