However, GST is applicable on the sale of a new home. If GST is included in the purchase price and the builder is offering a rebate the buyer will be required to assign the rebate offered by the federal government back to the builder.

To qualify for the rebate the buyer must require the new home for his or her own personal use. If the buyer does not qualify for the rebate, the agreement will normally require the buyer to refund to the builder an amount equal to what the rebate would have been.