Does this apply in Ontario where HST is charged?

Yes — the rebate covers the federal portion of HST (5%). The provincial portion is handled by a separate Ontario New Housing Rebate.

When do I receive the money?

When buying from a builder, the rebate is assigned to the builder at closing — you simply pay less out-of-pocket. For owner-built homes, you file a claim with the CRA after construction.

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Canada's First-Time Home Buyer GST Rebate: Save Up to $50,000

Q: I owned a home 6 years ago. Am I still a first-time buyer?

Possibly. The eligibility test only looks back at the current calendar year and the four preceding years. If you haven't owned during that window, you could qualify.

Bill C-4 received Royal Assent on March 12, 2026 — the First-Time Home Buyer GST Rebate is now law. If you're a first-time buyer purchasing a new home anywhere in Canada, you could save up to $50,000 in GST on closing day. Here's everything you need to know.

$50KMaximum Federal Savings

$1MPrice Cap (Full Rebate)

$3.9B5-Year Tax Relief

What is the First-Time Home Buyer GST Rebate?

When you buy a brand-new home in Canada — whether it's a condo, townhouse, or detached — you normally pay GST (or the federal portion of HST) on the purchase price. On a $900,000 home, that GST amounts to $45,000. For most first-time buyers already stretching to cover a down payment, that's a serious hit.

On May 27, 2025, the federal government introduced the First-Time Home Buyers' GST Rebate (Bill C-4). On March 12, 2026, the bill received Royal Assent — it is now law. Importantly, the final legislation backdated eligibility to March 20, 2025, meaning buyers who signed purchase agreements from that date onward qualify.

Now ConfirmedThis is no longer a proposal. The legislation has passed. If you signed a purchase agreement on or after March 20, 2025 and meet the eligibility criteria, you are entitled to the rebate. The CRA is now processing claims following Royal Assent on March 12, 2026.

The program is expected to deliver $3.9 billion in tax savings to Canadians over its first five years.

How Much Can You Save?

The amount you save depends directly on the purchase price of the home. Here's how the rebate scales:

Home Purchase Price	Rebate	Estimated Savings
Up to $1,000,000	100% of GST	Up to $50,000
$1,250,000	50% of GST	~$25,000
$1,499,999	~1% of GST	~$500
$1,500,000+	No rebate	$0

For homes priced between $1 million and $1.5 million, the rebate phases out gradually — the closer you are to $1 million, the more you get back.

ExampleYou're buying a new condo priced at $850,000. The GST owing is $42,500 (5%). Under the rebate, you'd pay $0 in GST — saving the full $42,500 at closing.

Do You Qualify?

The rebate is designed for genuine first-time buyers. To qualify, you need to meet all of the following:

You are at least 18 years old
You are a Canadian citizen or permanent resident
You have not owned a home — or lived in a home owned by your spouse or common-law partner — at any point in the current calendar year or the four preceding calendar years
You are buying the home as your primary residence, not as an investment property or rental
You will be the first person to live in the home
Your purchase agreement is dated on or after March 20, 2025

Past Owners May Still QualifyIf you owned a home more than five years ago but have been renting since, you may still qualify. The look-back period covers only the current year and the four years before — not your entire ownership history.

What About Buying With a Partner or Spouse?

If you're buying jointly, only one of you needs to meet the first-time buyer criteria. However, if your spouse or common-law partner has previously claimed this rebate, you won't be eligible to claim it yourself.

What Types of Homes Are Eligible?

The rebate applies to three categories of new housing:

1. New Homes Purchased from a Builder

The most common scenario. If you're buying a brand-new condo, townhome, or house directly from a developer, you're covered — as long as you sign your purchase agreement on or after March 20, 2025 and before 2031.

2. Owner-Built Homes

If you own or lease land and plan to build a home yourself (or hire a contractor), you can claim back up to $50,000 of the GST paid on construction costs.

3. Co-operative Housing Shares

Buying into a housing co-op? If you purchase shares of a cooperative housing corporation to live in the unit as your primary residence, and the co-op paid GST on the construction, you may also qualify.

ImportantThe rebate does not apply to resale homes. It is exclusively for new construction that has never been lived in before.

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How Does the Rebate Work at Closing?

When buying from a builder: The rebate is assigned directly to the builder and reflected as a credit on your closing statement — meaning you simply pay less at closing. The builder handles the paperwork.

When building yourself: For owner-built homes, you'll file a rebate application after construction is substantially complete with the CRA.

TipReview your purchase agreement and closing documents carefully with your real estate lawyer to confirm the rebate has been properly applied before you sign off on closing day.

Important Limitations to Know

One claim per lifetime. You can only claim this rebate once.

Spousal limitations apply. If your spouse or common-law partner has previously claimed the FTHB GST Rebate, you cannot claim it.

Assignment sales have restrictions. If you're taking over a purchase agreement through an assignment sale, and the original agreement was signed before March 20, 2025, the rebate won't apply.

Watch OutIf a builder cancels and rewrites a purchase agreement to make a pre-existing deal eligible, the CRA has authority to disallow the rebate in that case.

How It Stacks with Other Programs

Ontario Buyers — Extra $80,000On October 28, 2025, Ontario announced a matching provincial rebate of up to $80,000 on the provincial portion of HST. Combined with the federal rebate, eligible Ontario first-time buyers purchasing a new home under $1 million can save up to $130,000 in total tax relief.

The FTHB GST Rebate doesn't exist in a vacuum. You can use it alongside the FHSA, RRSP Home Buyers' Plan, and existing GST/HST New Housing Rebate. Talk to a mortgage professional or financial advisor to map out your full picture.

Frequently Asked Questions

No. This rebate is exclusively for new homes that have never been lived in before. Resale homes are generally exempt from GST/HST in Canada.

Possibly, yes. The eligibility test only looks back at the current calendar year and the four preceding years. If you haven't owned or lived in a home you (or your spouse) owned during that window, you could qualify.

It depends. If your partner previously claimed the FTHB GST Rebate, you won't be able to claim it. However, if your partner owned a home but never claimed this specific rebate, you might still be eligible. Worth reviewing with a tax professional given the nuance.

When buying from a builder, the rebate is assigned to the builder at closing — you simply pay less out-of-pocket on closing day rather than receiving a cheque later. For owner-built homes, you file a rebate claim with the CRA after construction is complete and receive a refund.

Yes — the rebate covers the federal portion of HST (5%, same as GST). In Ontario, the provincial portion of HST (8%) is handled by a separate Ontario New Housing Rebate. Your builder's team or a real estate lawyer can walk you through the full HST picture for your province.

Yes. Bill C-4 received Royal Assent on March 12, 2026 — it is now fully law. The CRA is processing claims. Eligibility was backdated to March 20, 2025, so buyers who signed purchase agreements from that date onward qualify.

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Disclaimer: This guide is for informational purposes only. Tax rules and eligibility requirements should be confirmed with a qualified real estate lawyer, mortgage professional, or accountant. Source: Department of Finance Canada.