Understanding GST/HST Rebates on New Homes in Canada
When you buy a newly built home or pre-construction condo, GST or HST applies, but you may be eligible for a rebate. These rebates can reduce your out-of-pocket costs by thousands.
Introduction
Unlike resale homes, new builds are subject to federal GST or a blended HST. However, first-time buyers and those purchasing for personal use may qualify for significant rebates, if you meet the conditions and apply properly.
- The federal GST rebate refunds up to 36% of the 5% GST on homes under $350,000:
The full rebate is available for homes priced below $350,000. It gradually phases out for homes between $350,000 and $450,000. No rebate is available above $450,000, unless you’re claiming under a provincial program or using special exemptions. - In HST provinces like Ontario and BC, provincial portions may also be rebated:
Ontario offers a rebate of up to $24,000 on the provincial portion of HST for principal residences under $350,000. This rebate also phases out on higher-priced homes, but some builders include it in the advertised price, while others do not. - You must use the property as your primary residence to qualify:
If the home is intended as a rental or investment property, you must apply under the “New Residential Rental Property Rebate,” which has different criteria. Using the wrong form can result in delays or denials. - The rebate is typically assigned to the builder on your behalf:
Most buyers see the rebate already factored into the purchase price. However, if you’re building your own home or buying from a smaller developer, you may need to pay the full tax upfront and apply for the rebate yourself. - Applications must be submitted within two years of possession:
Delaying your claim beyond the deadline could cost you thousands. Make sure to gather invoices, contracts, and occupancy documentation in advance, and get professional help if needed.
Conclusion
GST/HST rebates are a critical part of budgeting for new construction. Knowing the rules, and whether the rebate is already included, can significantly affect your affordability and closing costs.
Still have Questions? Book a free call with Malcolm the Mortgage Guy
How Your Credit Score Affects Mortgage Interest Rates in Canada
Your credit score doesn’t just affect approval, it directly impacts the rate you’re offered. Higher scores get better pricing, lower insurance premiums, and more lender options.
Introduction
Credit scores are a central part of mortgage underwriting. They influence not only whether you get approved but how much you’ll pay over the life of your loan. Even a 20-point improvement can make a noticeable difference in your rate.
- Borrowers with scores above 760 qualify for the best available rates:
Lenders view these borrowers as low risk, and often offer their promotional or “floor” rates. This can mean a difference of 0.30%–0.60% compared to someone in the mid-600s. Over a five-year term, that’s thousands in interest saved. - Scores between 680 and 759 are generally considered A-lender eligible:
While you’ll still access mainstream products, you may not get top-tier pricing. Some lenders use tiered pricing models, where small drops in score lead to incremental rate increases. Insurance premiums may also be affected for those with lower A-range scores. - Scores between 600 and 679 push you into B-lender territory:
You can still qualify, but rates are typically 1%–2% higher and include lender fees. These mortgages are often interest-only or shorter term, and your goal should be to rebuild credit and transition to an A-lender within 1–3 years. - Scores under 600 limit your options to private lending or MICs:
At this level, rates may range from 8%–12% or more. Loans are usually interest-only and come with large upfront fees. It’s crucial to treat this as a temporary solution while you work to improve your score. - Rate holds and approvals may be revoked if your score drops before closing:
Lenders often re-pull your credit before final funding. A new car loan, missed payment, or credit max-out during this time can bump you into a higher pricing tier, or trigger a decline. Maintain discipline until after your mortgage is funded.
Conclusion
Your credit score is more than just a number, it’s a pricing tool that affects how much mortgage you can afford. Keeping it healthy opens the door to better rates and more flexible financing options.
Still have Questions? Book a free call with Malcolm the Mortgage Guy
Indigenous Housing Programs and Support Options in Canada
Canada offers unique mortgage and housing programs for Indigenous individuals, families, and communities, both on-reserve and off-reserve.
Introduction
Indigenous homebuyers and communities face distinct challenges in accessing financing. In response, federal and provincial governments, as well as CMHC, offer targeted supports, from down payment assistance to band-backed loans and construction funding.
- CMHC’s On-Reserve Non-Profit Housing Program supports band-owned housing:
This initiative helps First Nations develop rental housing on-reserve. CMHC contributes funding for construction or renovation, and the band manages the housing long-term. The goal is to increase housing supply and improve living standards. - The First Nations Market Housing Fund (FNMHF) helps backstop risk for lenders:
This fund allows bands to guarantee housing loans for individual members living on reserve. Because land is held collectively, standard mortgage security is challenging, FNMHF bridges this gap and encourages lender participation. - Off-reserve Indigenous buyers can access all mainstream programs, plus provincial grants:
In provinces like Ontario and BC, Indigenous households may qualify for first-time buyer supports, rental supplements, and closing cost assistance. Some cities also offer priority access to affordable housing units or low-income homeownership models. - CMHC offers loan insurance flexibility for Indigenous borrowers:
For eligible applicants, CMHC may provide high-ratio insurance for on-reserve housing, renovation loans, and multi-unit development. These are critical for accessing affordable mortgage terms in underdeveloped or rural areas. - Indigenous housing organizations play a key role in education and access:
Groups like the Assembly of First Nations, M’akola Housing Society, and Indigenous Services Canada offer education, grants, and culturally tailored supports. They are often the first point of contact for navigating complex applications.
Conclusion
Indigenous borrowers have access to specialized housing supports, but navigating them takes knowledge and coordination. These programs are vital tools in closing the homeownership gap across communities.
Still have Questions? Book a free call with Malcolm the Mortgage Guy
Green Home Rebates and Energy Efficiency Incentives in Canada
Going green can save you money. From rebates to insured mortgage discounts, there are several programs that reward energy-efficient upgrades and eco-conscious buying.
Introduction
Homeowners and buyers in Canada can benefit from financial incentives for building or upgrading to greener homes. These include rebates, tax credits, and even lower mortgage insurance premiums through CMHC and other insurers.
- CMHC offers a 25% refund on mortgage insurance for energy-efficient homes:
Buyers of new homes rated 82 or higher on EnerGuide, or those upgrading existing homes, can receive a partial premium refund. The home must meet energy efficiency benchmarks, and documentation must be submitted within two years of closing. - The Greener Homes Grant provides up to $5,000 for retrofits:
This federal program covers home upgrades like insulation, heat pumps, windows, and solar panels. It also includes up to $600 for an energy audit. You must apply and complete assessments before starting the work to qualify. - Provincial and utility-based rebates add additional layers of support:
Ontario’s Enbridge Home Efficiency Rebate Plus, BC’s CleanBC program, and Alberta’s Energy Savings for Business all offer rebates that stack with federal programs. Availability varies, so always check local offerings before beginning renovations. - Green mortgages offer financing specifically for energy-efficient homes:
Some lenders offer green mortgage products with preferred rates or higher loan amounts for certified homes. This includes new builds with Net Zero certification or homes undergoing substantial upgrades with efficiency benchmarks. - Upgrades must meet specific technical criteria and be verified:
Most programs require an EnerGuide rating, certified installer receipts, or third-party energy audits. Keeping meticulous records ensures you receive the full benefits and simplifies the application process.
Conclusion
Energy-efficient homes are more than environmentally friendly, they’re financially rewarding. With layered incentives from multiple sources, going green pays off in both comfort and cost savings.
Still have Questions? Book a free call with Malcolm the Mortgage Guy
How to Read Real Estate Cycles and Time Your Purchase
Real estate moves in cycles, booms, corrections, recoveries, and peaks. Knowing where the market stands can help you make a more strategic buying decision.
Introduction
The Canadian housing market isn’t random, it follows a pattern of cycles influenced by interest rates, supply, demand, and economic signals. Understanding these stages can help you avoid buying at a peak or missing out on early opportunities.
- The four stages of the real estate cycle are recovery, expansion, hyper-supply, and recession:
Recovery sees slow growth and bargain prices; expansion brings rising demand and prices; hyper-supply occurs when listings outpace buyers; and recession results in price stagnation or decline. Timing your buy within these phases can dramatically affect your long-term equity. - Interest rates are a key driver of market movement:
Falling rates typically trigger expansion, while rising rates cool demand. Watching Bank of Canada policy, bond yields, and inflation reports gives insight into where the cycle may be heading next. - Inventory and sales ratios help identify supply/demand imbalances:
A low months-of-inventory number (under 3) signals a seller’s market; a high number (over 6) suggests a buyer’s market. Sales-to-new-listings ratios and average days on market also offer clues about market momentum. - Economic data, employment, GDP, immigration, adds context:
Housing doesn’t move in isolation. Strong job growth, population increases, and business confidence all contribute to market expansion. Conversely, job losses or political uncertainty can trigger downturns. - You don’t need to time the bottom perfectly to buy smart:
Trying to predict the absolute bottom or top is risky. Focus instead on affordability, stability, and long-term value. Buying at a plateau with manageable payments is often better than waiting endlessly for the “perfect” dip.
Conclusion
Market cycles are real, but you don’t need a crystal ball. With the right information and expert guidance, you can make a well-timed purchase that fits your life, not just the charts.
Still have Questions? Book a free call with Malcolm the Mortgage Guy
Open vs. Closed Morrtgages
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Conclusion
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High-ratio vs. Conventional Mortgages
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Conclusion
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What is a mortgage broker?
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How are mortgage penalties calculated?
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What does it mean to port a mortgage?
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