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For informational purposes only. Not financial, legal, or professional advice. Consult a licensed mortgage professional before making decisions. See full disclaimer

FAQ Library
Financing•Verified 2026-05-13

What is the new First-Time Home Buyers' GST/HST Rebate (Bill C-4)?

Key Points

  • The new federal FTHB GST/HST Rebate gives eligible first-time buyers up to $50,000 back on new builds — roughly 8× the legacy New Housing Rebate ($6,300 max).

  • Spouse and common-law partner ownership history counts: joint applicants are disqualified if either party owned a home in the lookback window.

  • Resale homes do not qualify — the program is restricted to new construction, substantial renovation, certain owner-built homes, and qualifying co-op shares.

  • Builder typically credits the rebate at closing for transactions after March 12, 2026 — earlier qualifying closings require a retroactive CRA filing.

  • The program is time-limited: APS must be signed before January 1, 2031, with substantial completion before 2036.

Need a Deeper Breakdown?

Read the full research guide this FAQ was derived from for more context and strategy.

Technical Research Verification

Our systems synchronized 2 data points and regulatory frameworks to verify this technical brief.

Read the deeper guide · Financing

2026 First-Time Home Buyer Rebates, Tax Credits & Incentives in Canada

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The First-Time Home Buyers' GST/HST Rebate, enacted by Bill C-4 with Royal Assent on March 12, 2026, eliminates the 5% federal GST (or federal portion of HST) for eligible first-time buyers on a newly-built home up to $1,000,000 — saving up to $50,000. The rebate phases out linearly to zero by $1,500,000.

The First-Time Home Buyers' GST/HST Rebate is a brand-new federal program enacted by Bill C-4 on March 12, 2026 — dramatically more generous than the legacy New Housing Rebate it effectively replaces for first-time buyers.

How Much You Get Back

Purchase PriceFederal Rebate
Up to $1,000,000100% of the 5% federal GST — max $50,000
$1,000,000 – $1,500,000Linear phase-out (e.g. ~$25,000 at $1.25M)
Over $1,500,000No federal rebate

For a $900,000 newly-built home, the 5% GST ($45,000) is rebated in full. For a $1.25M new build, you'd recover roughly $25,000.

Key Eligibility Requirements

To qualify you must:

  • Be 18+ and a Canadian citizen or permanent resident
  • Not have owned or occupied a home — anywhere in the world — in the current calendar year OR any of the 4 preceding calendar years (a 5-year window including the current year)
  • Your spouse or common-law partner must also not have owned a home in that window — joint applicants are blocked if either party owned
  • Use the home as your primary residence and be the first occupant after construction is complete
  • Only ever claim this rebate once in your lifetime

What Qualifies as a Home

  • Newly-built homes purchased from a builder
  • Substantially-renovated homes
  • Certain owner-built homes
  • Shares in a co-operative housing corporation (for qualifying new units)
  • Resale homes are NOT eligible under this program

Critical Dates

  • Royal Assent: March 12, 2026 (program is live)
  • Agreement of purchase and sale signed: on or after March 20, 2025 and before January 1, 2031
  • Construction must begin: before 2031
  • Substantial completion: before 2036

How to Claim

  • Closings AFTER March 12, 2026: Most builders will credit the rebate directly on your statement of adjustments at closing — you simply pay the net amount. Confirm in writing with your builder.
  • Closings BEFORE March 12, 2026 with an APS dated on or after March 20, 2025: You apply directly to the CRA using updated rebate forms.

Your Next Steps

  1. Confirm your FTHB eligibility — especially the spouse/CLP ownership history
  2. Get the rebate amount in writing from your builder — make sure it's on the statement of adjustments
  3. Talk to your real estate lawyer about retroactive CRA filing if you closed before March 12, 2026
  4. Read the full guide → First-Time Home Buyer Rebates Guide