What Is the First-Time Home Buyers (FTHB) GST/HST Rebate?
As part of Budget 2025, the Canadian government has proposed a new GST rebate to assist first-time home buyers. The rebate would:
- Eliminate the 5 % GST (or federal portion of the HST) on new homes up to CAD $1 million.(canada.ca)
- Provide reduced GST for home prices between $1 million and $1.5 million, phased out gradually.(canada.ca)
- Apply alongside the existing GST/HST new housing rebate where applicable. The new FTHB rebate serves as a “top-up.”(canada.ca)
Note: This is proposed legislation — it has not yet received Royal Assent.(canada.ca)
Who Qualifies — Key Criteria
To be considered an eligible first-time home buyer under this proposed rebate:
- Age and status: Be at least 18 years old; a Canadian citizen or permanent resident.(canada.ca)
- Didn’t own a home in the year of purchase or in the previous four calendar years—neither you nor your spouse/common-law partner owned a principal residence anywhere.(canada.ca)
- The property must be a new home or substantially renovated, used as your primary place of residence. Homes from builders, co-ops, or owner-built with leased land qualify under conditions.(canada.ca)
- The agreement of purchase must be entered on or after May 27, 2025 and before 2031, and construction must begin before 2031 and substantially complete before 2036.(canada.ca)
How Much Can You Get — Rebate Examples
| Home Price | Rebate Amount | Notes |
|---|---|---|
| ≤ $1,000,000 | 100% of GST paid (max $50,000) | Full elimination of federal GST part.(canada.ca) |
| Between $1,000,000–$1,500,000 | Proportional rebate | Phased out linearly. E.g. $1.25M home gets 50% rebate ~ $25,000.(canada.ca) |
| $1,500,000 or more | No rebate under this program | No application – cutoff applies.(canada.ca) |
Compliance Checklist
To ensure your claim is valid, keep in mind:
- Documents like purchase agreements, completion certificates, builder invoices, and proof of primary residence will be essential.
- Timing matters: Ownership transfer, construction start, and substantial completion dates all affect eligibility.(canada.ca)
- Never owned rule is strict—if you or your spouse/common-law owned any primary residence within prior four years, you’re ineligible.(canada.ca)
- Only the federal portion of GST/HST is affected. Provincial components of HST are not eligible.(canada.ca)
- Wait for the legislation to receive Royal Assent. Claims are only possible after that.(canada.ca)
Planning Tips and Common Scenarios
- Buying a new build vs renovating: whereas builder purchases follow certain rules for start dates and substantial completion, owner-built homes have their own set of criteria. Plan early.(canada.ca)
- High-cost metro areas: the rebate still works for homes between $1M and $1.5M, even in cities like Vancouver or Toronto—but expect phased reduction.(canada.ca)
- Married or common-law partners: only one partner needs to satisfy “first-time home buyer” status, but joint ownership rules apply. Split ownership structures can complicate eligibility.
Staying Current
Since this policy is still under review:
- Monitor the status of Bill C-4, which contains this measure.(budget.canada.ca)
- Look for updated CRA application forms and guides once the bills receive Royal Assent. Supervising agencies will issue guidance.(canada.ca)
By understanding these rules now, first-time home buyers can better plan purchase timing, financing, and contracts to maximize savings under the proposed FTHB GST rebate.