What Changed Under Bill C-4
Legislation to make life more affordable (Bill C-4) received Royal Assent on March 12, 2026, making the first-time home buyers’ GST/HST rebate law. (canada.ca) Under this change:
- The government eliminates GST/HST for first-time home buyers purchasing a new home up to $1 million.
- For homes priced between $1 million and $1.5 million, the GST/HST will be reduced. (canada.ca)
- The rebate generally applies to agreements of purchase and sale entered on or after March 20, 2025 and before 2031. (canada.ca)
Who Qualifies?
Eligibility requires that the buyer:
- Be a first-time home buyer, meaning you did not own a home that served as your primary residence in the current or previous four calendar years. (canada.ca)
- Be acquiring a new home (not resale), or a substantially renovated unit or a residential complex unit. (canada.ca)
- Meet provincial/territorial requirements in addition to federal, including occupancy, builder certifications, etc.
Estimated Savings and Examples
| Scenario | Home Price | GST/HST Without Rebate | With Rebate (Law Passed) | Estimated Savings* |
|---|---|---|---|---|
| Single new home | $900,000 | ~5% GST = $45,000 | Rebate = full elimination → $0 | $45,000 |
| Premium new home | $1,200,000 | 5% GST = $60,000 | Reduced rate rebate (e.g. partial elimination) → varies | ~$30,000–$50,000 |
<sub>*Actual savings depend on applicable GST/HST rate, provincial rules, and rebate formulas.</sub>
How and When to Apply
- Provider Responsibility: Builder or seller usually reduces GST/HST at point of sale—or buyer applies through the CRA pool of rebate forms. Check contract terms carefully.
- Documentation: You will need proof of first-time status, purchase date, builder specifications, certificate that unit is “new,” etc.
- Deadlines: The rebate only applies for purchases made on or after March 20, 2025 and entries before 2031. Agreements before that may still be eligible if new. (canada.ca)
Steps to Take If You’re Buying
- Confirm eligibility—check prior home ownership, dates.
- Review agreement of sale—ensure dates, home status, GST/HST details are known.
- Consult with CRA or tax professional—to ensure rebate is applied properly.
- Save your documentation—you’ll need evidence to support the claim.
Why This Matters
- Makes entry into home ownership more affordable for first-time buyers.
- Helps stimulate construction of new homes and residential development.
- Offers potential savings in the tens of thousands of dollars—not simply fringe benefits.
With the law in effect since March 2026, first-time home buyers should plan strategically to take full advantage. Whether it’s choosing a home under $1 million or ensuring your contract and documents align, the GST/HST First-Time Home Buyer Rebate could be a major financial win.