Updated July 2026. The federal First-Time Home Buyers’ GST Rebate is now law: Bill C-4 received Royal Assent on March 12, 2026, and the CRA is processing claims. Eligible first-time buyers can recover up to $50,000 of GST on a newly built home. Here’s who qualifies, how the phase-out works, and the traps in the fine print.
What the Rebate Is
The rebate refunds the GST (or the federal portion of HST) paid on a new home — newly constructed or substantially renovated — bought from a builder. It works on a sliding scale:
- Home price up to $1 million: 100% of the federal GST refunded — worth up to $50,000 on a $1M home
- $1 million to $1.5 million: the rebate phases out gradually
- Above $1.5 million: no rebate
Resale homes don’t qualify — GST isn’t charged on them anyway. In Ontario, note that this covers only the 5% federal portion of the 13% HST; the provincial portion has its own existing rebate rules.
Who Counts as a First-Time Buyer
Broadly, you (and generally your spouse or common-law partner) must not have owned and lived in a home — in Canada or abroad — in the current year or the previous four calendar years. You must also be at least 18 and a Canadian citizen or permanent resident, and intend to use the home as your primary residence.
The Dates That Matter
- The purchase agreement with the builder must be signed after March 19, 2025 and before 2031 (an amendment extended coverage back to agreements from spring 2025, so buyers who signed before the bill passed can still qualify)
- Construction generally must begin before 2031 and be substantially completed by the end of 2036
If you bought a pre-construction home in 2025: check your agreement date. Many buyers who signed after March 19, 2025 qualify retroactively and can claim now that the law is in force.
How to Claim
In most builder purchases, the builder credits the rebate directly against your purchase price — ask your builder and lawyer to confirm they’re applying the FTHB rebate rather than only the older GST/HST New Housing Rebate. Otherwise, you file the claim with the CRA after closing. Details and forms are on the CRA’s official FTHB GST/HST rebate page.
What It’s Actually Worth
On a $800,000 new build: 5% GST = $40,000, fully refunded. On a $1.2M home the rebate is partial (the phase-out removes roughly $10,000 of rebate for every $100,000 above $1M). Combined with the existing Home Buyers’ Plan (RRSP withdrawals), the First Home Savings Account (FHSA), and the land-transfer-tax rebates some provinces offer first-time buyers, the stack of first-timer incentives is now substantial — but each has its own definition of “first-time buyer,” so verify each program separately.
Frequently Asked Questions
Does it apply to resale homes?
No — only new or substantially renovated homes bought from a builder, plus owner-built homes and qualifying co-op shares.
Can newcomers use it?
Permanent residents qualify if they meet the first-time-buyer test — but note that home ownership anywhere in the world in the past 4 years counts against you.
Both my spouse and I are on title — do we both need to be first-timers?
Generally the eligibility test looks at both spouses; if one spouse owned a home you lived in during the window, the claim can fail. Get advice from your real-estate lawyer before assuming eligibility.
Related Guides
Tax rules have detailed conditions; confirm your situation on the CRA pages linked above or with a tax professional before relying on the rebate in your purchase math.
