Canada’s $50,000 GST Rebate On New Homes Just Cleared The Senate

Bill C-4 (short title: the Making Life More Affordable for Canadians Act) passed third reading in the Senate on February 26, 2026. The bill is not law yet. The next step is the House of Commons considering any Senate amendments, and only after that can the bill receive Royal Assent.

This matters because one part of Bill C-4 would introduce a new GST/HST rebate for first-time home buyers who buy (or build) a new home. Some headlines call this “GST removed” because the rebate could be as high as $50,000 on a $1 million new home.

Where Bill C-4 stands now (as of March 1, 2026)

According to Parliament’s official bill tracker, Bill C-4’s current status is “consideration in the House of Commons of amendments made by the Senate”, following the Senate’s message sent on February 26, 2026.

Until Royal Assent happens, the rebate is still proposed (meaning it can change, and CRA cannot treat it as in force yet).

What the First-Time Home Buyers’ GST/HST rebate would do

CRA describes a proposed First-Time Home Buyers’ (FTHB) GST/HST rebate that would:

• Provide up to 100% of the GST (up to $50,000) for eligible new homes up to $1 million

• Provide a reduced rebate for homes priced between $1 million and $1.5 million

• Provide no rebate at $1.5 million and above

This is different from the existing federal new housing rebate, which has much lower maximum amounts in many cases.

Who this would apply to (basic eligibility)

Based on the federal description, the rebate is designed for first-time buyers who are acquiring a new or substantially renovated home as their primary place of residence (not an investment property). It may also apply in cases like owner-built homes and some co-op share purchases.

CRA also lists timing rules tied to the build and purchase agreement dates (for example, agreements entered on or after May 27, 2025 and before 2031, with construction and completion windows).

How much could you actually save?

Federal (GST portion):

• Up to $50,000 on eligible homes up to $1,000,000

• Example CRA uses: a $1.25M home would be around 50% of the maximum (about $25,000) under the phase-out idea.

Ontario “up to $130,000” claims (important context):
Ontario has publicly described a plan to mirror the federal approach by temporarily removing the 8% provincial portion of HST for qualifying first-time buyers on eligible new homes (with phase-out). Ontario also has an existing Ontario new housing rebate (with its own rules and maximum). That’s why some estimates say up to $130,000 total ($50,000 federal + $80,000 Ontario on a $1M home). However, Ontario has framed this as steps/intent and implementation is tied to the federal measure coming into force.

When would you claim it?

If Bill C-4 becomes law, CRA would administer the rebate. In many new-build situations, rebates can be claimed directly or assigned through the builder (depending on the program rules). For now, treat this as planning information, not a guaranteed refund date, until Royal Assent and final CRA instructions.

FAQ

Is Bill C-4 law now?
No. It passed the Senate on February 26, 2026, and is now back with the House to deal with Senate amendments before Royal Assent.

Does this apply to resale homes?
The proposed rebate is focused on newly built or substantially renovated homes (and certain related situations like owner-built or co-op shares), not typical resale purchases.

What if I signed my purchase agreement before May 27, 2025?
CRA’s proposed timing rules reference agreements entered on or after May 27, 2025 (and before 2031). Earlier agreements may not qualify for this new rebate (but other rebates may exist depending on your situation).

Can newcomers qualify?
The key issue is whether you meet the first-time buyer definition and other conditions (like primary residence use). Immigration status rules can be complex—check the final CRA guidance once the law is in force.

Will I definitely get $50,000?
No. $50,000 is the maximum and depends on the home price, eligibility, and final rules once passed.

Reality check (before you plan around this)

• Not law yet: until Royal Assent, the rebate is still proposed and can change.

• Not for every buyer: it targets first-time buyers and new builds/substantial renovations, mainly for primary residence use.

• Price and supply risk: rebates can help with tax, but they don’t guarantee affordability or availability of new homes.

• Closing math can still be tight: lender rules, down payment, and total closing costs still matter—don’t rely on a refund to “make it work” unless you have confirmed timelines.

 

Official government sources (outlinks)