The First-Time Home Buyers’ GST Rebate is a new federal rebate designed to reduce the amount of GST (Goods and Services Tax) that eligible first-time buyers pay on a newly built home. Instead of paying the full 5 % GST on the purchase, qualifying buyers can recover part or all of that tax.

How Much You Can Get

• Homes valued up to $1 million:
  Eligible buyers can receive a rebate of up to 100 % of the GST or federal portion of HST paid — up to a maximum rebate of $50,000.
• Homes between $1 million and $1.5 million:
  The rebate is gradually phased out on a straight-line basis. For example, a $1.25 million home might qualify for roughly half the maximum rebate.
• Homes $1.5 million or more:
  No rebate is available.

Who Is Eligible

To qualify, you must generally meet these conditions:

1. First-time home buyer:
   You haven’t lived in a home you (or your spouse/partner) owned as your primary residence in the calendar year or the four preceding calendar years.
2. Age and status:
   You must be at least 18 years old and a Canadian citizen or permanent resident.
3. Type of purchase:
   The rebate applies if you:
   • Buy a new home from a builder,
   • Build or hire someone to build a home on land you own or lease,
   • Or buy shares in a co-operative housing corporation to use the home as your main residence.
4. Use as primary residence:
   The home must be for your own primary residence — not a rental or investment.
5. Timing:
   The purchase agreement must be entered into after May 27, 2025 (and before 2031), and construction generally must be substantially completed by 2036.

How It Works in Practice

• You generally pay the GST to the builder at closing. After that, you apply for the rebate with the Canada Revenue Agency (CRA) once the legislation receives Royal Assent and forms are available.
• In many cases builders may apply the rebate on your behalf at the point of sale, effectively reducing your upfront cost.
• Each individual can only claim this rebate once in their lifetime, and if your spouse/partner already claimed it you aren’t eligible.

Example

If you buy a newly built home for $800,000:

• The total GST at 5 % would be $40,000.
• If eligible, you could receive a rebate for most or all of that $40,000.

❗ Important Notes

• This rebate is a new measure introduced by recent federal legislation — it’s an addition to the existing GST/HST New Housing Rebate that has been available for years (which has lower thresholds and different conditions).
• The rebate may not yet be fully in force until the necessary tax forms and CRA processes are finalized.
• It’s focused on new or substantially renovated homes — it typically does not apply to resale homes.