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

> 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.

Category: Financing
Last verified: 2026-05-13
Source: https://ratellow.com/faqs/financing/what-is-the-new-first-time-home-buyers-gst-hst-rebate

## Answer
**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 Price | Federal Rebate |
|---|---|
| Up to $1,000,000 | **100% of the 5% federal GST — max $50,000** |
| $1,000,000 – $1,500,000 | Linear phase-out (e.g. ~$25,000 at $1.25M) |
| Over $1,500,000 | No 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](/guides/first-time-buyer-rebates)

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/first-time-buyer-rebates

## Sources
- First-time home buyers' (FTHB) GST/HST rebate — CRA — https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html
- Legislation to make life more affordable receives Royal Assent — https://www.canada.ca/en/department-finance/news/2026/03/legislation-to-make-life-more-affordable-receives-royal-assent.html