The First-Time Home Buyers’ GST Rebate is a federal program designed to help eligible buyers recover some or all of the GST paid on a newly purchased home. Bill C-4 was passed on March 12, 2026, which means that this rebate can provide savings of up to $50,000 on GST when purchasing a newly built home.
Why This Matters for First-Time Home Buyers
For many buyers entering the market, closing costs and upfront expenses can quickly add up. This rebate can help lower the overall cost of a new home, making homeownership more attainable and affordable.
Key benefits include:
- Greater savings compared to resale homes
- Improved affordability and built-in value
- Increased purchasing flexibility
- More room in your budget
Who Qualifies as a First-Time Home Buyer?
This rebate is intended for First-Time Home Buyers who purchase a qualifying new home and meet the Canada Revenue Agency eligibility requirement:
- Must be 18 years or older
- Home will be primary residence
- You have not lived in a home that you or your spouse or common-law partner owned, or jointly owned, whether in or outside of Canada, as your primary place of residence at any time in the calendar year or in the previous four calendar years
- Are a Canadian citizen or permanent resident
- Have not claimed the FTHB Rebate previously
- Sign a purchase agreement with a builder on or after March 20, 2025, and before January 1, 2031
- Construction must begin before 2031 and transfer of ownership must occur before 2036
Eligible Homes
The rebate applies to new construction homes, including:
- Detached homes
- Townhomes
- Duplexes
- Condominiums
- Pre-construction homes
Resale homes are not eligible.
How Much Could You Save?
The rebate amount depends on the purchase price:
- Up to $1,000,000 → Eligible for a full (100%) GST rebate
- $1,000,000–$1,500,000 → Partial rebate (gradually reduced)
- $1,500,000+ → Not eligible
Example savings (GST = 5%):
- $500,000 home → $25,000 rebate
- $750,000 home → $37,500 rebate
- $1,000,000 home → $50,000 rebate
For homes priced between $1M and $1.5M, the rebate decreases proportionally, reaching $0 at $1.5M.
Next Steps Towards Building Your First Home
If you are considering a newly built home and want to learn how the First-Time Home Buyers’ GST Rebate could apply to you, our team would be happy to help.
We would be happy to walk you through:
- Available Home Models that you can build from start to finish (pre-construction) and Move In Ready options
- Reviewing eligibility requirements
- Estimating your potential savings
Connect with us today to learn more about building your first home!
More Programs/Resources For First-Time Home Buyers:
- The Home Buyers Amount (HBTC): Claim up to $10,000 on your tax return for a $1,500 tax credit.
- First Home Savings Account (FHSA): A tax-advantaged savings plan combining RRSP and TFSA benefits.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 (or $120,000 per couple) from your RRSP tax-free, repayable over 15 years.
