Overview of the FTHB GST/HST Rebate
As part of Canada’s 2025 federal initiatives, the government introduced the First-Time Home Buyers’ (FTHB) GST Rebate, under Bill C-4, Making Life More Affordable for Canadians Act. It targets those purchasing a new home or building one, giving up to $50,000 in federal GST relief for eligible buyers. (canada.ca)
Eligibility Requirements
- Be a first-time home buyer, meaning you (or your spouse/common-law partner) did not own and live in a home, in the current year or any of the four preceding years. (canada.ca)
- Purchase from a builder, build on your own or a co-op share in housing, using it as primary residence. (canada.ca)
- Home value must be $1 million or less to receive full GST rebate; homes between $1 million and $1.5 million get a phased reduction. No rebate for homes priced at $1.5 million or more. (canada.ca)
- Agreements entered on or after May 27, 2025, construction must begin before 2031, completion by 2036. (canada.ca)
How Much You Can Save
| Home Price | Rebate Percentage | Maximum Rebate |
|---|---|---|
| Up to $1,000,000 | 100% of federal GST paid | Up to $50,000 |
| Between $1,000,000–$1,500,000 | Phased rebate, decreasing linearly | Less than full rebate |
| $1,500,000+ | None | $0 |
Example: if you buy a new home priced at $1.2 million, the government rebates the GST portion only—federal GST is 5%. Homes above $1 million and up to $1.5 million get a partial rebate, so here you might get about ${\scriptsize (1 500 000−1200000)/(150000)}×full_rebate (linear phase-out). Your savings would be roughly $25,000 if GST paid was $50,000. Depends on exact GST included.
Steps to Claim the Rebate
- Ensure eligibility: Confirm first-time buyer status and that your home meets type, timing, and value requirements.
- Keep purchase agreements: Document when purchase agreement signed, construction dates, builder information.
- Wait for Royal Assent: The Bill C-4 passed legislation, but applications processed by CRA only once law is in force.
- Use correct forms: GST190 for builder purchases, GST191 for owner-built homes. CRA will update them once laws are fully operational. (canada.ca)
Planning Tips & Impacts
- Buyers in higher-cost markets like Vancouver or Toronto may benefit especially from the full rebate up to $1M and the gradual phase-out above.
- Act within the timeline window—starting May 27, 2025 agreement date—and ensure builder contracts and construction meet the announced deadlines.
- This only rebates the federal portion of GST/HST; provincial components of sales tax in HST provinces are unaffected.
In summary: If you’re a first-time buyer planning to enter the new housing market, this rebate can reduce upfront federal GST costs significantly. But eligibility, timing, and home valuation all matter—review contracts closely and consult CRA or tax professional if you’re near thresholds.