What is the First-Time Home Buyers GST/HST Rebate?
The GST/HST rebate for first-time home buyers was introduced under Bill C-4 (the Making Life More Affordable for Canadians Act), which received Royal Assent on March 12, 2026. It eliminates or reduces GST/HST on new homes for first-time buyers—offering up to $50,000 in savings on new homes up to $1 million; and reduced amounts on homes between $1 million and $1.5 million. (canada.ca)
Who qualifies?
To be eligible, you typically must meet all of the following:
- Be a first-time buyer who hasn’t owned a residential property (in Canada or abroad) in the year of purchase or in the preceding four years. (canada.ca)
- Buying a newly constructed or substantially renovated home, or a condo/new housing unit under a lease from builder. (canada.ca)
- Home price must be: • ≤ $1,000,000 for full rebate (zero GST), • Between $1,000,000-$1,500,000 for a partial GST/HST reduction on the GST component. Homes > $1.5 million are not eligible. (canada.ca)
- Agreement of purchase/sale entered into on or after March 20, 2025, and before 2031. (canada.ca)
Practical examples
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Example 1: First-time buyer enters into agreement on a new home priced at $950,000, after March 20, 2025. Since price ≤ $1 million, no GST applies. Savings: full GST that would otherwise be collected (e.g., $47,500 at 5% GST rate).
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Example 2: First-time buyer buys a home for $1.2 million—falls between $1,000,000-$1,500,000. Some GST still applies; rebate covers part of the GST portion. Savings are smaller, but meaningful.
Filing and claiming the rebate
- Use CRA’s forms (GST/HST new housing rebate form), as updated under Bill C-4. Ensure it reflects the new “first-time home buyers” rebate provisions.
- Keep all purchase agreements, builder’s affidavits, and proof of substantial renovation (if applicable).
- Claim on your tax return following the year of acquisition, or earlier if CRA releases claiming schedule.
Tips for maximizing benefit & avoiding pitfalls
- Plan timing: If close to the $1 million cutoff, keep an eye on costs (upgrades, lot premiums) so you stay within full-rebate range.
- Ensure home is “substantially renovated” definitions are met (structural or essential part renovation); document properly.
- If property was previously owned (by you or spouse), check the excluded period (4 years prior); sometimes splitting ownership or partner ownership can affect status.
- Be aware that homes over $1.5 million do not qualify—budget accordingly.
Why this matters now
With rising housing costs, this rebate can reduce upfront costs significantly for first-time home buyers. Knowing these rules allows buyers to plan early, structure purchases carefully, and benefit to the fullest under current tax law.