The GST/HST New Housing Rebate can return meaningful dollars on a new-build purchase. The key hurdle is often overlooked: proving you intended to use the property as your primary residence when you signed the purchase agreement. That’s the focus of section 254(2)(b) of the Excise Tax Act. Technical, yes—but manageable with the right preparation.

In Lisi v. The King (2025 TCC 106), two buyers sold soon after closing. CRA denied their rebates. The Tax Court looked past the quick sales and examined intention at the time of contract. Evidence carried the day—credible testimony, real-world steps toward occupancy, and a coherent narrative.

What works in practice:
Establish intent at agreement time (ETA s.254(2)(b)): utilities in your name, home insurance, internet, and change-of-address confirmations.
Show tangible steps: moving invoices, dated photos of furnished rooms, occupancy dates, appliance and renovation receipts.
Life happens—health issues, relationship changes, job moves. These do not erase original intent if your documentation is strong.
Expect CRA scrutiny. CRA must justify a denial with evidence; you should be ready with a consistent, well-organized file.

Bottom line: start documenting early and keep your records tight. If you anticipate a quick sale, shore up your file before listing. If CRA asks, respond with facts, not assumptions.

Samantha Gale at s.gale@privatelenderassociation.ca.