A New Look At GST/HST Housing Rebates

Federal tax legislation in Canada encourages the construction and renovation of residential homes through a range of tax rebates. However, eligibility for these rebates is not always clear-cut.

In the recent case at the Tax Court of Canada ("TCC") – Osagie v. The King, 2025 TCC 114 – the Court concluded that a homeowner was eligible to claim a GST/HST "new housing rebate" without satisfying all legislated conditions. This decision suggests that eligibility for GST/HST housing rebates may be broader than previously thought.

Osagie v. The King

In Osagie v. The King, a home buyer (the "Appellant") agreed to purchase a pre-construction home shortly before the onset of the COVID-19 pandemic. By the time construction was completed (right in the middle of the pandemic), the Appellant delayed moving in and leased the home to an unrelated third party for six months. The decision was driven by logistical and financial difficulties, along with a mistaken belief