Co-Owners and the GST/HST New Housing Rebate: Who Claims in Canada?

Spouses, siblings or friends who buy a new home together often ask whether each owner gets a rebate or files separately. Under the federal GST/HST new housing rebate, the answer is simpler than many expect.

This article explains how co-owners are treated, what can block a claim, and how first-time buyer rules apply to couples. Your facts matter, so a lawyer or accountant can confirm the details.

This article covers Canadian federal tax law, which applies in every province.

One claim for the home

Only one individual can claim the rebate even if more than one individual owns the house. The rebate is paid to the claimant, and the other owners are listed as co-owners on Form GST190.

The rebate can apply if all other conditions are met by at least one of the individuals. So the owners do not each file for their own share; they agree on who will make the claim.

It helps to settle who the claimant will be before closing. The builder may pay the rebate to the buyer or credit it against the price, and if it does, the buyer does not send the application; the builder files it with its return. Only the builder who sells the house can do this. An assignor who sold the buyer the purchase agreement cannot, so an assignee must claim directly from CRA on Form GST190.

When a co-owner can block the claim

Only individuals can claim, and an individual cannot claim if a partnership or corporation co-owns the house. If you plan to buy with a company, the base rebate is generally unavailable.

A corporation that buys a new unit to rent out may have separate relief through the new residential rental property rebate on Form GST524, if the purchase was taxable and it is not the builder.

Residence and price conditions

• The home must be acquired as the primary place of residence of the buyer or a relation.
• The first occupant must be the buyer or a relation, or the buyer must make an exempt sale of the home before anyone occupies it.
• Siblings, spouses and common-law partners are relations, as are parents and children; for this rebate only, former spouses and former common-law partners also count.
• Friends are not on the list of relations, so the occupancy rule matters if the first occupant is a friend.
• The intent to use the home as a primary place of residence must be evident at the outset. A recreational cottage, an investment property, or a home planned for a more distant use such as retirement does not qualify.
• A parent buying for an adult child or other relation who will live there may qualify, if all other conditions are met.
• For a builder purchase, total consideration must be under $450,000, with a phase-out above $350,000.

How much the rebate is

The rebate is a percentage of the tax paid, not of the price. CRA's guide says to multiply the GST or federal HST paid by 36%, capped at $6,300. If total consideration is $350,000 or less, the rebate is the lesser of $6,300 and 36% of the GST (or federal part of HST) paid. Between $350,000 and $450,000 it phases out, and at $450,000 or more it is nil.

For example, with 5% GST paid on a $400,000 home, the rebate is $3,150. Because only one individual can claim, adding more owners to the title does not create a second rebate.

First-time buyer rebate and couples

The first-time home buyers' rebate looks at each person's history. The buyer must be at least 18 and a Canadian citizen or permanent resident, and must not have lived in a home they owned as a primary residence in the current calendar year or previous four years.

A spouse or common-law partner's prior home ownership in that period and any earlier first-time buyer rebate they received count against the buyer. Whether a particular co-owner arrangement works is a point to confirm with a lawyer or accountant, since it depends on the facts and on who signs the agreement.

For a new home with total consideration of $1,000,000 or less, this rebate is the lesser of $50,000 and the tax paid, minus any base rebate. Between $1,000,000 and $1,500,000 it phases out, and at $1,500,000 or more it is nil. The agreement of purchase and sale must be entered into after March 19, 2025 and before 2031, and ownership must transfer before 2036. A buyer who fails the first-time buyer test may still qualify for the regular rebate, and the first-time buyer rebate can be claimed in addition to it as a top-up.

What to do next

• Agree in advance which individual will be the claimant.
• Confirm that no corporation or partnership is a co-owner.
• Gather the statement of adjustments and Form GST190.
• Check the two-year deadline after ownership transfers for a builder purchase.
• Keep supporting records for six years.

If the builder does not pay or credit the rebate, you generally have up to two years from the date ownership was transferred to claim it on Form GST190. A missed two-year deadline on a builder purchase generally means the rebate is lost. Send the form, Form RC7190-ON if you are claiming an Ontario rebate, and a copy of the statement of adjustments. Properties in Sudbury/Nickel Belt, Toronto (Centre, East, West, North) or Barrie go to the Sudbury Tax Centre, and properties elsewhere in Canada go to the Prince Edward Island Tax Centre. An individual who receives a rebate they were not entitled to must repay it.

Frequently asked questions