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First-Time Home Buyer’s GST Rebate: What Your Family Needs to Know

A new proposed GST/HST First-Time Home Buyers Rebate could slash up to CAD 50,000 off the cost of a newly built home. Here’s eligibility, timelines, and what that means for planning your purchase.

By NomadicTax Research Team • 5-8 min read • November 24, 2025

## Overview: What Is the FTHB GST/HST Rebate? - Proposed as part of **Budget 2025**, this federal rebate aims to **eliminate GST** (or the federal portion of HST) for first-time home buyers purchasing newly built homes valued up to **CAD 1 million**, and reduce it for homes valued between **CAD 1 million and CAD 1.5 million**.([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai)) - Maximum rebate: **CAD 50,000**. Above **CAD 1.5 million**, homes aren’t eligible.([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai)) ## Eligibility Criteria Choose a plan based on your home type: - Buying from a builder, building on leased or owned land, or in a cooperative housing setup.([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai)) - Must be a **first-time home buyer**: at least 18 years old, Canadian citizen or permanent resident, and **not have lived in a home owned** by you or your spouse/common-law partner in the year of purchase or four preceding years.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) - If you’ve claimed this rebate once before, you can’t again. Construction must begin after **May 27, 2025**, and substantial completion before **2036**. Agreements must also be signed before **2031**.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) ## Timing & Status - The measure is **proposed legislation** in **Bill C-4** and expected to require **Royal Assent** to take effect.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) - Application forms and guides aren’t yet available. Claims can’t be processed until after the change is law.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) ## Practical Example Suppose Ana is a first-time buyer and purchases a new home from a builder for **CAD 1,250,000**, with ownership transferred in **2025**. Under the proposed rebate: - Homes up to **CAD 1 million** get **100 % GST relief** → full rebate of CAD 50,000. - Homes between CAD 1M-1.5M get partial rebate: roughly proportional phased-out (at mid-point, like at CAD 1.25M, about **50 % of maximum**, i.e. **CAD 25,000**).([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) ## How to Prepare & Plan - If you're house hunting, consider new builds vs resale—this rebate only applies to **newly built or substantially renovated** homes.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) - Time your agreement of purchase to be **on or after May 27, 2025** and aim to have occupancy and construction timeline comply. Delays could disqualify.([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html?utm_source=openai)) - Since this is federal GST (or federal portion of HST), check the provincial portion separately—rebates don’t affect provincial/HST levies directly. - Talk to your builder or tax advisor to understand how the GST is included in the purchase price and how to apply once forms are available. ## Considerations & Risks - Provincial HST parts aren’t covered unless you live in HST participating provinces with different regimes. - Price volatility could push a home slightly above eligibility thresholds. - Pending legislation means details could shift—stay updated. ## Bottom Line If you're looking to jump into homeownership with a new build, this rebate could offer **substantial upfront savings**. Proper structuring and timing can help you capture the full benefit when the law is in place.