Blog . 18.03.2026

First‑Time Home Buyer GST Rebate

First‑Time Home Buyer GST Rebate:
What It Is, Who Qualifies, and How to Claim

Updated March 2026 — The federal First‑Time Home Buyer GST Rebate is now in effect. Eligible first‑time buyers of newly built homes can receive a rebate of the full 5% GST on homes priced up to $1,000,000, with a scaled rebate for homes between $1,000,000 and $1,500,000 (no rebate at or above $1.5M). The legislation received Royal Assent on March 12, 2026.

What is the First‑Time Home Buyer GST Rebate?

The rebate is a federal measure that returns up to the full 5% GST paid on a newly constructed home purchased by an eligible first‑time buyer, to a maximum of $50,000 on a $1,000,000 home. For homes between $1,000,000 and $1,500,000, the rebate phases out linearly (for example, a $1.25M home would be eligible for roughly $25,000 back). Homes $1.5M or more do not qualify.

Who is eligible?

You may qualify if all of the following apply:

  • You are a first‑time home buyer: you have not lived in a home owned by you or your spouse/common‑law partner in the current calendar year or the previous four calendar years.
  • You are 18+ and a Canadian citizen or permanent resident.
  • The home is a new build and will be your primary place of residence, and you (or another eligible purchaser) will be the first occupant after substantial completion.
  • Your agreement of purchase and sale (from a builder) is signed on or after March 20, 2025 and before 2031 (with construction starting before 2031 and substantially completed—with title transfer—before 2036).

Why do some sources list May 27, 2025? Early government backgrounders referenced May 27, 2025. Subsequent legislative updates and industry guidance reflect a finalized agreement‑date window beginning March 20, 2025. Always confirm against the current CRA/Finance Canada guidance at time of purchase.

How much could you save?

  • Up to $1,000,000: 100% of GST rebated (max $50,000).
  • $1,000,000–$1,500,000: Rebate phases out linearly (e.g., $1.25M ≈ $25,000).
  • $1,500,000+: No rebate.

Key dates to know

  • Agreement signed: On or after March 20, 2025 and before 2031 (for builder purchases and co‑op shares).
  • Construction: Must begin before 2031 and be substantially complete before 2036 (owner‑built and builder purchases).
  • Royal Assent: March 12, 2026—program now in effect; CRA processing can proceed.

How the claiming process generally works

  • For new homes purchased from a builder: Builders are permitted to credit the rebate at closing (subject to verification that the purchaser qualifies), and then submit the application to the CRA. Practices may vary by builder and timing.
  • For owner‑built homes: You typically pay GST on inputs and apply to the CRA for the rebate after substantial completion.

If you’re under contract but haven’t taken possession yet

If your agreement is already signed but you haven’t closed or taken possession, speak with your Sales Manager. They can help confirm whether:

  • your agreement date falls within the eligible window;
  • the rebate can be credited at closing on your file; and
  • any documentation is needed to verify first‑time buyer status.
    Builders can credit the rebate once CRA forms/processes are available, so confirming details before closing is important.

If you’ve already taken possession

If you took possession before Royal Assent (March 12, 2026) or your builder did not credit the rebate at closing, you’ll need to apply directly to the CRA for the First‑Time Home Buyer GST/HST Rebate. The CRA now has authority to process applications following Royal Assent. Check the CRA’s instructions and forms and submit your claim within the prescribed timelines.

Frequently asked questions

Does this rebate apply to resale homes?
No. The measure targets newly constructed homes (including certain co‑op shares and owner‑built homes).

Can I claim this more than once?
No. The legislation limits the rebate to one claim per individual (and you’re ineligible if your spouse/partner has previously claimed it).

We’re buying together—do we both have to be first‑time buyers?
At least one purchaser must meet the first‑time buyer definition and be the first occupant of the home; however, additional restrictions apply and both buyers must meet core criteria for many scenarios—review CRA guidance for your specific case.

Official resources

Important note

This article is for general information only and does not constitute legal, tax, or accounting advice. Program details—including eligibility dates and documentation—are set by the Government of Canada and may change. Please consult the CRA or a qualified advisor to confirm your eligibility and filing requirements.

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