What Is the First-Time Home Buyers’ (FTHB) GST/HST Rebate?
The FTHB GST/HST Rebate was introduced in Bill C-4 (“Making Life More Affordable for Canadians Act”), which received Royal Assent on March 13, 2026. It allows first-time home buyers to eliminate or reduce the GST on new homes, depending on the purchase price. (canada.ca)
- Homes up to $1,000,000 — no GST.
- Homes between $1,000,000 and $1,500,000 — reduced GST.
- Applies to agreements of purchase and sale entered on or after March 20, 2025, and before 2031. (canada.ca)
Who Qualifies and What to Consider
- You must be a first-time home buyer—defined as not owning a home as your primary residence in the previous four calendar years, within or outside Canada. (canada.ca)
- Must be for a new home or substantially renovated residential complex. Existing homes are unaffected.
- The rebate integrates into existing GST/HST frameworks—claims go through CRA, aligned with established new housing rebate processes. Cheatsheets and forms updated in Excise and GST/HST News No. 122. (canada.ca)
Savings Breakdown & Examples
| Home Price | GST Rate | Effective Savings |
|---|---|---|
| $900,000 (new home) | 0% GST | Save full 5% GST (~$45,000) |
| $1,200,000 | Partial GST | Smaller but meaningful savings on first $1,000,000; remainder taxed at standard rate |
Example: For a new house priced at $1,200,000, first qualifying $1 M portion is GST-free, next $200,000 taxed normally—so you pay only on that portion, not on full price.
Actionable Tips for Potential Home Buyers
- If you’re in the $1–$1.5M range, negotiate “new build” or “GST price included” clauses—ensure pricing reflects rebate eligibility.
- Work closely with builder/developer to verify that your purchase contract date (≥ March 20, 2025) qualifies.
- Collect and retain all documents showing home is new/substantially renovated—needed for CRA filing.
- Seek advice if partially owning a home before—check your prior ownership in last four years.
The FTHB GST/HST rebate is a game-changer for anyone stepping into homeownership in Canada, especially in hot markets. Strong savings if called into action—and potentially life-changing for many buying their first property.