Tax Planning
Navigating First-Time Homeowner Relief Under New GST/HST Rebate Rules
New rebates and GST reliefs for first-time homebuyers aim to lower upfront costs—what qualifies, when, and how to plan your purchase.
By NomadicTax Research Team • 5-8 min read • April 4, 2026
## What’s New for First-Time Home Buyers
Part of Bill C-4 includes a **GST/HST rebate** (or exemption) adjusted for first-time homebuyers of **new homes**:
- **New homes up to $1 million** are **fully exempt** from GST.
- Homes between **$1 million and $1.5 million** receive **partial (reduced) GST coverage**.
- Homes at or above **$1.5 million** are not eligible for this benefit. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/03/legislation-to-make-life-more-affordable-receives-royal-assent.html?utm_source=openai))
These changes apply to **purchase agreements entered on or after March 20, 2025**, and before **2031**, with construction needing substantial completion before **2036**. ([canada.ca](https://www.canada.ca/en/department-finance/corporate/transparency/2025/senate-cow-c4-2025-06-17.html?utm_source=openai))
## What Buyers Should Know
- **New builds only**: This is for newly constructed homes under a builder purchase agreement. Existing resale homes do not apply.
- **Agreement date matters**: Make sure your offer or builder contract is *on or after March 20, 2025*. Anything before that is ineligible.
- **Home value limits**: If your purchase price is between $1M-$1.5M, expect proportionate phase-out; full relief only below $1M.
- **Construction deadline**: The home must be substantially completed by 2036 to qualify.
## Practical Example
Suppose you contract a new home priced at $1.2 million on **April 15, 2025**. Since it's between $1M-$1.5M, you’ll get a **partial rebate** of GST, phased out linearly (e.g., roughly half between those thresholds) — up to a cap of $50,000. $. Full 100% exemption if price ≤ $1M. \$ Price ≥ \$1.5M, no rebate. Also, ensure substantial completion by 2036.
## How to Plan for the Rebate
- **Lock in contracts early** to ensure purchase agreement dates are valid.
- **Get professional help**: speak to realtor, lawyer, or tax advisor to verify how the rebate works in your province (if HST applies, besides GST).
- **Document everything**: contracts, builder agreements, completion dates, proof of first-time buyer status.
**Bottom line**: This GST relief is one of the most generous in recent memory for new home buyers—but only if you hit the right timing, values, and construction deadlines. Plan carefully to make this work for you.