The Government of Canada implemented the GST rebate in 1991, but new to our industry is the First-time home buyers’ rebate (FTHB rebate). This article provides an overview of the new rebate and outlines the requirements for listing a new home on the Board’s MLS^® System.

First-time home buyers’ rebate

To qualify for this rebate, you must:

• Be at least 18 years of age
• Be a Canadian citizen or permanent resident
• Not have lived in a home that you, your spouse or your common-law partner owned or jointly owned, whether in or outside Canada, as your primary residence at any time during the calendar year or in the previous four calendar years
• Not have previously received an FTHB GST/HST rebate, and nor has your spouse or common-law partner

This rebate applies to new or substantially renovated homes intended as the individual’s primary residence. Depending on the value of the home, the individual could recover up to 100 per cent of the GST paid, to a maximum of $50,000.

• For homes valued at $1 million or less, the rebate is up to 100 per cent (maximum $50,000)
• For homes valued Between $1 million and $1.5 million, the rebate is gradually reduced
• For homes valued at $1.5 million or more, no rebate is available.

Eligible home buyers may benefit from both the FTHB rebate and the GST rebate on a new home.

New home listings on the MLS^® System

When working with a new home builder and listing a property on the MLS^® System, the same guidelines apply as those for the GST Rebate.

As outlined in the CREB^® Rules, GST, where applicable, must be included in the list price on all MLS^® listings for residential property. The list price for a new home must include GST before any FTHB and GST rebates are applied.

Once the purchase agreement has been signed, and before marking the listing as sold, you must complete the following steps in order: 

1. Enter the following in the Private Remarks:
“Sold price reflects purchase price before FTHB (and GST rebate, if applicable).”

2. Enter the final selling price, including any applicable tax rebates, in the Close Price field.

Example:

A property listed for $750,000 and sold for $750,000:

• Step 1: Add the following to the Private Remarks field: 

“Sold price reflects purchase price before FTHB (and GST rebate, if applicable).”

Step 2: Enter $750,000 in the Close Price field when updating the listing status to sold

If you have any questions about listing or reporting requirements for a new home, contact the Member Practice team at advice@creb.ca.