HST New Housing Rebate for Modular Homes and Garden Suites

Short answer: The GST/HST new housing rebate can apply to a new modular home and to a detached garden suite, but only when an individual builds or buys it as their own or a relation's primary place of residence and the other CRA conditions are met. The Canada Revenue Agency says a mobile home, including a modular home, can qualify, and CRA bulletin B-092 says a self-contained suite in its own building is treated as a newly constructed residential complex. This page quotes official rules only; confirm your eligibility with the CRA.

Key takeaways

How the new housing rebate works

In Ontario, a new home carries 13% HST: a 5% federal part and an 8% provincial part. The CRA's new housing rebate page says the GST/HST new housing rebate lets an individual recover some of the GST or federal part of the HST paid on a new or substantially renovated house for use as their or their relation's primary place of residence, when all other conditions are met. Separate provincial rebates may be available for the provincial part whether or not the federal rebate is.

The CRA lists two main routes:

• Houses purchased from a builder: you buy a new or substantially renovated house, including the land, from a builder. The CRA says this includes buying a new mobile or floating home from a builder, which includes the manufacturer or vendor.
• Owner-built houses: you built a house on land you already own or lease, or hired someone else to build it for you; you substantially renovated your existing house (at least 90% of the interior removed or replaced); you built a major addition together with a renovation; or you converted a commercial building you own into your house.

For owner-built houses, the CRA says the fair market value of the house when construction is substantially completed must be less than $450,000 for the existing federal rebate. In Ontario, the CRA notes you may still claim the Ontario new housing rebate, up to a maximum of $24,000, when the federal part is unavailable only because the value is too high. Those dollar figures are CRA program limits, not Modular X pricing.

Modular and factory-built homes

The CRA's Guide RC4028 says a house, for the new housing rebate, generally includes a detached or semi-detached house, a duplex, a condominium unit, a townhouse, a co-op unit, a mobile home (including a modular home) and a floating home, plus the land reasonably necessary for its use as a residence, generally up to half a hectare.

For a new mobile or modular home used as your or your relation's primary place of residence, the CRA says you may have the option to treat the home either as purchased from a builder or as an owner-built house when you claim. Which route fits depends on facts such as who owns the land and who you paid. If you are new to the terms, read what a modular home is in Ontario and manufactured vs modular vs mobile homes.

Garden suites and other secondary units

CRA Technical Information Bulletin B-092 has a section on guest and granny suites. It says building a guest or granny suite may be eligible for the new housing rebate where:

• the suite is built as an addition to the existing building and the existing building is substantially renovated;
• the suite is built as an addition and the addition is, or is intended to be, owned under separate title; or
• a self-contained suite is detached from the house so that it is its own building, in which case the rebate is based on a newly constructed residential complex rather than a substantial renovation.

B-092's example is an owner who builds a separate, self-contained granny suite on his lot as his mother's primary place of residence, not under separate title, with his mother as the first person to occupy it. The CRA says he is eligible to claim the new housing rebate. A second example, a bedroom and bathroom added over a detached garage with no kitchen, does not qualify, because without kitchen facilities it is not a self-contained residential complex.

Two points follow from the official text. First, the rebate is tied to a primary place of residence for you or a relation; the CRA treats units built for other purposes under different rules, so this page does not cover them. Second, a suite carved out of an existing house usually does not qualify on its own. For what counts as a garden suite in zoning terms, see additional residential units in Ontario and prefab and modular garden suites in Ontario. A garden suite for a senior or a relative with a disability may also fit the separate Multigenerational Home Renovation Tax Credit.

Who can claim

• Individuals only. The CRA says the GST/HST new housing rebate is not available to a corporation or a partnership.
• Primary place of residence. RC4028 says this is generally a house you own and intend to live in on a permanent basis, and that your intent must be evident at the outset of buying, building or renovating.
• Relation. CRA Notice 346 says a relation is someone related by blood, marriage, common-law partnership or adoption; blood relation is limited to parents, children or other descendants, or siblings, and a former spouse or common-law partner also counts.
• First occupant. For owner-built homes, CRA Memorandum 19.3.4 says you or your relation must be the first person to occupy the unit after construction began.

First-time home buyers' GST/HST rebate

The CRA says the first-time home buyers' (FTHB) GST/HST rebate has received Royal Assent. For owner-built homes, the CRA says it may apply if you meet the owner-built rebate rules (or would if the $450,000 value test were $1.5 million), construction begins on or after March 20, 2025 and before 2031, it is substantially completed before 2036, it is for use as your own primary place of residence, you are the first to occupy it, and neither you nor your spouse or common-law partner has received an FTHB rebate before. You must be a first-time home buyer under the CRA's definition. Those figures are CRA program limits, not Modular X pricing.

Ontario rebates for the provincial part

CRA Notice 346 (August 2026) says the temporary Ontario enhanced new housing rebate (ENHR), together with the Ontario new housing rebate, provides combined relief of up to $80,000 of the 8% provincial part of the HST on a new or substantially renovated home valued up to $1,850,000, for use as the individual's or their relation's primary place of residence.

For owner-built homes, Notice 346 says the ENHR may be available where you meet the Ontario new housing rebate conditions and:

• construction or substantial renovation begins on or after April 1, 2026, and on or before March 31, 2027;
• it is substantially completed before 2030;
• its fair market value at substantial completion is less than $1,850,000; and
• it is built for use as your or your relation's primary place of residence.

The notice also describes the Ontario new home affordability payment (ONHAP), administered by the Province, of up to $50,000 for individuals also entitled to the ENHR, reduced by any federal new housing or FTHB rebate. These are CRA and provincial program limits, not Modular X pricing.

Forms and deadlines

• Owner-built (including hiring a builder on your own land): Form GST191 and Form GST191-WS, Construction Summary Worksheet, plus Form RC7191-ON for the Ontario provincial rebates.
• Bought from a builder: Form GST190, plus Form RC7190-ON in Ontario.
• Records: the CRA says to keep original invoices and the documents used to fill out the forms for six years. It does not accept estimates or quotes as proof.
• Deadlines: owner-built claims generally must be filed within two years after a base date tied to substantial completion or first occupancy. B-092 and the CRA's owner-built filing page explain how the base date is set.
• ENHR processing: the CRA's GST191 page says claims that include the Ontario ENHR are processed starting in fall 2026, and could only be filed by mail until online filing opened. Check the form page for the current status.

Modular X designs, permits and builds garden and laneway suites in modules. We do not give tax advice or file rebate claims; confirm eligibility with the CRA or a qualified tax professional. Before any design, a free feasibility check confirms what your lot allows. For project budgeting, see garden suite cost in Ontario, the garden suites hub or the guides hub.

FAQs

Sources

• Canada Revenue Agency — GST/HST new housing rebate
• CRA — Guide RC4028, GST/HST New Housing Rebate
• CRA — Technical Information Bulletin B-092, Substantial Renovations and the GST/HST New Housing Rebate
• CRA — GST/HST Memorandum 19.3.4, Rebate for Owner-Built Homes
• CRA — First-time home buyers' GST/HST rebate: who can apply
• CRA — Applying for the FTHB rebate: owner-built home
• CRA — GST/HST Notice 346, Ontario Enhanced New Housing Rebate (August 2026)
• CRA — Form GST191, New Housing Rebate Application for Owner-Built Houses

Disclaimer: Figures cited are market estimates provided for information only and are not a quote. Municipal rules, fees, and programs change — always verify current requirements with your local authority. Modular X provides exact pricing only after a site-specific feasibility review.